Writing a Check – A Step-By-Step Guide
Writing a check is a life skill that many people rely on to pay bills, settle invoices, and make other monetary transactions in their daily lives. While electronic payment methods have become increasingly popular in recent years, paper checks are still commonly used for various financial purposes. This article will provide a comprehensive guide on how to properly write a check, including the basic components, important information to include, and tips for ensuring the transaction is processed correctly.
Starting with the Basics
The standard layout of a personal check includes a number of important fields that should be filled out correctly. Let’s break down each section:
Date – The month, day, and year the check is being written should always be included in numeric format (e.g. 01/15/2023). This helps identify the check and ensures it is not post-dated.
Pay to the Order of – This is where you write out the full name of the person or business you are paying with the check. Spelling the name correctly is crucial so the payment is applied to the right recipient.
$ – The dollar sign should be placed before the numerical amount in words section.
Amount (in words) – The monetary amount of the check needs to be written out in long hand underneath the dollar sign (e.g. “One Hundred Twenty Three Dollars and 45/100”). It’s important to double check for spelling errors here.
Amount (in numbers) – The same amount should then be written out in numeric form to the right of the text (e.g. “$123.45”). This ensures the recipient and bank can match the written and numeric values.
Signature Line – This is where the check writer signs their name to authorize the payment and validate it as their legal transaction. Only the authorized signer should endorse the check.
Now on to some optional but recommended fields:
Memo – A short description of what the payment is for can be provided here for your own bookkeeping records (e.g. “June rent”).
Date Line – Repeating the numeric date above the signature line is a best practice some banks prefer.
Additional information like your address, phone number and potentially drivers’ license number or other ID can also be included. Not all recipients require this supplementary data.
Filling in these key fields correctly is the basic framework for writing a valid check. Let’s dive deeper into some important tips and considerations.
Use a Ballpoint Pen
For the integrity of the payment information, it’s advised to always use a standard black or blue ballpoint pen when physically writing out a check. Pencils and other writing utensils can smudge or erase more easily. A ballpoint pen provides durable, permanent ink that won’t fade with normal handling and processing.
Include All Relevant Information
Double check that you have the full, proper name and address of who you are paying written out correctly. Mistakes here could result in delays or the payment being sent to the wrong party. Providing extra context in the memo is also a smart practice to clearly identify the purpose.
Sign in Ink – Never Pre-Sign Blank Checks
Only use a ballpoint pen to personally sign the check – never use pencil, never pre-sign blank checks, and never sign until ready to finalize the transaction and mail or hand it over. This helps prevent fraud if a check were to be stolen or altered after the fact.
Date the Check Properly
Remember to always date the check with the date it will be delivered or mailed, not a future or past date. Post-dating a check can cause delays while it goes through processing. Do not backdate either, as that could potentially raise red flags.
Account for Fees and Balances
Be sure to account for any check processing or overdraft fees charged by your banking institution and ensure sufficient funds are available in the linked account on the date the check will clear. Nonsufficient funds fees can hit your account hard if it bounces due to low balance issues.
Consider Alternatives for Large Payments
While checks are a trusted payment method, alternatives like wire transfers, direct debit, or bill pay services through online banking may be safer and faster options for paying larger invoices or time-sensitive bills. Just be aware of any transaction limits and fees associated with alternate methods.
Record the Check Number When Writing
Jot down the pre-printed check number from the top or bottom of the form for your records. Later, when the payment clears, you’ll want to match it to the transaction in your bank statements. Keeping track of check numbers makes reconciliation easier down the road.
Use Common-Sense Precautions
Physical checks are still a target for would-be thieves looking to commit check forgery or fraud. Follow basic safety practices like shredding unused/voided checks, signing checks privately away from prying eyes, and depositing or mailing payments in a timely manner. Consider requesting signature-backed checks from your bank as an extra layer of security too.
With the proliferation of digital payments, writing checks may seem like an outdated process. For certain applications they remain the preferred or only accepted payment type. By understanding the components and guidelines above, you’ll be equipped to craft error-free checks that get the job done properly. Of course, for any major financial transactions, don’t hesitate to refer to your bank for guidance or clarification on best practices. With care and accuracy, paper checks can still serve their purpose smoothly well into the future when electronic options aren’t available or prudent.
Andrew Stroud