How to write a check

How to write a check

Learning how to write a check is a skill that can be learned like any other. Here is a breakdown of the 10 steps:

• Step 1: Make sure you have physical checks from your bank. Checks typically draw money from your checking account and are used as a means of payment. If you do not have them, you can place an order with your bank and you will receive them within a few business days.
• Step 2: Make sure you have and are using a black or blue ink pen. There are sections that need to be filled out on the check and permanent ink is best so the check cannot be erased or altered.
• Step 3: Write the current date in the top right corner. Checks have different parts to them. At the top right you will see a section for the date. Write out the current date numerically, e.g. 12/01/2022.
• Step 4: Enter the “Payee” or the person you are paying in the “Payment on behalf of” section. Whether you’re paying an individual or a company, make sure you include their full name or company name with correct spelling. Print out the name instead of writing it in cursive so it’s legible.
• Step 5: Enter the dollar amount numerically next to the dollar sign. You will see a dollar sign ($) on the center right side of the check. Next to this part, enter the payment amount numerically. So, for example, if you’re paying your rent, you can put in $1,350.
• Step 6: Add the payment amount written out. You will see a long line and the word “Dollars” on the right side under the “Pay to the order of” section. In this line, write out the payment amount – this time in words. For example, you would write “One thousand three hundred and fifty.” If the payment amount does not contain cents, add 00/100 to indicate that it is a flat dollar amount. If it contains any cents, such as B. $1350.75, then add 75/100 to the end of the amount written. Make sure the amounts written and the numbers match. It is important to note that in the event of a mismatch, the amount written will be the legal amount that will be used.
• Step 7: Sign your name in cursive on the “Signature” line at the bottom right. This helps in authorizing the transaction.
• Step 8: Add a description in the “Memo” or “For” line in the bottom left corner. This part is not required but can be useful. You can write a note what the check is for, for example, “December 2022 Rent.”
• Step 9: Give or send to the intended recipient. Once you have verified the payment amounts, the spelling of the payee’s name, and confirmed that you signed and dated the check, you can present or mail the check to the intended recipient. This can be a personal delivery or a prepaid postal delivery.
• Step 10: Document the transaction. If you have a check book, you can keep a record of the transaction on your check register. This can be important information such as check number, date and payment amount. While not required, it can help you keep track of what’s going out of your account. Whether you take this step or not, you want to make sure you have enough funds in your account for the check to clear.

Tips on writing and paying with checks

Learning how to write a check is fairly easy; However, there are some best practices that should be considered.

For one thing, you definitely don’t want to use a pencil that can be easily erased. Use a pen instead. Another important point is to ensure that the check is complete and complete the process by authorizing the check with your signature, including your full legal name.

“Many young adults write their names or ask if they need to write their names in cursive. We’ve even seen someone just sign their first name,” said Laura Sterling, vice president of marketing at Georgia’s Own Credit Union.

Make sure you have the full name of the person or company you want to pay. “Avoid cashing checks in ‘cash’ as ​​they can easily be cashed by someone other than the intended target,” adds Sterling.

Some additional things you can do to limit the chances of scammers altering your checks are:

• Draw a line after the amount to avoid spaces
• Write a note in the memo so you know what the payment is for
• Use the current date and not a future date, which is referred to as post-dated

How to endorse a check

Now that you know how to write a check, what do you do when you get a check? The first thing to do is your signature on the back of the check. This is known as endorsement of the check.

“Endorsing a check often authorizes the check—as the intended payee—by signing it and is done on the back of the check. Confirmations can include instructions on how to handle the check, whether cashing or depositing,” explains Rahkim Sabree CFEI®, RFC® and financial coach with decades of banking experience.

You may see a line that says “Support Here” where you should put your signature. There may also be language about not writing anything under the line. When you endorse a check, you confirm that you are the person to whom payment is made.

“Endorsing a check seems pretty easy, but since the younger, digital generation has little to no experience with checks, we’ve seen some recurring patterns. Some young adults signed the entire back of the check horizontally, while some forgot to sign the check at all,” says Sterling. “While it might not seem like a critical step for someone unaccustomed to writing checks, unendorsed checks could be returned.”

There are many different types of endorsements, including:

• Blank note. This refers to the usual way of endorsing a check, by simply signing the back of the check. This can be an easy way to confirm mobile deposits or deposit through your bank’s ATM.
• Restrictive Consent. This refers to a secure confirmation where the recipient states “For deposit only”. For even more security, you can provide the bank account number where it can be deposited, or for mobile deposits, write “mobile deposits only” from your phone. This is an improvement over a blank confirmation as the check could fall into the wrong hands and possibly be cashed. This route has more specific measures that are more restrictive and secure.
• Third Party Verification. This type of verification is not typically recommended and may not be available from all financial institutions. But theoretically, you could take a check you receive and pay someone else – a third party – and certify it by writing “Payment on behalf of” and inserting that person’s name and adding your signature.
• Mobile Check Deposit. If you use your cell phone to deposit a check, your financial institution may require an additional step to endorse the check. You may need to “mobile deposit” or “for [bank’s name] mobile deposit.”
• Business Confirmation. Checks made to a business require a person authorized to sign on behalf of the business to endorse the check. This includes providing the company name, signature and job title when endorsing.
• Confirmation of multiple payees. You may receive a check with two names on it, e.g. B. for an anniversary or wedding present. In this case, one or both parties may need to confirm the verification, and it depends on a one-word difference. “Checks payable to one or more persons separated by the word ‘or’ may be cashed or deposited by either party,” says Sabree. “Checks payable to more than one person separated by the word ‘and’ require both parties to sign the check in the presence of a bank representative or deposit it into an account with both parties’ names on it.”

How to deposit a check

When you receive a check, money will come your way, but you must deposit it first. Follow these steps to deposit a check:

• Confirm the correctness of the check. Confirm that the payment amount is correct, intended for you and from a reputable company. “I had a situation where someone wrote a counterfeit business check as payment for my company’s services,” says Tiffany Grant, MBA, AFC® at Money Talk With Tiff. “Fortunately, I didn’t deposit the check earlier. If you deposit a bad check, the bank will reverse the money, which could spell disaster if you’ve already used some money.”
• Validate the check. Turn over your check, sign it and add “For Deposit Only” for added security.
• Deposit the check in person or by cell phone. You can go to a local bank branch or use your bank’s mobile app to deposit a check into your account. “They can deposit a check at a bank branch, at an ATM, or through their mobile app,” Grant says. “You can usually cash a check at the bank that issued the check. You can find this information on the front of a check you received. Be wary of check cashing agencies as they charge fees to use their services.”

take that away

With the advancement in technology and the variety of payment options, learning how to write a check is becoming increasingly rare. However, it is a good skill to have and can come in handy in a variety of situations such as: B. paying rent or paying a contractor.

But for all your financial savvy, you want to take steps to reduce the chances of fraud, such as: B. Fill in all sections, leave no spaces and add restrictive acknowledgment. Writing a check correctly can help prevent errors or delays.