How to Write Out Checks Accurately and Securely

Checks remain a common paper payment instrument allowing individuals and businesses to transfer funds from their bank account to a recipient. While digital payment methods have become widespread, checks are still frequently used for various transactions. Understanding the correct and secure method for writing a check is a valuable financial skill that ensures your payments are processed accurately.

Filling Out Each Part of a Check

The date line requires the current date. Writing the full date, including the month, day, and four-digit year, helps ensure clarity for record-keeping and processing.

The line labeled “Pay to the Order of” is where you write the full legal name of the person or organization receiving the payment. Accuracy here is paramount. Ensure the name is spelled correctly to avoid delays or issues in processing the payment.

Located to the right of the payee line, the payment amount is written in numerical form. Write the dollar amount clearly, using a decimal point to separate dollars and cents, ensuring the numbers are legible and fit within the designated space.

Below the payee line, this longer line requires the payment amount to be written out in words. This serves as a safeguard against alterations and is the legally binding amount if there’s a discrepancy with the numeric amount. Write the dollar amount in words, followed by “and” for the cents, expressed as a fraction over 100.

The signature line is where you sign your name exactly as it appears on file with your bank. Your signature authorizes the bank to release the funds from your account to the payee.

The memo line is optional but useful for adding a brief note about the payment. This could include an account number, invoice number, or a description of the payment’s purpose.

Important Details for Accurate Checks

When writing the numeric amount, always include cents, even if it’s zero. For the written amount, cents are typically expressed as a fraction over 100, like “One hundred and 00/100 dollars.” This precise notation prevents anyone from altering the amount by adding extra digits or words.

The date on a check indicates when it was written, but it also affects when it can be processed. Post-dating a check means writing a future date, implying it should not be cashed until that specific date. Conversely, a stale-dated check is one that is presented for payment too long after its issue date, typically six months for most personal and business checks, which banks may decline to honor without further inquiry.

If an error occurs while writing a check, it is important to void it correctly to prevent accidental use. To void a check, write the word “VOID” in large letters across the entire front of the check. It is also advisable to tear off the signature line or shred the check entirely to ensure it cannot be deposited.

The memo line provides a valuable space for clear communication regarding the payment. Including specific details, such as an invoice number, account number, or a brief description of the service or product being paid for, helps both the payer and the payee track the transaction. This small detail significantly improves record-keeping and reconciliation, especially for tax purposes or dispute resolution.

Protecting Your Checks

To prevent unauthorized alterations, it is important to fill all relevant lines on a check completely. After writing the written amount, draw a horizontal line through any remaining blank space on that line to the “dollars” word, ensuring no additional words can be inserted. This simple step protects against someone increasing the payment amount.

Maintaining accurate records of all checks written is a fundamental financial practice. Utilize a check register, a dedicated ledger, or a digital spreadsheet to record the check number, date, payee, and exact amount of each payment. This practice helps reconcile your bank statements and track your account balance effectively.

Blank checks should be stored in a secure location, similar to how you protect other sensitive financial documents. Keeping them in a locked drawer, safe, or secure filing cabinet minimizes the risk of theft or unauthorized access. Never leave blank checks in an easily accessible place where they could be taken.

Regularly reviewing your bank statements is a significant step in identifying any fraudulent or erroneous transactions. Compare your check register entries with the debits on your statement to ensure all checks cleared for the correct amount and to the intended payee. Promptly report any discrepancies to your financial institution.