Highlights :
- It is a written mode of making payments.
- It directs the bank to pay a specified sum to a person whose name is written.
- It is also treated as a negotiable instrument or person’s order on demand.
- It can be considered as another way to instruct a bank to transfer funds from the payer’s account to payee account.
- Various types of checks include certified checks, cashier’s checks and paychecks.
In these era of digitization, where online payments and mobile deposit had substituted written mode of payments, you still can use this mode to make payments.
Paper checks are considered to be an effective and inexpensive tool for making payments. You get these from the banks you are having your account with.
Basically, this is a piece of paper that directs a bank to pay a specific amount of money.
Bank transfers money from the issuer account to another person whose name is specified.
If you had received any of these then, you can in cash it into money by depositing it into the bank.
Read Also:
Many people do some mistake when they fill check first time, Read, if you also don’t know How To Write A Check For Yourself?
What is a counter check?
How To Write A Check
Writing a check is very easy task and can be learnt within a minute.
Sometimes, you also have the option to issue a postdated check where you allow the recipient to wait until you have money in your bank account.
If you are using this one for making payments for the very first time and don’t know how to write these, Then don’t worry,
There are following steps which you can follow while writing:
Step 1. Date A Check:
Writing a date is more important. Generally, you will mention today’s date on it, so that the bank and another person may know when this certified check had drawn and the recipient can keep the accurate record of payments. You have to mention a date on top right hand corner of it.
Step 2. Name Of A Party :
The next line will be “Pay to the order of” where you have to use the legal and the correct name of an individual or any company or anyone to whom you want to pay. Such party also known as “Payee”.
You have to be very specific regarding the name of the person, as the name of the party needs to be accurate.
Step 3. Payment Amount In Numbers :
This is the amount which you want to pay. You have to mention the amount in the small box on the right side of the check. Be careful while writing an amount, as this amount will be subtracted from your account.
Step 4. Payment Amount In Words :
You have to rewrite an amount in words too in the line below “Pay to the order of”. This will avoid confusion.
Use capital letters to rewrite the whole amount in words. The amount in words must be same as amount in numbers, if any difference found, then the amount you wrote in words will be considered by bank for making payments.
Step 5. Write A Memo :
Writing a memo is an optional. In memo you have to mention a reason in brief or a short description regarding payment. Here you can also write your account number or any other information for the payee or for a bank.
For example : If you are writing a check for making payment for rent, then you can use “Rent payment” in the memo. You can also mention your social security number when paying the IRS.
Step 6. Sign The Check :
At the bottom right hand corner you have to sign, which shows to the bank that you agree to pay a certain sum of money to another person whose name is written in it. Your signature will shows its validity.
After writing one, deposit this in your bank where you are having your account. You have to also maintain a checkbook and keep a record while issuing a check.
You can also issue an electronic check which is known as e-check. Most of the banks, online payment site allows you to make payments using this option. While making payments using these, you will need only your bank account number and your bank routing number.
For authorizing such payments through e-check you need to sign it by typing your name or initials in the required field.
How To Write A Check With Cents
This you have to write in both, in numbers and in words. Firstly, mention an amount in numbers (with $ sign) which is followed by a decimal point (.) and then mention the number of cents.
In case of the amount in words, rewrite the amount in words and then rewrite the number of cents, then put slash (/) and then write 100.
For example, write $8.15 as “Eight dollars and 15/100”.
How To Write A Void Check
If you want to make your check “void”, then just write a word “VOID” across the front of it in large letters and letters should be big and clear. This will prevent from misuse of this paper for wrong payments.
How To Write A Personal Check
Personal checks can also be used for withdrawing money for yourself. Writing one for yourself is same as writing one to others.
- Firstly, mention the date at the right hand corner.
- In “Pay to the order of” mention your legal name.
- Then, mention the amount in numbers as well as in words.
- If you want to give any note, then give that in “Memo” line.
- At the end sign the check.
How to Write Numbers In Words On a Check
The amount in words must be same as in numbers. For example: If you are issuing one for $130.45, you will quote this as “One hundred thirty and 45/100”.
How To Write A Check For 1000
Issuing one for $1000, is same as writing one for another amount. The difference is only in writing $1000 in words.
After filing other information, you will write $1000 in words as
“One thousand and 00/100”.
CONCLUSION:
You don’t need an expert in writing a check, just follow the above steps while writing. Now a day people are using their debit cards, credit cards, online payment systems for any transactions.
There are very few people who still use a paper check to make payments. But writing one is an easy task and also can be used when the electronic payments failed during making payments.
Hope you get some useful information in this article. We have covered max possible queries about how to write a check? If you still have any question, you can comment below. We will try to respond as soon as possible. For more information you can visit our official website lowearnings.com.
