Using a Checkbook

A check is a payment order issued against a bank that allows the person receiving it to collect a certain amount of money that is detailed in the document and that must be available in the bank account of the person who issues it.

The check is used as a means of payment, it replaces cash money, allowing a person to make a withdrawal from an account, without necessarily being the holder of such account.

There are three types of checks:

- Common checks

- Post-dated checks

- Settlement checks

Common checks can be cashed within a 30-day period from the date of issue. Imagen alusiva sobre cómo usar un cheque

Post-dated checks are those issued on a date, but to be cashed at a later date. In this case there is also a maximum period of thirty days for cashing or depositing them, but counted from the date written on the check. To see an example of a post-dated check . click here.

Settlement checks are a means of paying sums of money due. Unlike other types of checks, settlement checks are issued by the BCRA (which, in turn, delivers them to banks on consignment, according to the requests made by the public). They are valid for 30 calendar days from the date written in the document, and may be endorsed twice. They can be issued in pesos or in dollars, but the latter can only be used for real estate transactions.

Among other reasons, checks can be rejected as a result of:

- Non-sufficient funds

- Check irregularities

- Reasons—unknown at the time of issuance–that prevent payment to be made..

The account holder instructing the payments incurs in penalties for check rejections.

The loss or theft of certificates of deposits or checks should be reported immediately to the financial institution.

Such communication must be ratified on the same day by means of a note containing the following information:

- Name of the institution and branch in which the account is opened;

- Number and denomination of the account;

- Reason for making such report;

- Type and number of documents concerned;

- Full name of the person making the report and the type and number of ID submitted.