Difference Between Bearer Cheque and Order Cheque
By Laura Lee - February 25, 2023

Cheques can be classified into two categories when considering the individual allowed to cash them in. A bearer check is payable to the person who carries it and delivers it to the bank for payment. In this method, the bank is released from obligation by providing timely payment to the bearer. However, there is an exception when converting a cheque from bearer to order.

Chart Summary
  1. The bearer cashes it
It can only be cashed by the person whose name is on the cheque
Close Up of a Fountain Pen Writing on a Check

Getty images/ DigitalVision/Pete Gardner


A bearer check, like cash, is valued. If you misplaced it, someone else might use it. No endorsement on a bearer’s check can make the cheque payable to anybody other than the holder. The paying cashier does not need to take many steps to determine the valid owner of the payee. Nonetheless, the bank does not need a bearer’s identity, but if the sum is significant, the bank may require identification.

An order check has the words ‘or order’ following the payee’s name or the term ‘bearer’ wiped out. The bank pays the individual whose name appears on the check-in of these cases. This means the bank is only obligated to pay the money to the payee or ordered person and not to anybody else. As a result, the payee can either get the funds against the check or allow someone else to receive the amount in writing. It’s worth noting that striking out the phrase “bearer” turns the cheque into an order one.

Bearer Cheque vs. Order Cheque

A bearer cheque can be cashed by anybody who presents it at the bank’s payment counter. On the other hand, an order cheque is payable to the payee or any other person the payee allows. Simple delivery can be used to transfer bearer cheques. On the other hand, the transfer of ownership of the order check is only feasible with proper endorsement.
For a bearer cheque, the recipient’s signature on the reverse of the cheque serves as the receipt. In the event of an order check, the payee’s signature serves merely as an endorsement.