How to Write a Cheque Correctly and Safely

A cheque is a written, dated, and signed document that instructs a bank to pay a specific amount of money from your account to the person or entity named on it. This financial instrument serves as a reliable method for making payments without physical currency, providing a transaction record. While digital payment methods are widespread, cheques continue to be used for various transactions, including bill payments, gifts, or transferring funds. Understanding how to properly write and manage cheques remains a valuable financial skill.

Key Parts of a Cheque

A standard cheque contains several distinct sections, each serving a specific function:
The “Date Line” in the upper right corner indicates the day the cheque is written.
The “Pay to the Order of” line is for the name of the individual or organization receiving payment, known as the payee.
The “Numeric Amount Box” to the right of the payee line is where the payment amount is entered in figures.
The “Written Amount Line” below the payee line requires the payment amount to be spelled out in words.
The “Memo Line” near the bottom left offers an optional space to describe the payment’s purpose for record-keeping.
The “Signature Line” in the bottom right corner is where the account holder must sign to authorize payment.

Additionally, cheques include pre-printed information such as your name and address in the upper left corner, the cheque number in the upper and lower right corners, and your bank’s name, routing number, and account number along the bottom. The routing number identifies your bank, while the account number specifies your individual account.

Filling Out Your Cheque

To complete a cheque, first write the current date on the “Date Line.” You can format the date as MM/DD/YYYY or spell out the month. Next, on the “Pay to the Order of” line, print the full legal name of the person or company you are paying. Avoid leaving this line blank or writing “Cash,” as this makes the cheque payable to anyone who possesses it.

In the “Numeric Amount Box,” write the exact payment amount in numbers, including cents. Ensure the figures fill the space to prevent alterations. For example, write “500.00” for a whole dollar amount, or “5.50” for dollars and cents. On the “Written Amount Line,” spell out the dollar amount in words, followed by cents as a fraction over 100. For instance, “Five hundred and 00/100” or “Five and 50/100.” Draw a line from the end of the written amount to the end of the line to prevent additions.

Use the “Memo Line” to briefly note the payment’s reason, like “January Rent.” This is optional but helpful for your records. Sign your name on the “Signature Line” in the bottom right corner, as a cheque cannot be cashed or deposited without your authorization. Always use a pen with black or blue ink, and avoid pencil, which can be easily erased and altered.

Safeguarding Your Cheques

Protecting your cheques prevents financial fraud and maintains accurate records. Store unused cheques in a secure location, such as a locked drawer, to prevent theft. Never sign a blank cheque, as this allows anyone to fill in an amount and payee, potentially leading to significant financial loss. When mailing cheques, use secure mailboxes and consider online bill pay services, which reduce the risk of mail theft and cheque alteration.

Maintain a cheque register to record the date, cheque number, payee, and amount for every cheque written. This register provides a real-time record of your account balance and helps identify missing cheques or unauthorized transactions. If a cheque is lost or stolen, immediately contact your bank to report it and request a stop payment order, providing details like the cheque number, amount, and payee. While a fee may apply for stop payment services, this action can prevent fraudulent cashing.