How To Write A Check Properly: A Comprehensive Guide
Writing a check might seem like an outdated skill in our increasingly digital world, but it remains relevant. Whether you’re paying a contractor, gifting money, or handling a situation where electronic payments aren’t feasible, knowing how to write a check properly is a practical life skill. This guide will walk you through the entire process, ensuring you can confidently and accurately fill out a check every time.
The Anatomy of a Check: Understanding the Components
Before you start writing, it’s essential to understand the different parts of a check. Each section serves a specific purpose, and knowing them will help you avoid errors and ensure your payment is processed correctly.
The Pre-Printed Information
At the top, you’ll find your name, address, and often your phone number. This is the information the bank uses to identify your account. The check number is usually printed in the top right corner and on the bottom. This is a unique identifier for each check.
The Payee Section: Who Are You Paying?
This is the most crucial part. The “Pay to the order of” line is where you write the name of the person or business you are paying. Be precise and double-check the spelling. Accuracy here prevents the check from being cashed by the wrong party.
The Amount in Numbers: The Numerical Representation
On the right side, there’s a small box. Here, you write the amount of the payment in numerical form (e.g., $100.00). This is a quick reference for the amount.
The Amount in Words: Spelling Out the Payment
Below the “Pay to the order of” line, there’s a line where you write the amount of the payment in words. This is a crucial security feature. The written amount is the legally binding amount. If there’s a discrepancy between the numerical and written amounts, the bank typically honors the written amount. Always start writing the amount as close to the left margin as possible and draw a line after the words to prevent anyone from adding to the amount.
The Memo Line: Providing Context
Located in the bottom left corner, the “Memo” or “For” line is where you can add a brief description of the payment. This could be an invoice number, account number, or the reason for the payment. This is helpful for your records and for the payee.
The Signature Line: Authorizing the Payment
Located at the bottom right, the signature line is where you sign the check. Your signature authenticates the check and authorizes the bank to release the funds. Signatures should match the signature on file with your bank.
Step-by-Step Guide: Filling Out a Check
Now that you understand the components, let’s go through the process of filling out a check, step-by-step:
Date the Check: Write the current date in the top right corner. Use the month/day/year format (e.g., 01/15/2024).
Identify the Payee: On the “Pay to the order of” line, write the full name of the person or business you are paying.
Enter the Numerical Amount: In the small box on the right, write the amount of the payment using numbers. Include the dollar sign and decimal, even if the amount is a whole number (e.g., $100.00).
Write the Amount in Words: On the line below the “Pay to the order of” line, write the amount in words.
- Start at the left margin.
- Write the dollar amount first, followed by “and” and then the cent amount (if any).
- For example, for $100.00, write “One hundred and 00/100”.
- For $125.75, write “One hundred twenty-five and 75/100”.
- Draw a line after the words to prevent alterations.
Add a Memo (Optional): In the “Memo” or “For” line, write a brief description of the payment, such as “Invoice #1234” or “Rent for January.”
Sign the Check: Sign your name on the signature line at the bottom right. Your signature should match the one on file with your bank.
Common Mistakes to Avoid When Writing a Check
Even experienced check writers can make mistakes. Being aware of these common errors can help you avoid them:
- Incorrect Payee Name: Double-check the spelling of the payee’s name.
- Incorrect Numerical Amount: Ensure the numbers are clear and legible.
- Incorrect Written Amount: Be precise and accurate when writing out the amount in words.
- Leaving Spaces: Leaving blank spaces before or after the written amount, or after the payee’s name, can leave room for alteration.
- Forgetting to Sign: A check without a signature is invalid.
- Using the Wrong Date: Always use the current date.
- Writing Outside the Lines: Keep your writing within the designated areas of the check.
- Using Erasures or White-Out: Avoid making corrections on a check. If you make a mistake, void the check and write a new one.
Check Security: Protecting Yourself and Your Funds
Check fraud is a persistent concern. Here are some tips to enhance your check security:
- Use a Secure Pen: Use a pen with permanent ink that cannot be easily erased or altered.
- Store Checks Securely: Keep your checkbook in a safe place, away from prying eyes.
- Monitor Your Account: Regularly review your bank statements for any unauthorized transactions.
- Consider Check Fraud Protection: Many banks offer services like positive pay, which helps prevent fraudulent checks from being cashed.
- Shred Old Checks: Once you no longer need a check, shred it thoroughly to prevent identity theft.
- Be Mindful of Where You Write Checks: Avoid writing checks in public places where others can see your account details.
Voiding a Check: When and How
Sometimes, you’ll need to void a check. This might be because you made a mistake, the check was lost, or the payment is no longer necessary. To void a check:
- Write “VOID” across the face of the check in large letters. Ensure it is clear and obvious.
- Keep the voided check: Do not discard it. Keep it with your records for reconciliation purposes.
- Update your records: Note in your check register that the check was voided.
Using Check Writing Software and Online Resources
Several software programs and online resources can assist you in writing checks. These tools can help you format checks correctly, track your spending, and maintain accurate financial records. Explore options like Quicken, Microsoft Money, or your bank’s online check-writing features (if offered). These resources can streamline the process and reduce the risk of errors.
Frequently Asked Questions
What happens if I make a mistake on a check? If you make a mistake, the best course of action is to void the check and write a new one. This prevents potential fraud or errors.
Can I use a pen other than black or blue ink? While not strictly prohibited, it is best practice to use black or blue ink, as these colors are most easily readable by banks and check-processing machines. Avoid using colors like red or green, which might not be processed properly.
How long is a check good for? Typically, a check is considered valid for six months (180 days) from the date written. After this period, the bank may refuse to cash it. However, it’s a good idea to deposit or cash checks promptly.
Can I write a check for more than the available balance in my account? No, you should not write a check for more than the available funds in your account. Doing so will result in the check being returned unpaid, and you may incur overdraft fees.
What if I lose a check I wrote? If you lose a check, contact your bank immediately to report it lost and to request a stop payment. This will prevent the check from being cashed fraudulently.
Conclusion: Mastering the Art of Check Writing
While the world moves increasingly towards digital payments, knowing how to write a check properly remains a valuable skill. By understanding the anatomy of a check, following the step-by-step guide, avoiding common mistakes, and prioritizing security, you can confidently navigate this sometimes-overlooked aspect of personal finance. Remember to always double-check your work, keep your checks secure, and be mindful of the details. With practice and attention, writing a check will become second nature, ensuring your payments are accurate, secure, and processed without issue.