How are checks paid? In two ways: (a) by handing cash to the payee or holder (part of the duties of the paying teller), or (b) by receiving it on deposit for the credit of another. This second method shows how important it may be for the receiving teller, some of whose duties we have already described, to know what checks are good before giving credit therefor to another party, as the law in most jurisdictions considers a check on the depository bank to be paid when that bank has accepted it for deposit. When checks are presented to the paying teller he must determine (1) that the check is genuine, (2) that it has not been raised, (3) that it is not dated ahead of the day on which it is presented, (4) that he knows the person presenting the check (or he must be identified by some one known to the bank) and that all indorsements are in order, (5) that payment has not been stopped on the check, and (6) that the drawer has a sufficient amount on deposit to pay the check. It can easily be seen that the paying teller has an important position, especially when it is remembered that he often has but a few seconds to pass on all these points. In addition to cashing checks, the paying teller is responsible for the vault cash and counter cash, makes up payrolls for the bank and for its customers, handles currency shipments, both new and old currency, as well as mutilated money shipped for redemption, probably certifies checks and has charge of signature records.

Checks Payable To Bearer

Checks made payable to "bearer," "cash" or "currency" are payable to the bearer, and the teller may pay them without identification or indorsement, although it is a good rule to endeavor to secure indorsement in any event. They may be negotiated by delivery and no indorsement is necessary. The drawing of such checks should be discouraged, for it is much safer to make checks payable to the order of some definite person.

Post-Dated Checks

These are checks dated subsequent to the day on which they are issued. For instance, A may draw a check today but date it three days ahead. This is "post-dating" the check. The paying teller must not pay checks dated ahead, for by tomorrow the maker may issue a stop-order and cancel the check, or he might not have enough money on hand to enable the bank to pay it. So if the bank does pay it, it does so at its own risk. Sometimes it is a temptation to a man to date bis check ahead. He owes a bill of $200. He does not have that much in the bank, but thinks he will in a few days. So he dates the check ahead four or five days. Suppose the check gets to the bank before the four or five days are up. The bank refuses to cash it. The man who draws it is "in wrong" with his banker and loses credit. Where a check (or bill or note) is not dated, it will be considered to be dated as of the time it was issued. The paying teller can fill in the date as of the day it is presented, or the person presenting the check may do this.