The guaranteed check is a type of check that has a guarantee of payment, usually by means of a guarantee or a conformity of the bank of the drawee, which guarantees that there are funds to pay it.
This type of check differs from that issued by an individual or company in that it provides a security of collection to the creditor. In this case there is a guarantee or a bank guarantee and therefore the funds are insured. In this way, they are usually accepted as equivalent to cash.
How a guaranteed check is obtained
The process to obtain a guaranteed check is simple. We must go to our bank and request it. The checkbook is similar to that of the other checks, but carries a conformity of the entity (on the back) in which it agrees to accept the collection. In addition, the bank establishes certain terms and limits of said guarantee, after examining the solvency of the client. On the other hand, if the account is canceled, the entity will request the customer to return the guaranteed checkbook.
Examples of guaranteed checks
Some examples of guaranteed checks are:
- Fuel Check It can be exchanged for fuel at the Repsol, Campsa and Petronor gas stations. Its drawback is that it does not support change in cash and therefore, it must be refilled for exact amounts. On the other hand, it has an expiration date.
- Travel Check As the name implies, they are used to travel to another country and be able to exchange them for cash or use them as a means of payment. In this case, it works like money in bills, so you can add cash or receive change if the amount is not accurate.
- Eurocheque It is a system created by various Central-European entities and that serves as a central payment. To add greater security, said checkbook is associated with an electronic debit card.