Can You Make a Mistake on a Check?
Avoid common check writing mistakes. Understand the impact of errors and how to effectively manage them for secure transactions.
Checks remain a recognized method for financial transactions, despite the rise of digital payment systems. The process of writing a check involves several distinct fields that require accurate completion. While seemingly straightforward, errors can easily occur during this manual process, potentially leading to complications for both the check writer and the recipient.
Common Errors on Checks
Common errors include incorrect dates, such as postdating or writing the wrong year. Misspellings or incorrect legal entity names for the payee can lead to processing delays. Discrepancies between the numerical and written-out amounts are also problematic, as banks typically rely on the written amount if a conflict exists.
A missing or illegible signature can invalidate a check, as it serves as authorization for the transaction. Errors in the optional memo line, while less critical, can still cause confusion regarding the payment’s purpose. Incorrect account or routing numbers on printed checks can prevent funds from being directed to the proper destination.
Impact of Check Errors
Checks with errors, if presented for payment, can lead to undesirable outcomes. Banks often reject or return checks that are not properly drawn or have inconsistencies. This rejection can cause significant delays in payment processing, impacting the recipient’s access to funds.
The check writer may incur fees, such as insufficient funds (NSF) or overdraft charges, if the error leads to improper processing or an account overdraft. Conversely, the recipient might face returned item fees. Ultimately, an error can invalidate a check, meaning the payment will not be completed, necessitating a new check and further delays.
Addressing Errors Before Use
If an error is identified before a check is given to the payee or bank, corrective action can prevent complications. For significant errors, such as a wrong amount or payee, the safest action is to void the check. To void a check, write “VOID” in large letters across the front using a blue or black pen, ensuring it covers most of the check but leaves account and routing numbers visible for record-keeping. Record the voided check’s number in a check register to maintain accurate financial records.
Minor corrections, like a single digit error in the date, can sometimes be made by crossing out the mistake, writing the correction, and initialing it. However, this practice carries risk, as banks may still reject altered checks. For any substantial mistake, voiding the check and writing a new one is the most reliable approach.
Addressing Errors After Use
If a check with an error is already with the payee or in circulation, a stop payment order is the primary action available. A stop payment is a formal request to a bank to prevent a check from processing and funds from being debited. This action is appropriate if the check has an incorrect amount, is made out to the wrong payee, or is lost or stolen.
To initiate a stop payment, contact your bank promptly, providing details such as the check number, amount, payee’s name, and date written. Banks typically charge a fee for this service, ranging from $20 to $35, though some accounts may offer waivers. Oral requests may be valid for 14 days, while written requests generally remain in effect for up to six months, with some banks offering longer durations.
Act quickly, as a stop payment cannot be executed if the check has already cleared the account. After initiating a stop payment, contact the recipient to inform them of the error and arrange for a correct payment.