Pros and Cons of Cheques

Cheques are orders to banks requesting them to pay the stated sum of money to the drawer’s account. It is normally written in a specially printed form.

It is drawn by a customer in his or her bank and must be signed by the customer. It is payable on demand and must state exactly the amount of money to be paid by the bank.

Pros and Cons of Cheques

Pros of Cheques

  1. They are safer

When using cheques it is safe in that someone can carry a large sum of money from one place to another without feting the risk of the money being stolen.

  1. They cannot be used by thieves

It is not possible for the cheques to be used by thieves as they are required to be signed by both the person giving out the cheque and the receiver of the cheque hence not possible for the thieves to use them.

  1. They are not deposited immediately

The cheques have not deposited the date they are written. They take some time for them to be deposited hence someone should have plans on when to use the money before the cheque is written hence it makes someone budget for his or her money.

  1. They can be traced

In case they are lost, they can be traced by taking them to the bank that signed the cheque hence it is not easy for an individual to lose his or her money.

  1. Payments can easily be stopped

If the drawer decides that he or she is not ready to use the money he or she can decide to stop the payment of the money by the bank.

  1. They can be posted more easily and cheaply

It is cheap to post cheques as there is no money that is needed for a cheque to be posted and in the bank, they are placed at a place where they are picked hence people do not really need to queue for them to post cheques.

Cons of Cheques

  1. Some creditors do not accept cheques

Some creditor does not use cheques hence if it is the only way someone has to make payment it may be difficult as the transaction will not take place.

  1. They are not suitable for small amounts

Cheques are not a suitable means of payment for small amounts. It is only good when the transaction involves large sums of money.

  1. It is time-consuming

The cheques involve a long process whereby it has to be written, then you wait for it to mature before it is deposited hence it cannot be used in case the money is needed urgently.

  1. Crossed cheques are not useful to people who do not have accounts

For the crossed cheques to be used the person should have an account as the money is to be deposed directly into the account hence it can be useless if the person does not have an account.

  1. Bank charges are put on checkbooks and dishonored cheques

For someone or a company to acquire a checkbook some amount has to be paid. Again if the person or company writes a cheque to someone then it is dishonored then they are bound to charge the person which may turn out to be expensive.


Cheques are normally used when someone is transacting large sums

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