The canceled check is one that the beneficiary cashed successfully. In addition, the bank has already discounted the amount corresponding to the issuer’s account (drawer).
That type of check is used as proof of payment . That is, it is a way to record an operation.
Features of the canceled check
Among the features the canceled check include:
- It serves as evidence on the charge that has been made to the drawer’s deposits.
- The beneficiarycan keep the document as a collection receipt .
- The canceled check isusually chopped with a punching machine and the payment date is printed, as well as the name and number of the clearing house. Said association is in charge of supervising the respective liquidation or reimbursement to the paying bank . For example, if the issuer has his money in bank A, but the check is canceled in bank B, the latter must receive compensation from the former.
- The main participants of the canceled check are: Issuer (drawer), the financial institutionwhere the issuer has an account (drained) and the beneficiary .
- The checkscanceled remain in the archives of the bank until the end of the month. At that time, they are sent or collected by the customer along with the account statement for the period.