Cheques are grouped in three ways: by who can be paid (bearer, order, self), by how they can be paid (open, crossed, account payee) and by their date (post-dated, ante-dated, stale). A few more are not written by you at all but issued by the bank itself, such as a manager's cheque or a gift cheque. One cheque can belong to several groups at once. A rent cheque in Dubai, for example, is usually an account payee, post-dated order cheque.
This guide covers all thirteen common types in two to four sentences each, with links to the full explanation where one exists. The summary table comes first so you can find the one you need quickly.
Summary table: types of cheques at a glance
| Type | What makes it that type | Typical use | Risk if lost |
|---|---|---|---|
| Bearer | "Or bearer" left on the cheque | Small cash payments, handed over in person | High: whoever holds it can cash it |
| Order | "Or bearer" struck out, or "or order" printed | Payments to a named person | Medium |
| Self | Payee is "Self" | Withdrawing cash from your own account | High once signed |
| Crossed | Two parallel lines across the top-left corner | Most business payments | Low: bank account only |
| Account payee | Crossing with "A/C Payee" written inside | Suppliers, rent, salaries, deposits | Lowest: named payee's account only |
| Post-dated | Dated in the future | Rent, loan instalments, staged payments | Medium, for a long time |
| Ante-dated | Dated in the past | Back-dating to match an invoice or agreement | Shorter remaining validity |
| Stale | Validity period has run out | None: it will be returned | Low, but the debt remains |
| Cancelled | Lines across it and "CANCELLED" written | Proof of account details for KYC or mandates | Low |
| Banker's / manager's cheque | Drawn by the bank on itself, paid for in advance | Property deals, deposits, tenders | Medium: hard to stop |
| Multicity / at-par | Payable at any branch of the bank | Standard on most Indian cheque books | Same as the crossing used |
| Travellers' | Pre-paid, fixed value, signed twice | Foreign travel (now largely obsolete) | Low: refundable if reported |
| Gift | Pre-paid cheque in a decorative format | Weddings, festivals, corporate gifts | Medium |
Types by who can be paid
Bearer cheque
A bearer cheque is payable to whoever presents it at the counter, because the words "or bearer" after the payee's name have been left in place. That makes it convenient for quick cash payments and dangerous to lose: the bank has no reason to ask how the holder came to have it. Use one only for small amounts handed over in person.
Order cheque
Strike out "or bearer" and the cheque becomes an order cheque, payable only to the named payee or to someone they endorse it to. The bank can ask the person presenting it to prove who they are. It is the default choice for any cheque that is not crossed.
Self cheque
A self cheque has "Self" in the payee line and is used to take cash out of your own account at your own bank. If it is also left as a bearer cheque, anyone carrying it can collect the cash, so treat a signed self cheque like money.
Types by how they can be paid: crossed and account payee
Crossed cheque
A crossed cheque has two parallel lines drawn across the top-left corner. The bank will not pay it in cash over the counter. It must go into a bank account. Writing a bank's name between the lines (a special crossing) narrows it further to that bank. Crossing is free and removes most of the risk of a cheque being stolen and cashed.
Account payee cheque
An account payee cheque is crossed with "A/C Payee" (or "Account Payee Only") written between the lines. Banks will credit it only to an account in the payee's own name, so it cannot be endorsed to someone else. In India this is the normal way to pay suppliers and staff. In the Gulf, many businesses issue account payee cheques by default.
Types by date
Post-dated cheque
A post-dated cheque (PDC) carries a future date and cannot be paid before that date. PDCs are standard for rent and instalments in the UAE and across the Gulf, and common for loans in India. The risk is not the cheque itself. It is forgetting it is due and not keeping enough money in the account months later.
Ante-dated cheque
An ante-dated cheque carries a date earlier than the day it is actually written, often to match an invoice or agreement date. It is valid as long as it is still inside its validity period. That period is counted from the date written on the cheque, so back-dating shortens the time the payee has to bank it.
Stale cheque
A cheque is stale once its validity period has passed. In India, the Reserve Bank of India reduced validity to three months from the cheque date for cheques dated on or after 1 April 2012. In the UAE the Commercial Transactions Law sets a six-month presentation period. Banks there may still pay a cheque after that period, but the holder loses some legal protections. A stale cheque does not cancel the debt. The payee simply needs a fresh cheque.
Cheques issued by the bank
Banker's cheque, manager's cheque or pay order
A manager's cheque (called a banker's cheque or pay order in India, and a cashier's order in some countries) is drawn by the bank on itself. You pay for it up front, so it cannot bounce for lack of funds. That is why it is asked for in property transfers, security deposits and tenders. It differs from a demand draft mainly in where it is payable.
Travellers' cheque
A pre-paid cheque in a fixed amount and currency. You signed it once when you bought it and again when you used it, and it could be refunded if lost. Cards and travel wallets have almost entirely replaced them. Major issuers have stopped selling them, and few banks or shops in India or the Gulf accept them today.
Gift cheque
Some banks have offered gift cheques: pre-paid instruments for a fixed amount, printed in a decorative format and given in place of cash at weddings, festivals or as corporate gifts. They work like a small banker's cheque. Availability varies by bank, and many have replaced them with gift cards.
Other types you will come across
Multicity or at-par cheque
A multicity cheque is payable at par at every branch of the issuing bank, so the payee's bank clears it as a local cheque wherever it is deposited. In August 2012 the RBI told core-banking-enabled banks to issue only payable-at-par/multicity CTS-2010 cheques to eligible customers. As a result, most Indian cheque books today are multicity.
Cancelled cheque
A cancelled cheque has two lines drawn across it and "CANCELLED" written between them. It cannot be used for payment. It is handed over so an employer, lender or insurer can read your name, account number, IFSC and MICR code from it. Write "CANCELLED" clearly and keep a note of the leaf number.
India vs the Gulf: what changes
- Validity. Three months in India. Six months for presentation under UAE law. Other Gulf states set their own periods, so check the rules for your country before relying on an older cheque.
- Post-dated cheques. Used everywhere, but in the Gulf they are the normal way to pay annual rent, which is why many tenants hand over a full year of PDCs at once.
- Bearer cheques. Still common in India for small cash withdrawals. Gulf businesses mostly issue crossed or account payee cheques.
- Bank-issued cheques. In the UAE the manager's cheque is the standard instrument for property and large deposits. In India the demand draft and pay order fill the same role.
Choosing the right type
For almost every business payment, the safe default is an account payee, order cheque, dated the day it is due. Use a bearer or self cheque only when cash is the point. Use a bank-issued cheque when the recipient needs certainty that the money is there.
If you print cheques with ChequeMaster, the crossing and bearer wording are set once per cheque book: you can print "A/C Payee" text, hide or turn off the "Bearer" text and add a "Not Above" amount. You can change any of them on an individual cheque. See ChequeMaster features for the full list.
