View Full Version : Pay to the order of party x... Pay to bearer

04-09-13, 08:58 PM
So "pay to the order of" is mentioned on the USPS website


It's interesting they state

"Nonnegotiable Instruments (Documents) - Registered bonds, checks, money orders and drafts made out to specific recipients; deeds, wills, and similar documents. Stock certificates are considered nonnegotiable unless endorsed in blank."

are considered

...to have no value. If postal insurance coverage is purchased, the customer will only be reimbursed for the replacement expense of the documents (See Additional Notes on Indemnity Limits).

They also state pay to bearer, negotiable instruments are insured at face value...

Also, when it comes to rates, since the pay to the order of John Doe is considered "personal info"

Domestic Mail Manual (DMM) 243.2.1* provides that mailable matter that is neither mailed or required to be mailed as First-Class Mail or Periodicals may be eligible for Standard Mail rates. DMM 233.2.3* prescribes that matter containing personal information must be mailed as First-Class Mail or as Express Mail. Personal information is any information specific to the addressee.

A check which is made payable only to the addressee or only to a specific individual, i.e., “Pay to the order of John Doe,” “Pay to Jane Doe or order,” is considered “personal” information and generally is mailable only at the First-Class rates of postage.

A printed (computer-generated) bearer check, that may be negotiated by anyone who presents it for payment would be acceptable at the Standard Mail rates. Examples include those styled to "Pay to John Doe or Bearer," "Pay to Bearer," "Pay to Addressee or Bearer," “Pay to Cash,” “Pay to the Order of John Doe or Bearer,” “Pay to the Order of Bearer” or “Pay to the Order of Bearer or John Doe Addressee.”

Since the $5.00 rebate check in the example is a “bearer” check that can be negotiated by anyone, it does not have the characteristics of “personal information” and is therefore, not required to be mailed as First-Class Mail. The bearer check may be mailed at the Standard Mail rates.

This is showing a distinction in the two types of checks. Some in the club have stated crossing out the "the order of" part of the check, but, "to bearer" could also be added after the name of the party. I think the deal here is whether the check can be negotiated without the specific individual named.