Can You Write a Check Out to Cash?

A check is a financial instrument directing a bank to pay a specified sum of money from an account to a designated recipient. Writing a check payable to “Cash” allows the funds to be accessed by whoever possesses the check. This practice has unique implications for fund access and security.

How to Write a Check to Cash

To write a check payable to “Cash,” fill in the current date in the upper right-hand corner. On the “Pay to the order of” line, write “Cash.” This makes the check payable to anyone who presents it to the bank.

Next, write the numerical amount in the box next to the dollar sign. Below this, write out the same amount in words on the long line, ensuring it matches the numerical value precisely. Finally, sign your name in the bottom right corner to authorize payment. A check completed this way becomes a bearer instrument.

Characteristics of a Check Written to Cash

A check made out to “Cash” is a bearer instrument, meaning it is legally payable to anyone who possesses it. This implies an inherent lack of security, as ownership is determined by possession. If such a check is lost or stolen, any person who finds or takes it could potentially cash it, making the original drawer vulnerable to financial loss.

While banks often have internal policies to request identification for any check presented for payment, they are not legally obligated to verify the identity of the person presenting a bearer check in the same way they would for a check written to a specific individual. This contrasts with checks made out to a named individual or entity, which require the payee’s endorsement and often identity verification, offering a higher level of security and traceability for the funds.

Alternative Methods for Payments

For payments, several alternatives offer enhanced security and traceability compared to a check written to “Cash.” Writing a check directly to a specific person or entity is the most common and secure method. This ensures only the named payee can deposit or cash the check, providing a clear audit trail and reducing unauthorized access to funds.

Electronic transfers are another convenient and secure option for sending money. Services like bank transfers or popular online payment applications such as Zelle, Venmo, and PayPal, facilitate quick digital transactions. These platforms typically link to bank accounts or debit cards and offer varying degrees of buyer/seller protection, along with digital records.

Money orders provide a reliable way to send guaranteed payments, often used when a personal check is not accepted. They can be purchased at financial institutions or postal service locations and are prepaid, ensuring funds are available. Money orders also offer a receipt for tracking the payment, adding a layer of security.

For larger transactions or when guaranteed funds are paramount, a cashier’s check is a robust alternative. These checks are drawn on the bank’s own funds, making them a secure form of payment widely accepted for significant purchases, such as real estate or vehicles.