What Is a Crossed Check?

A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. This double-line notation signifies that the check may only be deposited directly into a bank account. Such checks cannot be immediately cashed by a bank or by any other financial institution.

How a Crossed Check Works

Crossed checks are predominantly used in Mexico, Australia, and several European and Asian countries. They signal specific instructions to a financial institution regarding how the funds may be handled. Crossed checks most commonly ensure that a bank strictly deposits the funds into an existing bank account.

Recipient banks are forbidden from immediately cashing these checks upon initial receipt. This provides a level of security to the payer because it requires that the funds be handled through a collecting banker. The precise formatting can vary between nations, but two parallel lines are the most frequently used symbols. These lines are sometimes paired with the words "& Co." or "not negotiable."

The phrase "account payee" may also be written on the check in rare cases, as an alternative method of conveying the aforementioned cashing instructions.

Crossed Check vs. Uncrossing a Check

The payee can't uncross it after a check has been crossed. Crossed checks are also considered non-transferable. They can't be signed over to a third party. The only action permitted is for the payee to deposit the check in an account that the payee holds in their name. Although the payee can't uncross a check, the payer can do so by writing "Crossing Canceled" across the front of the check. But this activity is generally discouraged because it eliminates the protection the payer originally set in place.

Special Considerations

It can be deemed as a breach of contract between the institution and the customer who wrote the check if a receiving bank should fail to comply with the crossing. The bank may be held responsible for any associated losses if the payee didn't truly have the funds available to cover cashing the check,

An open check is also referred to as a bearer check and it describes any check that isn't crossed. Such checks can be cashed at the teller counter with the funds being provided directly to the payee.

The Bottom Line

You're unlikely to come upon a crossed check in the United States because they're generally only used in European and Asian countries, as well as Mexico and Australia. But you may have to deal with one if you hold a foreign bank account. Be prepared to deposit the check rather than cash it and wait a period of time before the check clears so you can access the money.