Check payment

A check payment is a negotiable instrument drawn against deposited funds, to pay a specific entity a specific amount of funds on demand. A check has traditionally been physically routed from the payer to the payee, then to the payee's bank, which issues funds to the payee, and then by the payee's bank to the payer's bank. The payer's bank then shifts funds from the payer's account to the payee's bank, thereby settling all accounts.

Related Courses

Payables Management