written check

14 Different Types of Checks

March 23, 2023

Did you know that there are many types of checks? 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. But did you know there are different types of checks that can provide different types of advantages?

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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 types of checks? There are many types of checks that come from different financial providers and offer many different kinds of useful features. 

List of Different Types of Checks:

  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 Check
  10. Business Checks
  11. Government Checks
  12. Tax Refund Checks
  13. Insurance Checks
  14. Out-of-State Checks

1. What is a Bank Check? 

bank checks

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. 

2. What are Payroll Checks?

payroll checks

Payroll checks and paychecks are the same things. They are the type of check that is 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. 

3. What are E-Checks? 

electronic 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. 

4. What are Traveler's Checks? 

travelers 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 type of check that is like a 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.

5. What are Personal Checks?

personal checks

It is a bank check from someone's personal bank account. These are the types of checks found in someone's personal checkbook. You can buy your own personal checkbook at your bank or credit union. 

6. 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. 

7. 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. 

8. What are Cashier's Checks?

This 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. 

9. What are Commercial Checks?

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. 

10. What are Business Checks?

business checks

You can order this type of checks for your business and link them to your business bank account so that you can write and give checks in the name of your business. 

11. What are Government Checks?

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. 

12. 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. 

13. 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. 

14. What are Out-of-State Checks?

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. 

What's the Difference between the Different Types of Checks? 

All of these different types of checks have their own pros and cons to consider when seeking financial solutions. 

Cashier's Check vs Certified Check

They're both prepaid, secure forms of payment. The key difference between them is who signs them and how they are prepaid. Certified checks are signed by you, the person giving the check, and paid by your own account.

Cashier's Check vs Money Order

These are both prepaid payment options that give the purchaser a secure paper payment to use. The main difference is that a money order can be issued by any money order location and not just banks.

Cashier's Check vs Personal Check

A personal check is not prepaid and is paid directly from a personal bank account. 

In Conclusion, 

There are so many different types 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.