Cheque vs. Warrant — What's the Difference?
By Maham Liaqat & Fiza Rafique — Updated on May 16, 2024
A cheque is a written order directing a bank to pay a specific amount from an account, while a warrant is a document authorizing the payment or transfer of funds, often used by governments or corporations.
Difference Between Cheque and Warrant
Table of Contents
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Key Differences
A cheque is a financial instrument written by an account holder instructing their bank to pay a specified amount to a named party. It is commonly used for personal and business transactions, offering a secure method to transfer money. A warrant, on the other hand, is a financial document that authorizes the payment or transfer of funds, often issued by government entities or large corporations. Warrants can be used for various purposes, including authorizing payments for services, salaries, or other obligations.
Cheques are drawn directly from the account holder's bank account, meaning funds are immediately debited upon presentation and clearance. Warrants, however, are often backed by the issuing entity’s funds and may require additional steps for verification and authorization before payment is made.
In everyday use, cheques are familiar tools for individuals and businesses to manage payments without needing cash. Warrants are typically used in more formal or institutional contexts, such as government disbursements or corporate financial management.
Cheques can bounce if there are insufficient funds in the account, leading to penalties and fees. Warrants, being official authorizations, generally ensure that funds are available, although they may also be subject to certain conditions or approvals before being honored.
Comparison Chart
Definition
Written order to a bank to pay funds
Authorization for payment or fund transfer
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Common Issuers
Individuals, businesses
Governments, corporations
Direct Funds Source
Account holder's bank account
Issuing entity’s funds
Usage Context
Personal, business transactions
Government disbursements, corporate payments
Risk of Non-payment
Can bounce if insufficient funds
Generally secure, subject to authorization
Compare with Definitions
Cheque
A written order directing a bank to pay money.
She wrote a cheque to pay for her groceries.
Warrant
A document authorizing payment or transfer of funds.
The government issued a warrant for the contractor’s payment.
Cheque
A document used to transfer funds from one account to another.
He received a cheque for his freelance work.
Warrant
An instrument for specific financial transactions.
Employees received salary warrants at the end of the month.
Cheque
A negotiable instrument for payment.
The landlord asked for a cheque for the rent.
Warrant
A formal order for the payment of money.
The court issued a warrant for the restitution payment.
Cheque
A method of payment linked to a bank account.
Cheques are still commonly used for large transactions.
Warrant
A document issued by a legal or government official authorizing the police or another body to make an arrest, search premises, or carry out some other action relating to the administration of justice
An extradition warrant
Magistrates issued a warrant for his arrest
Cheque
A cheque, or check (American English; see spelling differences), is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing the cheque, known as the drawer, has a transaction banking account (often called a current, cheque, chequing or checking account) where their money is held.
Warrant
Justification or authority for an action, belief, or feeling
There is no warrant for this assumption
Cheque
An order to a bank to pay a stated sum from the drawer's account, written on a specially printed form
They presented him with a cheque for £4,000
Fees are payable by cheque or postal order
Warrant
An official certificate of appointment issued to an officer of lower rank than a commissioned officer.
Cheque
Variant of check.
Warrant
Justify or necessitate (a course of action)
The employees feel that industrial action is warranted
Cheque
A draft directing a bank to pay money to a named person or entity.
I was not carrying cash, so I wrote a cheque for the amount.
Sometimes abbreviations are used (which would be explained on the statement) and only the last three figures of the cheque number may be given. ‘Sundries’ are cash or cheques paid into the account.
You can avoid dealing with paper cheques — written or printed — by paying your bills online.
The daily cheque clearings began around 1770 when bank clerks met at the Five Bells (a tavern in Lombard Street in the City of London) to exchange all their cheques in one place and settle the balances in cash.
Warrant
Officially affirm or guarantee
The vendor warrants the accuracy of the report
Cheque
Obsolete form of chequy
Warrant
(Law) A judicial writ authorizing the search or seizure of property, arrest of a person, or the execution of a legal judgment.
Cheque
See Check.
Warrant
A voucher authorizing payment or receipt of money.
Cheque
A written order directing a bank to pay money;
He paid all his bills by check
Warrant
An option to buy stock at a specified price from an issuing company.
Cheque
Withdraw money by writing a check
Warrant
Justification for an action or a belief; grounds
"The difficulty of predicting the future is no warrant to ignore it" (Brian Hayes).
Cheque
A form of non-cash payment.
The charity accepted donations via cheques.
Warrant
Something that provides assurance or confirmation; a guarantee or proof
"The kind of uncertainties and ambiguities ... which may damage [his] essays ... are often a warrant of authenticity in [his] fiction" (John Edward Hardy).
Warrant
Authorization or certification; sanction, as given by a superior.
Warrant
A warrant officer.
Warrant
A certificate of appointment given to a warrant officer.
Warrant
To provide adequate grounds for; justify or require
What could he have done that would warrant such a punishment?.
Warrant
To guarantee (a product).
Warrant
To guarantee (a purchaser) indemnification against damage or loss.
Warrant
(Law) To guarantee clear title to (real property).
Warrant
Authorization or certification; a sanction, as given by a superior.
Warrant
(countable) Something that provides assurance or confirmation; a guarantee or proof.
A warrant of authenticity; a warrant for success
Warrant
(countable) An order that serves as authorization; especially a voucher authorizing payment or receipt of money.
