A good for payment cheque is a type of cheque that has been verified by the bank and is guaranteed to be honored when presented for payment. This means that the bank has already set aside the necessary funds to cover the amount of the cheque, and the person or business who receives the cheque can be assured that it will be paid.
Good for payment cheques are often used in large financial transactions, such as real estate purchases or business acquisitions, where the amount of the transaction is too large to be paid in cash. They can also be used for other types of transactions, such as paying bills or making purchases, when the recipient requires assurance that the cheque will be honored.
To obtain a good for payment cheque, the issuer of the cheque must have sufficient funds in their account to cover the amount of the cheque. The cheque must then be presented to the bank, which will verify the funds and issue a guarantee that the cheque is good for payment. It’s important to note that there may be fees associated with obtaining a good for payment cheque, and these fees can vary depending on the bank and the amount of the cheque.
