Paycheck – this term in the sphere of Banking Law details a specific payment instrument, issued by the payer towards the payee, as a valid remuneration for some performed job, or towards the seller for purchased item or service. The payee has to present the issued paycheck at the bank, which cashes the sum listed on the instrument, from the bank account of the payer directly into the bank account of the payee. This is why the paycheck is considered as a valid order to the bank to perform the above detailed money transfer. It should be differed than check advance loans or cash advance loans, which represent only small funding advanced loans with the role to cover the expenses of the borrower until the next payment day. The difference between the paycheck and the payment order is that the payer signs a payment order in the bank and presented it directly to the bank; on the other hand, the paycheck is usually issued in advance, and handled directly to the beneficiary, who then handles it to the bank for receipt of payment.

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