Warrant
An option, usually issued together with another security and with a term at issue greater than a year, to buy other securities of the issuer.
Warrant
A judicial writ authorizing an officer to make a search, seizure, or arrest, or to execute a judgment.
An arrest warrant issued by the court
Warrant
(countable) A certificate of appointment given to a warrant officer.
Warrant
A document certifying that a motor vehicle meets certain standards of mechanical soundness and safety; a warrant of fitness.
Warrant
A defender, a protector.
Warrant
Underclay in a coal mine.
Warren earth
Warrant
To protect, keep safe (from danger).
Warrant
To give (someone) an assurance or guarantee (of something); also, with a double object: to guarantee (someone something).
Warrant
(transitive) To guarantee (something) to be (of a specified quality, value, etc.).
Warrant
(transitive) To guarantee as being true; (colloquially) to believe strongly.
That tree is going to fall, I’ll warrant.
Warrant
(transitive) To authorize; to give (someone) sanction or warrant (to do something).
I am warranted to search these premises fully.
Warrant
(transitive) To justify; to give grounds for.
Circumstances arose that warranted the use of lethal force.
Warrant
That which warrants or authorizes; a commission giving authority, or justifying the doing of anything; an act, instrument, or obligation, by which one person authorizes another to do something which he has not otherwise a right to do; an act or instrument investing one with a right or authority, and thus securing him from loss or damage; commission; authority.
Warrant
A writing which authorizes a person to receive money or other thing.
Warrant
That which vouches or insures for anything; guaranty; security.
I give thee warrant of thy place.
His worth is warrant for his welcome hither.
Warrant
A precept issued by a magistrate authorizing an officer to make an arrest, a seizure, or a search, or do other acts incident to the administration of justice.
Warrant
That which attests or proves; a voucher.
Warrant
An official certificate of appointment issued to an officer of lower rank than a commissioned officer. See Warrant officer, below.
Warrant
Right; legality; allowance.
Warrant
To make secure; to give assurance against harm; to guarantee safety to; to give authority or power to do, or forbear to do, anything by which the person authorized is secured, or saved harmless, from any loss or damage by his action.
That show I first my body to warrant.
I'll warrant him from drowning.
In a placeLess warranted than this, or less secure,I can not be.
Warrant
To support by authority or proof; to justify; to maintain; to sanction; as, reason warrants it.
True fortitude is seen in great exploits,That justice warrants, and that wisdom guides.
How little while it is since he went forth out of his study, - chewing a Hebrew text of Scripture in his mouth, I warrant.
Warrant
To give a warrant or warranty to; to assure as if by giving a warrant to.
[My neck is] as smooth as silk, I warrant ye.
Warrant
To secure to, as a grantee, an estate granted; to assure.
Warrant
A writ from a court commanding police to perform specified acts
Warrant
A type of security issued by a corporation (usually together with a bond or preferred stock) that gives the holder the right to purchase a certain amount of common stock at a stated price;
As a sweetener they offered warrants along with the fixed-income securities
Warrant
Formal and explicit approval;
A Democrat usually gets the union's endorsement
Warrant
A written assurance that some product or service will be provided or will meet certain specifications
Warrant
Show to be reasonable or provide adequate ground for;
The emergency does not warrant all of us buying guns
The end justifies the means
Warrant
Stand behind and guarantee the quality, accuracy, or condition of;
The dealer warrants all the cars he sells
I warrant this information
Warrant
An official authorization for financial disbursement.
The warrant ensured the funds were allocated for the project.
Warrant
A certificate that entitles the holder to receive payment.
Shareholders received warrants as part of the company's restructuring.
Common Curiosities
Who typically issues cheques?
Cheques are typically issued by individuals or businesses.
What happens if there are insufficient funds for a cheque?
If there are insufficient funds, the cheque can bounce, resulting in penalties and fees.
What is a cheque?
A cheque is a written order directing a bank to pay a specified amount from an account holder’s account to another party.
What is a warrant?
A warrant is a document authorizing the payment or transfer of funds, often issued by governments or corporations.
Who typically issues warrants?
Warrants are commonly issued by government entities or large corporations.
In what context are warrants primarily used?
Warrants are typically used in formal contexts like government disbursements or corporate financial transactions.
Can cheques be used for large transactions?
Yes, cheques are often used for large transactions to provide a secure method of payment.
Is a warrant backed by a specific account?
A warrant is typically backed by the issuing entity's funds and may require authorization.
Do warrants require additional steps for payment?
Yes, warrants often require verification and authorization steps before payment is made.
Are warrants subject to the same risk of bouncing as cheques?
Warrants generally ensure funds are available, but they may still require authorization and verification.
What is the primary function of a warrant?
The primary function of a warrant is to authorize the payment or transfer of funds for specific purposes.
Can cheques be used for everyday transactions?
Yes, cheques are often used for personal and business transactions such as paying bills or salaries.
What is the primary function of a cheque?
The primary function of a cheque is to transfer funds from one account to another as a method of payment.
Is a cheque linked directly to a bank account?
Yes, a cheque is directly linked to the account holder’s bank account.
What could cause a warrant to be delayed or denied?
A warrant could be delayed or denied if there are issues with authorization or verification processes.
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Written by
Maham Liaqat
Co-written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
