What If You Make a Mistake on a Check?

Mistakes can happen when managing financial documents, and checks are no exception. Writing a check involves precise details, and even a minor oversight can lead to complications. Understanding how to handle errors, both before and after a check is submitted, helps ensure the smooth flow of payments and maintains financial accuracy. This knowledge is crucial for maintaining financial integrity.

Understanding Common Check Errors

Several types of errors can occur when preparing a check, often leading to processing delays or rejection by financial institutions. Common mistakes include discrepancies between the numerical and written amounts, which can cause confusion regarding the intended payment value. Illegible handwriting for the amount, payee name, or signature also frequently leads to a check being unprocessable.

Other issues include entering an incorrect payee name, such as a misspelling or listing an individual instead of an organization. Dating errors are also prevalent, including post-dating a check for a future date or using an outdated past date, which can impact when funds are available. A check requires a clear and consistent signature from the account holder to be valid. While errors on the memo line are less critical, they can still cause internal accounting issues for the recipient.

Correcting Errors Before Submission

When an error is discovered on a check before it is given to the payee, specific correction methods can be applied for minor mistakes. For a small error, such as a single digit in the numerical amount or a letter in the payee’s name, draw a single, neat line through the incorrect information. The correct data should then be written clearly above the crossed-out section. It is important to initial the correction immediately next to the change.

It is important that both the numerical and written amounts exactly match, as banks typically rely on the written amount if a discrepancy exists. Any corrections to the amount fields must be done meticulously to avoid suspicion of alteration or fraud. If the date is slightly off, it can be corrected with a single line through the incorrect digit, writing the correct one above, and initialing. A clear, consistent signature is also required, and any illegibility should prompt writing a new check if a simple correction is not possible.

When to Void a Check

There are specific instances when a check contains errors that are too significant or numerous to correct reliably, making it necessary to void the document. If multiple errors occur, such as an incorrect payee name combined with an incorrect amount, attempting to correct all fields can make the check appear suspicious or fraudulent. Similarly, if a check becomes damaged, torn, or excessively stained, it should be voided to prevent misinterpretation or processing issues.

To void a check, write “VOID” in large, clear letters across the entire face, ensuring it covers the amount, payee, and signature lines. Use indelible ink, such as a black or blue ballpoint pen, to prevent the mark from being erased or altered. Voiding a check indicates it is not intended for payment and prevents anyone from attempting to deposit or cash it. It is advisable to record the voided check’s number in your check register or financial records for accurate reconciliation.

Addressing Issues After a Check is Submitted

If a check with an error has already been submitted and processed, or if it bounces, immediate action is required. An erroneous check, particularly one with insufficient funds or an unresolvable discrepancy, can lead to the check “bouncing.” This often results in fees imposed by your bank, which can range from $25 to $35 per returned item. The payee’s bank may also charge them a fee, which they might pass on to you.

Upon discovering an issue with a submitted check, contact your bank to understand the reason for the return or error. Communicate promptly with the payee to inform them of the situation and arrange for an alternative payment method. This proactive communication can help avoid late payment penalties or further complications. Issuing a new, correct check is often the most straightforward resolution, ensuring the payment is successfully completed.