What Is a Counter Check? Meaning and Alternatives

Last updated on September 21st, 2024 at 10:28 am

The term check is common though not everyone using a bank or other financial institution knows “what is a counter check”. People get counter checks to fill in their account information for a purpose say making payments.

They are also known as starter checks since they are mostly used when one opens a new checking account with a bank. Compared to personal checks, they can immediately be printed and then put to use and serve almost the same purpose.

And in case you want to use a counter check, it goes at a fee despite the downside that may likely be rejected in making payments. However, where one needs money fast can’t go through the hassles of requesting standard checks which take time to be availed yet there’re other quick means.

But counter checks are of a type that you can instantly access in less than an hour. Standards checks are sometimes delayed that’s why counter checks can surely be an option in case you want to make payments, withdrawals, and deposits.

Unfortunately, there are financial implications attached to counter checks in that at times could disappoint you due to the likely hood of being rejected by merchants in relation to fraud issues. Therefore, these checks are normally meant for temporary use as you wait for a regular one.

 What Is a Counter Check by Definition?

A blank form availed by the financial institution where there’re blank spaces that require to be filled with account details is known as a counter check. And most new clients that have not yet gotten pre-printed checks but would want to transact to clear costs are given counter checks instead.

Again, they are not very much trusted by merchants and could be rejected which it’s not the case with regular checks. What are counter cheques used for, right? Counter checks are also known as starter checks and can be used to access your account say making withdrawals.

How Can One Get a Counter Check?

If you want a counter check your bank or financial institution is ready to provide it. I usually get them printed by a teller at the bank and the same you should do when in need.

Your bank would request you to present your identity card or some other legal document to get the counter-check printed.

But this means in case you don’t avail the required documents in time you have to try other means of survival with no money until you present the documents. These checks only apply to financial institutions with physical locations, not online only-banks.

Charges for counter-checks, right?  They are normally given out by banks at a cost that is $2 to $3 for every page of three checks.

Therefore, it’s also better to contact the bank when you’re not clear about the process and cost to do things the right way.

How To Write a Counter Check

Let’s look at the process of writing a counter check though it’s not any different from that of a regular check. And there are about 6 ways it is effectively done for use.

• Put the date in the upper right corner
• The name of the payee should be included on a line next to “pay to the order of”
• The amount in dollars for the check should be listed in the box to the right.
• Under the payee line, the amount in dollars should be written in words.
• You need to include reference information on the memo line as you would wish.
• Finally, what’s required of you is to get to the bottom right corner to sign the check.

Am not yet done, you can make use of the upper left corner too, and write there your personal information. It’s really important though some banks attach such details on the counter check.

Some of the details are your name, contact, address, and others as would be requested.

When Do I Need to Use a Counter Check?

There are different times in which you would need to use counter checks in case you’re an account holder in the bank.

• Sometimes you may want to make instant payments yet your personal checks are used up hence making use of the accessible.
• Counter checks can also be used when you’ve just opened up an account and you’re not yet availed with printed checks.

Despite the fact that they can easily be accessed, counter checks are not very much trusted compared to a standard check.

Yes, standard checks can’t easily be rejected since they contain most of the required information which can’t be found on counter checks. In order to use it, you need to confirm with the recipient whether they accept a counter-check before you write it.

Is It Possible Making Payments for Goods and Services Using a Counter Check?

Though most people prefer regular checks to counter checks, they can also be used to make payments. Counter checks are meant to temporarily serve and present limited authentic details of the account holder.

With regular checks, all the required information that identifies the writer is available which proves its authenticity.

Is a Counter Check the Same as a Cashier’s Check?

Some people confuse counter checks with cashier’s checks yet they are totally different. Though, a cashier’s check can also be availed by the bank immediately when you want to use it.

Cashier’s checks possess most of the required information and are meant for guaranteed funds, which is not the case with a counter-check.

What Are the Pros and Cons of Counter Checks?

Counter checks are really helpful in case you’ve just gotten an account yet you want to access it or make payments. However, there’re also challenges associated with using counter checks before getting regular checks.

Pros

• Instant Access

In case you’re in need of a check with immediate effect, a counter-check can easily be gotten. You can’t fail to access your funds since printouts can be made in a very short while and then delivered to the cashier’s booth where you can access them.

• Work in place of personal checks

You don’t have to wait till you get a personal check in order to use your account hence counter checks can be used to work things out fast.

Cons

• There’s limited personal information pre-printed on counter checks.
• Charges paid keep on fluctuating
• Most likely to be rejected by merchants

 Are Counter Checks Temporary and How Long Do They Last?

Counter checks are gotten by the account holder to be temporarily used till when he or she gets official checks. And these checks are given out at a cost by the bank to a client.

But when regular checks are issued to the client counter checks can be gotten rid of to only use the most authentic type. There’s no reason as to why you use a counter check which might be rejected yet you have a standard check.

Alternatives To Counter Checks

There’re alternatives to counter checks in case you’re having issues all the time when dealing with merchants and other institutions.

Accessing some of these other alternatives will also cost you. Let’s now briefly get through other options that work.

Certified Checks

A certified check is gotten from the bank or financial institution to confirm funds in a personal account. Merchants are then assured that really there’re funds available to cover a certain transaction than being bounced.

Expect to incur some charges in case you want to use a certified check.

Money Order

Also here, funds are guaranteed to a payee, which is not the case with a counter check. Money orders of up to $1000 can be gotten from banks, credit unions, post offices,s and other places.

And payments for money orders can either be made using your debit or cash. It then still holds that you incur a charge in order to access the financial instrument.

However, retail places charge less compared to banks and credit unions.

Cashier’s Check

This is gotten directly from the bank or credit union and it guarantees funds available in the bank account.

Cashier’s checks are very secure and keep clients’ account information safe. They are normally used by businesses dealing with big transactions and are issued at a cost.

FAQs

• Can I make payments with a counter-check?

Yes, it’s possible to make payments with a counter check though not all merchants accept them. They are not numbered and are for temporary use that’s why most businesses reject counter-check payments.

• How long do counter checks last?

A counter check takes about six months before it expires

• What differentiates a counter-check and a personal check?

A personal check contains more information pre-printed on it which makes it more authentic whereas a counter has limited information on it.

Closing

Whether you’ve run out of standard checks or just gotten a checking account in the bank you can use a counter check.

Compared to personal checks, you can instantly access counter checks for use through the bank teller. And you’ll have to incur some charges as stated by the service provider say $2 to $3 on average.

Though they are meant to serve in place of personal checks, some merchants don’t accept them since they are not that authentic.

But in case you’re finding challenges using counter checks there’re other alternatives that work better or maybe first consult the recipient whether it’s acceptable before writing it.