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When writing an order check you will have to have the printed words ‘bearer’ cancelled and the name of the company or person you have ordered to withdraw the check. When order checks are presented most banks may ask for proof of identity, this is to ensure that the money is paid to the right person.When an order check is crossed it generally means that the written amount is payable only to the account of the company or person whose name is on the check, no cash will be issued otherwise. An order check is one that can only be paid to a particular payee, who can only pass the check to another person by signing his or her name behind it.
I agree with Mr. Vinod answer
Order cheque is made to name of company or person and its purpose is the shurity of transfer mony in correct a/c
A cheque is simply a written order directing a bank to release a stated amount of money from a specific bank account. Here is how it works, if you have a current account with a bank, you are provided with a cheque book.
With this you can order the bank to pay an amount of money to a recipient in your absence, by filling in the details ( amount of money, date, the recipient’s name(optional) and your signature), except for particular reasons, banks readily release payments once presented with signed cheques.
Cheques can be used by individuals or corporations.
The invention of cheques is credited to the ancient banking systems; this method of payment eased and increased trade because it crossed out the strenuous and sometimes dangerous need for traders to carry large quantities of forms of legal tenders such as gold, to transact business. However it was the20th century that saw the usage of cheque soar as a popular way for to make non cash payments.
Yearly lots of cheques were issued, this reached its peak with the automation of the processing of cheques. In most developed countries the use of cheques have declined with the spread of electronic banking, today most prefer credit cards, debit cards, and internet banking over cheques. For the banks electronic banking is relatively cheaper since it averts the cost of printing, for individuals it saves time. However cheques are still widely used in several developing countries.
Legally in relation to cheques, the drawer is the person who writes or issues the cheque to the payee, who is the recipient and who in turn gives the cheque to the drawee, which is the bank, for payment of the specified amount. There are different types of cheques but for the purpose of this article we will focus on order and bearer cheques.
When writing an order cheque you will have to have the printed words ‘bearer’ cancelled and the name of the company or person you have ordered to withdraw the cheque. When order cheques are presented most banks may ask for proof of identity, this is to ensure that the money is paid to the right person.
When an order cheque is crossed it generally means that the written amount is payable only to the account of the company or person whose name is on the cheque, no cash will be issued otherwise. An order cheque is one that can only be paid to a particular payee, who can only pass the cheque to another person by signing his or her name behind it.
Whilst bearer cheque does not requires you not to cancel the printed words ‘bearer’ on the cheque, just to fill the amount you want withdrawn. It can be cashed by anyone who bears and presents it at a bank’s counter for payment, no names are required simply possession of the cheque. This is where unlike an order cheque bearer cheques are risky because if misplaced, whosoever may find it can withdraw the money from the bank.
A cheque which is paid to a named person with the words ' or order' after the payee's name showing that the payee can endorse the cheque and thereby passing it to another person.
I agree with Sahar Alech
It means only account holder can draw the money mention on cheque
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