Many transactions these days are made online. There are different modes of payment – cash, debit/credit card, net banking, UPI IDs, gift cards, etc.
But, many of us still use checks to fulfill our transaction commitments, because of its ease of use and it also helps in postponing the transaction. Checks are also the most preferred way of payment for businesses, because of its legal credibility.
Writing a check is not a herculean task, but it has its own difficulties. When we are new to writing checks, it can be highly difficult to understand what is what. There are also some points to remember when you are writing a check without any cents.
So, let us look into this article on how to write a check and what we have to do when we are writing an amount that has no cents.
Checks are just like filling out any other forms. You have to write the details in the blank space next to the questions. In short, checks require basic information about the payer, payee, and transaction details.
The common information that we have to write in a check are:
- Date
- Name of the payee
- Amount in numbers
- Amount in alphabets
- Memo
- Signature
Date
The date box is in the upper right corner of the check. That’s the first thing you have to fill. This detail is very important and you have to fill in the Date carefully without any error.
The date format to write in your check depends on the place you live. In the USA we use the month/day/year format while some other countries use the day/month/year format.
Depending on your place, write the date in a proper format. You can also postdate your check, and present it to the payee.
Your payee has to wait until that date to withdraw money from your account. This is one of the most useful features of a check, it allows you to buy some time to complete the payment.
Name of the Payee
The first section in the center of the check requires you to write the name of the person you are paying to. It could be an individual, a business, or an organization.
Make sure you write the full official name of the payee and not nicknames or short names. The name is verified in the bank before clearing, so make sure that there are no spelling errors and confirm with the payee before writing down the name in the check.
Amount in Numbers
Amount box lies closer to the payee section and right below the date box. Write the amount you are transferring in numeric form.
Remember to start closer to the box so that you can write a larger amount without any difficulty. Now, this is where we have to be really careful while writing the digits.
If the amount you are transferring does not have any cents, then you have to use zero decimals to be on the safer side.
For example, if the transferring amount is $10,000 then instead of writing $10,000 as it is, you can use decimals up to two places.
The right way to write this amount would be $10,000.00 this makes sure that no one can edit this detail and there won’t be any confusion.
In almost all checkbooks, the check leaf comes with the $ symbol imprinted in the date column. So, you don’t have to write in the $ symbol, you can just straight away start writing the digits for the amount.
Amount in Alphabets
This section is right below the payee section. You have to write the amount in alphabet format so that there is no malpractice done with your checks.
For example, Fifteen Thousand dollars only. You could also add a dash in the empty space.
Memo
This is an optional section that records the purpose of your payment. It’s better to fill it as both parties will understand the purpose of the transaction.
For Example, If you are paying for a furniture purchase, you can mention the purpose as “for furniture”.
Signature
Last but not least, you have to sign your name at the bottom of the check. This is to ensure that the check is being written by the same person who owns it.
Your sign should align with the sign you had submitted during the opening of your bank account. It is also important to note that, the signature in all the checks should be similar.
What not to do while writing checks?
- Using pencil is a strict no. People with bad intention could easily erase the content and write the details in pen. Always use a good quality pen. It avoids double writing.
- Sometimes people are prompted to sign checks without writing the amount. This could be disastrous again as people may fill in whatever amount they want with your official signature in it. Always sign the checks before giving it the payee.
- We all make mistakes while writing something on the paper. Some people have the tendency to erase it or even cut it. Such checks wouldn’t be accepted by the bank and your check may bounce. So make sure to write the check without any mistake even if it takes around 5-10 minutes. If by chance you have cut the lines or erased it, you can mention void on the check and write a new one.
- Write your numbers properly. Many people write different numbers in a similar way that when you put both of them together, it may look exact. For example 4 and 9. When the number 9 is not extended at the end properly, it may look like 4.
Things you should do if you write checks more often
Record all your transactions on the front page of the checkbook page. Your passbook also records the transaction, but it is better to keep things checked under your control.
That way, you will know the payment you made. Secondly, keep track of your balance. Writing checks these days could be an outdated practice. There are many malpractices involved with writing checks. Sometimes it can be misused by some, who take advantage of people with less knowledge about the bank process.
Nevertheless, many consider it to be the safest way of transferring the amount to the receiver’s end. Just to be on the safe side, it’s always better to have online bank facilities.
Almost all banks have highly safe applications to complete transactions, you could transfer your preferred amount through the options available in the bank’s app or you can also use other third-party transferring services such as Google Pay, Apple Pay, and other UPI services.
That way you can keep track and manage all your transactions digitally.
Conclusion
Now that we have summarized all important points related to writing checks, you can go through the above points and complete your transactions in a safe manner.