What Is a Paper Check and How Does It Work?

A paper check is a traditional financial instrument that serves as a written, dated, and signed order instructing a bank to pay a specific amount of money. It functions as a secure way to transfer funds from one person’s account to another without the need for physical cash. Despite the rise of digital payment methods, paper checks continue to be used for various transactions, providing a tangible record of payment.

What is a Paper Check?

A paper check represents a written directive to a bank, authorizing the transfer of a specified sum from the check writer’s account to the designated recipient. For a check to be valid and processed correctly, it includes several distinct components. The payee line, typically preceded by “Pay to the order of,” identifies the individual or entity who will receive the funds. A numeric amount box displays the payment value in figures, while a separate written amount line spells out the same amount in words, which helps prevent alterations and clarifies the intended sum.

The date line indicates when the check was written, and a signature line requires the check writer’s approval for the transaction. An optional memo line allows for a brief description of the payment’s purpose, aiding in record-keeping for both parties. Identifying information includes the bank’s name and address, printed on the check. Along the bottom, the routing number identifies the specific bank, while the account number pinpoints the individual account from which funds will be drawn. Each check also features a unique check number, typically found in the upper and lower right corners, used for tracking and reconciliation.

Writing a Paper Check

The first step involves writing the current date on the line located in the upper right corner of the check. Next, on the “Pay to the order of” line, clearly print the full name of the person or organization receiving the payment.

After identifying the payee, enter the payment amount numerically in the small box to the right of the payee line, typically preceded by a dollar sign. Below this, spell out the same amount in words on the designated line, making sure to include cents as a fraction (e.g., “and 50/100”). Drawing a line through any remaining space after the written amount can help prevent unauthorized additions. Finally, provide your signature on the line in the bottom right corner, as this authorizes the payment from your account.

Using a Received Paper Check

Upon receiving a paper check, the recipient typically endorses it by signing their name on the back, often within a designated area. For mobile deposits, some banks suggest adding “For Deposit Only” below the signature. Checks can be deposited in-person at a bank branch, at an ATM, or using a bank’s mobile app, which requires clear photos of both check sides.

Alternatively, a check can be cashed. This option is available at the issuing bank (the bank named on the check) or at a check-cashing service or major retailer. Cashing generally requires a valid government-issued photo identification.