Checks in Argentina: A Comprehensive Guide
Checks in Argentina
Common Check
A common check is a payment order against a bank where the drawer has funds deposited. It includes:
- Amount in numbers
- Date of issue
- Name of the payee or bearer
- Amount in words
- Signature
Deferred Payment Check
A deferred payment check is a payment order with a future date. It requires registration with an approved institution. It includes:
- Amount in numbers
- Date of issue
- Deferral period (30-360 days)
- Name of the payee or bearer
- Amount in words
- Signatures
Nominative Certificate of Registered Check (Nom Cert Reg.)
A debt issued by a bank for a deferred payment check. The bank guarantees payment at maturity. It includes:
- Date of issue
- Amount in pesos or dollars
- Name of the depositor
- Payment date
- Bank signatures
Crossed Check
A check with two parallel lines on the front, indicating it must be deposited into a bank account. It can be general or special (specific bank).
For Further Credit to Account
A check that can only be deposited into an account, not cashed.
For Q-Served
A check that can only be cashed through a bank account to prevent theft.
Accused Check
A check with a statement on the back indicating the purpose of the payment.
Certified Check
A common check certified by the bank, guaranteeing payment within five days.
Order Not To
A check with the clause “not to order,” making it non-transferable by endorsement.
Check-Backed
Both common and deferred payment checks can be backed by a guarantee from a third party.
Objectives of the Law
The check law aims to:
- Reduce fraud
- Improve the efficiency of the check system
- Increase certainty in credit transactions
Credit Standards
The law aims to:
- Support small and medium-sized enterprises (SMEs)
- Promote compliance with obligations
- Reduce high tax rates
How Checks are Charged
- Directly with the bank
- Deposited with a bank for collection
Clearing Delays
- 24 hours: Banks in the same location
- 48 hours: Banks in Federal Capital and Greater Buenos Aires
- 72 hours: Banks in different cities
Transmissibility
- By delivery (bearer checks)
- By endorsement
- By assignment (checks with “not to order” clause)
Fines
- 4%: Rejection of common or deferred payment checks without funds
- 2%: Rejection of checks for formal defects
Clearing Mail
The law promotes the replacement of clearinghouses with an electronic clearing system for faster and more efficient check processing.
FAQ
Can a check be paid in part? Yes, as permitted by Article 31 of the Act.
What currency can checks be made in? The currency of the account (pesos or dollars).
Is the bank responsible for payment of a forged check? Only if the forgery is obvious or if key requirements are missing.
When do checks expire? 30 days from the drawing date for domestic checks, 60 days for checks drawn abroad.
How can enforcement jurisdiction be handled for a deferred payment check? In the court of the domicile of the depository institution.
Destination of Fines
Fines collected will finance programs for people with disabilities.
Legislative Background
Law 24,452, enacted in 1995, regulates checks in Argentina.