The History Of The Cheque

Submitted by: Scott Wilkins

Do you think cheques are old-fashioned? You might be right about their origins, but their function now is as important as it was in ancient history and there s a format to match every person s taste.

Cheques pre-date banks by hundreds of years as one of the worlds early financial exchange instruments. The first known record of a variation of the cheques we use today is from the first century BCE, when Ancient Romans are believed to have used an early form of the exchange note, called praescriptiones.

By third century CE, Persian and territories in the Persia Sassanid Empire were using letters of credit called Sakks. The practice of writing Sakks became more widespread in the 9th through 14th centuries, and as such, the form became more standardized.

Businessmen abandoned the earlier exchange notes signifying amounts owed by another, and the debtor s name, for more formal paper cheques surprisingly similar to the cheques we use now. Fragments of 12th century cheques found in the Cairo Geniza state the amount owed, the date, the name of the issuer and a contractual phrase requiring that so and so pay the bearer such and such an amount.

The Knights Templar are believed to have used a chequing system from 1118 to 1307 that was introduced to simplify travel for pilgrims journeying to the Holy Land or through Europe. The pilgrims would exchange funds for drafts, similar to our bank drafts, of their funds at chapter houses along their path and would show the draft to a chapter house further along their journey in order to withdraw their funds.

By the 17th century, the historical practice of using cheques, called draw notes at the time, for domestic and international payment had become widespread. These notes were drawn from official scriveners and bankers in and around Europe. An early handwritten note dating February 16, 1659, was drawn in the City of London for a sum of 400 (about 42,000 today), with the name of the recipient and the signature of the payer both included.

Shortly after, on June 27, 1694, the Court of the Bank of England determined during its first meeting to make official separate types of bank accounts, including a chequing account. By the early 18th century, banks were requiring the use of a special cheque form in order to prevent fraud. These forms were only provided to customers with a credit balance, and printed forms were given to customers in especially good standing at the Bank of England. The name cheque came from check that forms included to avoid fraud, using a security symbol on both the form and the counterfoil.

Today, the history of cheques/checks has evolved into a standardized, yet specialized, practice. Cheques are still one of the primary secure ways to transfer sums of money to a particular recipient. Anti-fraud features have multiplied to ensure the protection of bankers funds, yet no longer require an intrusion on individuals personal style. There is a cheque for every person s taste and needs.

About the Author: Scott Wilkins is a Canadian financial expert. To

buy cheques online

visit Cheque Depot’s website which offers high-quality

laser cheques

.

Source:

isnare.com

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