When a bank issues a check on its own account to a customer, it is called a bank check. Such checks are issued for payment to a third party and are also variously called as cashier's check or treasurer's check. Such checks are generally treated by the law in the same manner as ordinary checks. Many people regard bank checks as equivalent to cash, which it is not. In certain instances a bank check might not be paid. A bank check can be used to purchase large items such as a car.

Bank check payment is often considered an alternative to bank wire transfer. It is ideal for commercial payments between companies. Such checks also find extensive use for the payment of different fees and services. Modern banks issue bank checks even without the customer having an account with the respective bank. The check issue procedure is very simple and takes only a small time to process. Banks also send the issued bank check along with respective attached documents to a check beneficiaries home or business address.

Bank checks are perhaps the most economic way of international money transfer. It is especially convenient when small amounts of money are transferred because it is not necessary to make an extra money transfer. Modern banks sell and collect checks of other banks also, the value of which is denominated in convertible currencies.

Some advantages of bank checks include settlements with foreign partners. Bank checks make it possible to make settlements for products and services with foreign partners, meaning subscription can be made for books or publications, lotteries, goods and education at schools abroad. Even cash gifts can be sent through this way. A bank check is also a very convenient way of settlement if there is little information about beneficiary of the check.