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Thread: Paying vs Cashing Checks

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    Paying vs Cashing Checks

    This was likely brought up before on predecessor site. However, there is a distinct difference between paying and cashing a check. "Cashing" a check is associated with getting cash out of a check from a bank when the check is drawn on another bank. When the check is drawn on the same bank then its a matter of the bank paying the check. The bottom left or left-middle usually tells you who the drawee is on a check.

    So it seems to follow that:

    [1] When you are presenting a check to bank and you want cash or the like and that check is drawn on that bank then CASHING is NOT what you want to do and "CASHING A CHECK" is something you want to avoid suggesting;
    [2] When you are presenting a check to a bank and that check is not drawn on that bank and you want cash--then that is 'cashing' a check and is a 'special service'.

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    (#8 in the image above is the 'to/on/against/drawee spot'--this could extend to the middle.)
    (#4 is allegedly the drawers signature.)
    ("Chuck Ryder" get it ? get it? -> "Check Writer".)

    If your payroll check is drawn on a different bank than your bank then might be why you would be "Cashing it" at your bank. But if the check is drawn on the same bank you are aiming to get $$ from, then they are paying the check not CASHING it. If you think this is about splitting hairs: THE ABOVE IS SPELLED OUT IN BANKING TEXTBOOKS. The impression is that if at a bank you say you want to cash a check that is drawn on their bank --they might treat the transaction as if the check were drawn on a different bank "BECAUSE YOU ASKED FOR THAT SERVICE" and because you didn't use the 'magic words' "I am presenting this to your bank for payment" or the like.

    Related: Anatomy of a Check.
    Last edited by allodial; 09-18-14 at 09:31 PM.
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