Financial transactions are increasingly becoming digital in today’s world. However, the most surprising thing is that checks are still common. Paper checks are an inexpensive and effective tool for transacting money. You may have or never used them before and now want to know how to write a check.
Fortunately, writing a check is an easy routine. With this step-by-step guide, we’ll look at the best ways to write it. Remember you may want to write a check in future, which means you should check each of these steps.
- Date: You should write the date near the top of the check’s right-hand corner. In most instances, you should use today’s date. It enables you and the recipient to have accurate records. On the other hand, you can postdate the check, if you want the payee to cash the check at a later date.
- Payee: On the check, you will find a line, which says, “Pay to the order of”. You should proceed and write the name of the organization or person that you’re paying. You may ask who “who is the person am I going to make the check out to?”, for example, if you’re not sure on what to write.
- Use Numeric Form to Write the Amount: The next step is to write the payment amount in numeric form in the small box that’s found on the right-hand side. Make sure you write as far over to the left-hand border as much as possible. If the payment amount is $7.17, the “7” should be written right up against check’s left-hand border. By doing this, you’ll avoid yourself from being a victim of fraud because someone with malicious intent can add a figure in-front of the 7.
- Write the Payment Amount in Words: Make sure you write the amount in words to prevent instances of fraud or confusion. It will be your payment’s official amount. The payment amount is written in words on the line under the Payee.
- Signature: You should then legibly sign the check on the line found on the check’s bottom-right corner. Make sure the name and signature you use are similar to the one on file at your bank. This How to Write a Check step is extremely important since, without a signature, the check won’t be valid.
- Memo (Or “For”) Line: If you want, you can include a note. However, you should realize that this step is optional and won’t affect the processing of your check by the banks. The memo line is the best place to include a reminder about the reasons for writing the check. You may also find it to be the ideal place to write any information that the payee will use to process the payment (or find your account in the unfortunate instance something gets misplaced). You can write is your Social Security Number when making a check payment to the Internal Revenue Service or IRS, or a utility payments account number.
After you finish writing the check, make you keep a record of the payment. The best place to make a record is a check register, whether you use a paper or electronic register. Having records of payments avoids instances of you spending the money for other purposes.
Remember the funds will still be shown as available in your bank account until after the check is cashed or deposited, and this may take a while. To avoid this, you should make a note of the particular payment the moment you finish writing the check.
Electronic and credit cards payment options may be the convenient thing to do now. Knowing how to write a check, on the other hand, may help you navigate the world and prevent fraud or confusion when making payments.