Checks in the banking system

In the United States, it is very common to pay by check. When you buy or sell something or provide paid services, the buyer or customer writes a check to the seller or service provider. In turn, the recipient of the check can cash it.

The scheme is as follows. The owner of an account in an American bank can order a checkbook, which can be used for cashless payments. The checkbook contains obligatory information: account number, bank code, holder’s name and his personal information. In fact, the checkbook, like a bank card, is tied to a specific bank account. When paying for a product or service, the checkbook holder fills out a check, signs it and indicates the amount (value). To get money from this check, the recipient:

Goes to the bank where the account was opened and the checkbook was issued
presents the signed cheque.
The specified amount is withdrawn from the account and given to the recipient.

The peculiarity of this system is that very often the bank does not issue the requested amount in cash immediately, but credits it to the recipient’s account and only then cashes it.