How to Give a Check to Someone Else

Checks remain a widely accepted method for financial transactions. This guide explores the practical steps for issuing a check from your account or transferring one you’ve received, ensuring payments are handled correctly and securely.

Preparing Your Own Check for Payment

Issuing a check from your personal account requires careful attention to detail. Begin by writing the current date in the designated space, in the upper right-hand corner of the check. This date establishes when the check was written and can impact when the funds are available to the recipient.

Next, accurately enter the payee’s full name or the name of the organization on the “Pay to the Order of” line. Confirm the correct spelling of the recipient’s name to avoid processing delays. A check made out to “Cash” allows anyone holding the check to deposit or cash it, which carries a higher risk and is discouraged.

The numerical amount of the payment should be written clearly in the small box provided, usually next to the dollar sign. For example, for one hundred dollars and fifty cents, write “100.50”. Immediately following this, write out the exact same amount in words on the line below the payee’s name. For example, “One Hundred and 50/100 Dollars,” utilizing the fraction “00/100” to denote any cents.

The memo line, located in the lower left corner, is optional but can be used to briefly describe the purpose of the payment, such as “Rent for August” or “Invoice #12345.” Finally, sign your name legibly on the signature line, in the lower right corner.

Transferring a Check You Received

Transferring a check you have received to another individual, known as a third-party check, involves a specific endorsement process. Endorsement refers to signing the back of a check to authorize its negotiation or transfer. For direct transfer to another person, a “special endorsement” is the primary method used.

To execute a special endorsement, turn the check over to the back and locate the endorsement area. Write “Pay to the order of [New Payee’s Name],” and then sign your own name directly below this instruction. This action legally transfers ownership of the check to the new payee, who can then deposit or cash it.

While other endorsement types exist, they are generally not suitable for transferring a check to another person. A “blank endorsement” involves only your signature, making the check payable to anyone who possesses it, which is highly insecure for transfers. A “restrictive endorsement,” such as “For Deposit Only,” limits how the check can be used and prevents its transfer to a third party.

It is important to understand that not all banks readily accept third-party checks due to increased fraud risk and compliance requirements. The recipient’s bank may require additional verification from both parties or may outright refuse to process the check. Before attempting a third-party transfer, it is advisable to confirm with the recipient’s bank whether they will accept the endorsed check.

Delivering the Check Securely

Once a check has been properly prepared or endorsed, the next step involves securely delivering it to the intended recipient. For local transactions, handing the check directly to the payee in person is often the most straightforward and secure method. This ensures immediate receipt and minimizes the risk of the check being lost or intercepted.

When physical handover is not feasible, mailing the check is a common alternative. Always use a sturdy, non-transparent envelope and ensure the recipient’s full name and correct mailing address are clearly written on the front. Consider using a return address to facilitate its return if undeliverable. For payments of significant value or those requiring proof of delivery, options like certified mail or a courier service provide tracking and confirmation of receipt.

Regardless of the delivery method chosen, maintaining a personal record of the check is a prudent practice. Before sending, consider taking a photograph of the completed check, front and back, for your records. Additionally, record the check number, date, payee, and amount in a check register or personal transaction log. This documentation serves as a valuable reference for reconciling your bank statements and resolving any payment discrepancies that may arise.