How to Write a Check

Writing a check can be used to pay friends, businesses, and make payments without giving physical cash. A check is a written and dated tool that can be cashed or deposited at any financial institution or check cashing location. As the owner of the check, you’re giving the bank instructions to transfer funds from your checking account to an individual or a company.

Why Write A Check

Most businesses require to be payed by check for proof of payment and accounting purposes. Instead of carrying $100,000 in cash, checks can replace that paper money and will make a small or large transaction convenient. The account holder will also have the option to put a stop payment or void a check in case it’s lost or stolen. With the help of technology, businesses can add a fraud-prevention system provided by most banks for companies to protect their funds against forged, altered, and counterfeit checks.

Basics of A Check

The top right corner is the check number and you’ll also find this number at the bottom as well. Under the check number is where you put the present date. Now if a check you received is dated 6 months or older it’ll be considered stale date and banks may refuse to cash or deposit. They also may refuse to cash if the check is dated for a future date. So make sure the date is accurate when giving or receiving a check. *Individuals can also deposit checks through their mobile devices. “Pay to the order of” is the name of the payee or the person benefiting from the check. It’s important to put the person’s full legal name that’s spelled on their Driver License or ID and full business name when paying a company. Banks want to make sure the person on the check is getting funded and not someone else impersonating you. Under the “Pay to the order of” line and before the word “dollars” is where you must write the total amount. Banks do not go by the numerical amount. So if the numbers read “$200.00” and the written amount is “two dollars”. You will be given two singles. Please double check the written amount. Below the written amount to the left is the memo line which is optional as a side note. On the bottom right is where the owner of the check must sign exactly how they signed the documents to open the account. This verifies to the bank that the owner agrees to pay the stated amount and to the payee.

Lastly, the most important part of the check is the MICR line. The MICR is a group of three numbers which consists of the bank routing number, account number, and check number. If any of the account or routing numbers are missing you’ll have to request another check because it will not be cashed. U.S. routing numbers will always be nine digits and is made visible to the public online. With most banks the routing numbers are the same but vary in different states. In other words, Bank of America’s routing number in Florida is 063100277 but in California it’ll be 121000358. Your account number is different from everyone else and this is the number your bank will use to identify you.

RECAP

If you’re receiving a check, your only duty is to endorse the back of the check. Verify information on the check which includes the correct date, your legal name, the numerical amount, and if the owner signed on the front of the check. If you’re writing a check to a person or a company fill out the correct date, write the correct legal name, make sure the written amount is correct because that’s what banks look for, and sign on the lower right.

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