A nominative check is one that indicates the beneficiary's data. Unlike a bearer document, it cannot be cashed by anyone even if they have it in their custody.
Sometimes the nominative check is endorsable to a third party who can use it. To do this, you must include the annotation "to order". However, if that same entry appears but crossed out, no transfer is admissible and only the original recipient can approach the bank. Likewise, if the indication "not to order" is entered.
Characteristics of the nominative check
Among the characteristics of the nominative check, the following stand out:
- It bears the words "pay yourself", followed by the name of the owner.
- It offers more security from the beneficiary's point of view in the event of loss or theft. This is because only whoever is named in the document, or who has received the endorsement by means of a signature, can charge.
- Sometimes money order stubs already have the words "bearer" printed on them. Then, said writing must be crossed out so that the check is nominative.
- If the document has two diagonal lines drawn on it, it is a crossed check. Ie the deposit account is only feasible but not paid in cash over the counter.