Check Accounts
Checks have largely replaced the use of cash in the settlement of accounts between people and businesses. Therefore, checks are commonly referred to as cash in businesses. To use checks, you need to open a checking account.
A person or a business that opens a checking account with a bank and conducts regular banking transactions is called a depositor.
A check is a written order from a depositor. The order requests the bank to pay the amount stated on the check to the person or to the business whose name is written on the check.
A depositor needs to first open a checking account with the bank, and ensure that there are sufficient funds before issuing a valid check.