In payments, what is a check?

In the context of payments, a check is accurately defined as a negotiable paper document for payment. This means that a check serves as a written order from the account holder (the payer) to their bank, directing the bank to pay a specified sum of money to the person or entity named on the check (the payee). Checks can be transferred, endorsed, and cashed, which gives them the characteristic of being negotiable, meaning they can be passed from one party to another.

Checks are a traditional form of payment that do not require any electronic processing for their basic function, even though electronic check processing options exist today. They are used in various transactions, including personal payments, business transactions, and as a method for settling debts.

The other choices do not accurately capture the definition of a check. Digital transfers refer to electronic payments rather than physical documents, debit card transactions indicate a different payment method involving electronic transfers linked to a bank account, and wire transfers denote the direct electronic movement of funds between banks, which again does not involve the use of a check as a physical document.