Can You Fold Checks? What to Know Before You Do
Unsure about folding checks? Understand how to protect your financial documents to ensure smooth processing and avoid payment delays.
Many people wonder if folding a check will invalidate it, especially when trying to fit it into a wallet or an envelope. Understanding how much folding is acceptable is important for smooth processing. Minor, careful folding is permissible, but excessive handling can lead to issues. This guide outlines sensitive check areas and how to manage them to avoid problems.
The Critical Parts of a Check
Financial institutions rely on specific information on a check for accurate and automated processing. The Magnetic Ink Character Recognition (MICR) line, located at the bottom of the check, contains the routing number, account number, and check number, all printed with special magnetic ink. This line is read by machines, making its integrity important for efficient processing.
Other important elements include the payee line, and the legal and courtesy amounts, which display the payment value in both words and numbers. Both amounts must match, and any discrepancy can cause a check to be rejected. The signature line, where the check’s issuer authorizes the payment, confirms the transaction’s legitimacy.
How Folding Affects Processing
Light, careful folding of a check does not invalidate it. However, the impact on processing depends directly on where the folds or damage occur. Financial institutions may refuse to process a damaged check, leading to delays or penalties.
Damage to the MICR line is a common reason for rejection, as sharp creases, tears, or excessive crumpling across this area can render it unreadable by scanning equipment. Similarly, folds that obscure or tear through the payee’s name, the amount, or the signature can make the check unprocessable. Severe wrinkling or crumpling can make the entire document difficult to scan or handle, potentially causing the bank to question its authenticity.
Best Practices for Check Handling
Protecting the MICR line is important, so always ensure this area remains free from damage, even during minimal folding. Storing or transporting checks flat is advisable to minimize the risk of accidental damage, particularly to sensitive areas. When mailing a check, using sturdy envelopes helps protect it from bending or tearing during transit.
Avoid writing or marking on areas outside the designated fields, especially near the MICR line, as this can interfere with processing. Handling checks with clean hands helps prevent smudges or water damage that could obscure details. As a modern alternative, mobile deposit allows checks to be deposited by taking a picture, circumventing many physical handling concerns. Even with mobile deposit, it is recommended to retain the physical check in a secure location until the deposit clears, then destroy it securely.