Meaning & use

encashment

noun·Advanced

Last updated

UK/ɪnˈkæʃmənt/
US/ɪnˈkæʃmənt/

Meaning

  1. noununcountable

    The act of exchanging a cheque, voucher, or similar financial document for cash.

    Grammar: Used as an uncountable noun: the encashment of a cheque. It rarely takes a plural.

    Patterns

    • encashment of a cheque
    • encashment of a voucher

    The encashment of the cheque took three working days.

    Please allow up to five days for the encashment of your voucher.

    The bank charged a small fee for the encashment of the traveler's cheque.

Common combinations

encashment of a cheque
The encashment of a cheque usually requires identification.
encashment of a voucher
The encashment of a voucher can be done at any branch.
encashment facility
The company offers an encashment facility for unused leave.
encashment charges
Encashment charges are deducted from the final amount.

Synonyms and how they differ

cashing
Cashing is the everyday term; encashment sounds more formal and technical.
redemption
Redemption is used for bonds and investments; encashment is more common for cheques and vouchers.

Word family

encash verb
To exchange a cheque or voucher for cash.
cash verb
The everyday verb meaning to exchange a cheque for money.

Commonly confused: encashment or encasement?

encashment vs encasement

Encasement means putting something in a case or covering; encashment means converting a document into cash.

Practice

The bank processed the ______ of the cheque within two days.

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