What does encashing mean?
Encashing means converting a financial instrument or promise of money into cash. A traveller might encash a cheque at a bank, while a company might encash a bond or voucher through a financial institution. The word is most common when someone formally presents a document in order to receive money for it, and it can therefore sound more formal or technical than simply saying cash. Encashing is used in both British and American English, though cash a check is more usual in American speech. The word can also refer to converting prize vouchers, tickets, or other exchangeable documents. Its usefulness lies in distinguishing this specific financial transaction from spending money, depositing money, or merely possessing an asset that could be sold.
verbEncashing is converting a cheque, bond, voucher, or other financial instrument into money, usually by presenting it to a bank or another institution.
- To convert a cheque, bond, voucher, or similar financial instrument into money, especially by presenting it to a bank or other institution.
"She went to the bank to encash a traveller's cheque."
"The bank charges a fee when customers encash foreign currency traveler's cheques."
"Participants were given a short window to encash their prize vouchers before they expired."
Encashment turns paper promises into spendable money.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does encashing come from?
Encashing is the present participle of encash, a verb formed in the 19th century by adding the prefix en- to cash. Cash entered English in the 16th century from French caisse, meaning a box or chest for money; this ultimately derives from Latin capsa, “box,” from capere, “to take.” Related English words such as cashier, cassette, and casket developed through French forms associated with the same Latin root.
Related word forms
How encashing is actually used
Encash is especially associated with British English, although it is understood in American English; American speakers often say cash a check instead.