14 Different Types of Checks

September 24, 2021

Did you know that there are more than one kind of check? Learn more about them here and don't miss out on these unique check cashing features.

Checks can be used for many purposes. Checks are harder to become lost or stolen, they can make large purchases more secure, they can make it easier to send money to foreign countries without having to exchange foreign currencies, and check cashing is a relatively easy errand to run at any local check cashing store

What Different Types of Checks Are There?  

Even if you've never used a check before, you probably know what they are. But did you know that there are different kinds of checks? There are many kinds of checks that come from different financial providers and offer many different kinds of useful features. 

  1. Bank Checks 
  2. Payroll Checks
  3. E-Checks or Electronic Checks 
  4. Traveler's Checks 
  5. Personal Checks
  6. Money Orders
  7. Certified Checks 
  8. Cashier Checks
  9. Commercial Checks
  10. Business Checks
  11. Government Checks
  12. Tax Refund Checks
  13. Insurance Checks
  14. Out-of-State Checks

What is a Bank Check? 

A bank check is what's considered to be a regular or traditional check. They are given to you or bought by you through your bank or credit union. You can buy a booklet of bank checks that are usually linked to your checking account. 

What are Payroll Checks?

Payroll checks and paychecks are the same things. A check that's given to you from payroll, the division at your job that handles employee income payments, is a paycheck or a payroll check. Paychecks are usually given on a scheduled basis like once a week, once a month, or once every two weeks. Employees might also choose to enroll in direct deposit so that their income deposits directly into their bank account rather than getting a physical check. 

What are E-Checks? 

E-checks are electronic checks. They are a digital version of a check. Check out your bank account to see if they offer e-check services. Electronic checks are a type of electronically certified bank check that you can use to make secure online payments. 

What are Traveler's Checks? 

A traveler's check is exactly what it sounds like—a check designed specifically for someone who is traveling. A traveler's check is a kind of prepaid check that can be used like cash while you're traveling away from home. Traveler's checks are usually insured in some way so they can be safer to carry around while you travel than cash.

What are Personal Checks?

A personal check is a bank check from someone's personal bank account. Personal checks are going to be found in someone's personal checkbook. You can buy your own personal checkbook at your bank or credit union. 

What are Money Orders?

A money order is a little like a prepaid check. At agent locations, you can get a money order, which will then act as a prepaid paper form of payment. Western Union is a common money order provider. 

What are Certified Checks? 

A certified check is a type of prepaid check. Regular checks are not prepaid but are paid for when the check recipient deposits the check they've been given. A prepaid certified check is paid for by the check giver when they take out the check and pay the amount ahead of time. 

What are Cashier's Checks?

A cashier's check is another type of prepaid check. These checks are also taken out by the bank account owner and are created by the issuing bank. Now you'll have a prepaid check, already paid for, and written out to the intended recipient. 

Cashier's Check vs Certified Check

As you can see, cashier's checks and certified checks are very similar. They're both prepaid, secure forms of payment. The key difference between them is who signs them and how they are prepaid. 

Cashier's checks are signed by the bank while certified checks are signed by you, the person giving the check. Cashier's checks are paid by the bank's account and then you pay the bank while certified checks are paid by your own account. And that's the difference between a cashier's check vs certified check

Cashier's Check vs Money Order

Cashier's checks and money orders are very similar. They are both prepaid payment options that give the cashier check or money order purchaser a secure paper payment to use. The main difference is that cashier's checks are issued by a bank and a money order can be issued by any money order location. 

Cashier's Check vs Personal Check

Cashier's checks and personal checks are both checks but that's mostly where the similarities end. A cashier's check is prepaid while a personal check is not. A cashier's check is also issued and paid for by the bank while personal checks are paid directly from a personal bank account. 

What are Commercial Checks?

When you have a business you need a way to accept payments from your customers. Customers might pay with debit cards, credit cards, cash, or checks. When a customer pays a business with a check, this check is called a commercial check because the name on the check isn't a personal name but the name of a company. 

What are Business Checks?

You can also order business checks that are linked to your business bank account so that you can write and give checks in the name of your business. 

What are Government Checks?

A government check is exactly as it sounds—a check written to you by the government. This can include checks like financial aid, a government grant, social security checks, unemployment benefits, food stamps, or a tax refund. 

What are Tax Refund Checks?

One type of government check that many taxpayers will be familiar with, is a tax refund check. This is written by the IRS and given to taxpayers who qualify to receive a tax refund. Tax refunds are sent out during tax season after a taxpayer has sent the IRS their tax return. 

What are Insurance Checks?

An insurance check is written and paid for by the insurance company after something that qualifies for an insurance payment occurs. For example, if you get into a car accident and your car needs repairs, you might qualify for a payment from your insurance to help with car repair costs. Insurance checks are then often written out to two parties, you and the auto repair shop, to ensure that the funds are used for their intended purpose. 

What are Out-of-State Checks?

The thing about out-of-state checks is that they can be any check, so long as the check issuer is from out of state. A check becomes an out-of-state check when the check writer's bank account doesn't exist in the state where the check is being deposited. This can sometimes make it more difficult to use checks when your check provider doesn't operate in that state you're in. 

In Conclusion, 

There are so many different kinds of checks and all of them have their own useful features. Don't miss out on some really useful financial resources and don't forget to use checks and money orders for your secure payment needs.