Can You Write Twenty Five Hundred on a Check?
Learn to accurately complete checks, ensuring monetary amounts are correctly entered for secure and valid financial transactions.
A check instructs a bank to withdraw money from one account and pay it to another party. Checks remain a common method for various payments, from rent to personal transactions. Accurately completing all parts of a check ensures funds transfer correctly and securely, preventing potential issues or delays.
Writing the Amount in Words
When writing a check for $2,500, “two thousand five hundred” is the formal and recommended phrasing for clarity. Spelling out the entire amount helps prevent ambiguity and alterations. For instance, $130.45 would be written as “One hundred thirty and 45/100 Dollars.”
For round dollar amounts, include “and 00/100” to indicate no cents, such as “Two thousand five hundred and 00/100 Dollars.” Always write clearly and legibly in permanent ink. After writing the amount, draw a line through any remaining blank space to prevent unauthorized additions.
Writing the Numeric Amount
The numeric amount is entered in a designated box, typically to the right of the payee line and preceded by a dollar sign. Write this amount clearly using numerals, including the decimal point to separate dollars from cents. For example, $2,500 is written as “2500.00.”
To enhance security, begin writing numbers as far left as possible within the dollar box. This prevents someone from inserting additional digits, which could fraudulently increase the check’s value. The numeric amount must precisely reflect the intended payment.
Why Both Amounts Are Important
Including both the written and numeric amounts on a check enhances security and clarity. In the event of a discrepancy between the numeric value and the amount written in words, the written amount is generally considered the legal amount and takes precedence. This principle is based on the Uniform Commercial Code, which states that words prevail over numbers in contradictory terms.
Both fields act as a safeguard against fraud and accidental alteration. It is more difficult to alter a written amount without it being obvious than to change a few digits in the numeric box. This dual entry ensures the intended payment amount is clear and accurate.
Other Key Elements of a Check
Beyond the monetary amounts, several other elements must be completed accurately for a check to be valid. The date line, located in the upper right corner, indicates when the check was written. Checks generally cannot be cashed before the specified date.
The payee line specifies who is authorized to receive the funds, requiring the full legal name of the individual or organization. The signature line, typically at the bottom right, is where the account holder must sign. An optional memo line allows for a brief note regarding the payment’s purpose, helpful for record-keeping.