What is the difference between a check and a counter check?


What is the difference between a check and a counter check? If you've ever sat down to pay bills only to realize you've run out of checks, you may be relieved to know you can use counter checks. Counter checks are temporary checks printed at your bank that can help you make payments in a pinch.


Who signs the back of a check?

To receive the funds, the payee must sign, or endorse, the back of the check. This signature informs the financial institution that whoever signed the check is the payee and wants to accept the money.


What does MP mean on a check?

For example, personal bank cheques commonly place the characters MP next to the signature line of the check; these characters represent microprint and indicate that the signature line or other check features are actually microprinted characters.


How do banks verify checks?

Banks can verify checks by checking the funds of the account it was sent from. It's worth noting that a bank will not verify your check before it processes it, meaning you may face fees for trying to cash a bad check. The bank checks if there are funds in the account, and if not, the check bounces.