How to Correctly Write a Check to Prevent Errors
Navigate the process of writing checks with confidence. Learn precise methods to ensure accuracy and prevent common errors.
A check serves as a written instruction to a bank, directing it to transfer a specific sum of money from your account to the person or entity named on the check. It remains a relevant payment method for various transactions, offering a tangible record and a secure alternative to cash for certain payments.
Filling Out Your Check Step-by-Step
Begin by writing the current date in the designated space, typically located in the upper right-hand corner of the check. This date establishes when the check was written and can be important for record-keeping and for determining the check’s validity period, as checks are generally valid for six months from their issue date.
Next, locate the “Pay to the order of” line and accurately write the full name of the recipient, whether it’s an individual or an organization. If paying a business, use its exact legal name to avoid processing delays.
Directly to the right of the payee line, you will find a small box, usually preceded by a dollar sign. Here, write the numerical amount of the payment, including both dollars and cents. For example, if paying fifty dollars and 25 cents, write “50.25.” It is advisable to write the numbers as far to the left as possible within the box to deter alteration.
Below the payee line, a longer line is provided for writing out the payment amount in words. This written amount acts as the legal tender amount in case of a discrepancy with the numerical value. Spell out the dollar amount clearly, such as “Fifty and 25/100,” ensuring cents are written as a fraction over 100. After completing the written amount, draw a line through any remaining blank space to prevent unauthorized additions.
The memo line, typically in the bottom left corner, is an optional space where you can briefly note the purpose of the payment. This can be useful for personal record-keeping, such as “Monthly Rent” or an invoice number, and does not affect the check’s negotiability.
Finally, sign the check on the signature line in the bottom right-hand corner. Your signature authorizes the payment and must match the signature on file with your bank.
Ensuring Accuracy and Security
After writing a check, reviewing it for common errors is important to prevent processing delays or financial complications. Mismatched numerical and written amounts, missing signatures, or unclear handwriting can cause a bank to reject the check.
Maintaining a detailed record of your checks is an important practice for managing your finances. A check register, whether a physical log or a digital spreadsheet, allows you to track the check number, date, payee, and amount of each transaction. This record helps you monitor your account balance, reconcile statements, and identify any discrepancies.
For security, use a pen with indelible ink, such as a black gel pen, which makes it significantly harder to alter. Avoid leaving large blank spaces on the check, particularly around the amount fields, and draw lines through any unused portions. Store unused checks in a secure location, treating them with the same care as cash, to prevent theft and fraud. Regularly reviewing your bank statements for unauthorized transactions provides another layer of protection against fraud.