KIP254
Member
Advantages
1. It is more secure than notes or coins.
2. It is easily portable compared to cash.
3. Cheques are convenient to use when paying large sums of money.
4. It has a counterfoil which can be used as evidence of payment.
5. In case the payee needs the money urgently, he or she can get it from the bank by discounting the cheque.
6. The drawer does not have to go to bank to withdraw money to make payments.
7. They can be used to pay someone else other than the named payee, that is third party.
Disadvantages
1. Discounting a cheque in order to receive money before maturity of the cheque attracts extra charges.
2. It takes time before it is cleared by the bank.
3. There are charges for using a cheque.
4. Cheques may be dishonoured.
5. Requires the payee to go to the bank.
6. Some people refuse cheque payments for fear of being dishonoured.
7. May require the payee to have a bank account.
1. It is more secure than notes or coins.
2. It is easily portable compared to cash.
3. Cheques are convenient to use when paying large sums of money.
4. It has a counterfoil which can be used as evidence of payment.
5. In case the payee needs the money urgently, he or she can get it from the bank by discounting the cheque.
6. The drawer does not have to go to bank to withdraw money to make payments.
7. They can be used to pay someone else other than the named payee, that is third party.
Disadvantages
1. Discounting a cheque in order to receive money before maturity of the cheque attracts extra charges.
2. It takes time before it is cleared by the bank.
3. There are charges for using a cheque.
4. Cheques may be dishonoured.
5. Requires the payee to go to the bank.
6. Some people refuse cheque payments for fear of being dishonoured.
7. May require the payee to have a bank account.