A check is a written, dated, and signed valuable document that serves as an instruction to a bank to pay the bearer a certain amount of money.
If you are the one writing the check, you are the payor, and the person to whom you are writing the check is the payee.
There are many types of checks, such as:
Checks are still used today, even though they are becoming less prevalent in the digital era, given the abundance of online options for sending money. You might still use checks to pay your rent or to cash checks you receive as gifts from your elderly uncle.
This article will teach you all you need to know about writing checks, including how to write them step-by-step, cash them, identify fraudulent checks, and much more.
6 Easy Steps to Write a Check:
You will see along the bottom of the check three groupings of numbers printed there. The first is the routing number, the second is the account number, and the third is the check number.
Even if you don't need to be familiar with these when learning to write checks, it's nevertheless beneficial to know what these numbers stand for if a fake check is being presented.
Routing Number: Your bank's routing number serves as an identification number and is unique to each bank. If in doubt, check your bank's routing number.
Account Number: The number immediately to the right of the routing numbers is your bank account number-the account from which the check is drawn.
Check Number: This number serves as a unique check identification. It can be found in the check's top right or bottom right corners.
If you don’t fill any amount on the check even though it has been signed by you, the check is a blank check.
For example, if you have to write a check for $700.50, it would be written as ‘seven hundred dollars and 50/100’. You have to write the cent in fractional format when you are writing the amount in words.
You have the write $1000.00 as ‘one thousand dollars and 00/100’.
You will need to write your signature on the back of a check that is written to you. Only then will you be able to cash it. Additionally, if you are depositing the money into that account, you must include particular information, such as the account number.
The memo line is to write the purpose of the check, such as rent or utility payments. This is optional. But it is a good idea to use the memo line to remind you of the reason for writing the check. Later on, it will be much simpler for you to maintain track of your finances or balance your records.
You can write a check to yourself by putting your name in the Pay to the order of” field. To cash it, you sign the check on the back of it. You can do this if you wish to transfer money from one account to another account.
The act of converting a check into actual cash after receiving it is known as "cashing a check."
To cash a check made payable to you:
The majority of checks clear in two business days.
You can go directly to a bank location and ask to have the checks deposited and paid right fast if you need the money in your hands right now. You might be given the money right away by a teller.
Delays may occur because banks must also confirm the validity of the deposit to guard against fraud and potential losses from risky deposits.
More than six months old checks are typically not accepted by banks. If you wait too long, there's also a potential that the check writer will close their account or utilize the money set aside for your check, leading the check to bounce. It’s always best to deposit or cash a check as soon as possible.
Yes. Although it is not as simple as cashing a check at a bank, you can cash a check at an ATM. Keep in mind that not all ATMs will have this feature; some will merely let you deposit the check, and some won't even accept it.
Simply bring your check, your bank card, and a pen (to sign the check) to the ATM if it accepts checks, and then follow the on-screen instructions. You might need to have enough money already available in your account before the ATM can dispense the funds on the check.
Online check cashing is possible with mobile banking. You can complete it quickly and easily from the convenience of your home. Open the mobile app for your bank, find the check deposit page, and follow the on-screen directions to deposit a check online.
To deposit a check directly into your account, you might need to take a picture of it with your smartphone and submit it using the mobile app for your bank.
Not every bank or credit union cashes checks for people who are not their customers. Only particular kinds of checks, such as government or salary checks, may get cashed at such banks. Banks favor checks that have guaranteed funds, such as certified and cashier's checks.
Call ahead and bring your ID if you're heading to a bank where you don't have an account so that the bank can be sure the appropriate person is receiving the cash. IDs can include:
If you don't have an account, banks will charge you a fee to cash a check. You may have to pay a flat fee of roughly $6 to $10, or the larger of a minimum fee or a percentage of the check amount, like 1%.
The best place to cash a personal check is the bank that issued the check. Look for the name or logo of the bank on the check to identify the issuing institution.
Remember that it should cost nothing to deposit a check into your checking account, and within a day or two, you can withdraw money from an ATM or bank branch.
In addition, banks normally only cash checks up to $5,000. However, this can vary from bank to bank. For checks over $5,000, banks frequently impose a higher fee.
You can cash at a bank, a credit union, a check cashing business or a few retail places. However, you must be aware that you cannot simply stroll into any bank and expect the teller to instantly convert your cheque into cash. If you don't have an account with the bank, the banks may not cash your checks.
You can also do it online using your bank’s mobile app.
Here are some places where you can cash checks if you don’t have a bank account. They will charge for it, and the fees will vary.
A check can be voided or canceled by writing the word "VOID" across the front in the largest and clearest font you can manage, ensuring sure it completely covers the check. A voided check cannot be deposited or paid. It becomes invalid.
A check can also be voided online. You might be able to log into the account depending on the bank, and if you have the choice to void a check or stop a check payment, choose this option and cancel the relevant check number.
You can contact customer service to cancel it. Before you call, have your account number, check number, and the exact amount on the check ready. If you give the erroneous check number, the incorrect payment may be canceled.
Remember that if the bank needs to approve a stop payment request, there will be fees, and they will differ between banks. Usually, they cost around $30.
One of the most prevalent types of fraud is the use of fake checks. You must confirm its validity before cashing it.
Here are some tips to spot a fake check:
Here we share some tips for writing a check that will ensure a smooth transfer of funds to your payee:
In conclusion, while sending money online is the fastest and easiest way of sending money, Online payment is the simplest option. If you must go with the old ways, writing a check is easier than it appears once you get the hang of it. Just be sure to properly fill in the date, amount, and your signature. Remember to include the cents in the fractional form when writing the words version of the amount.
And if the check is made out to you and you need to cash it, don't forget to endorse it by signing your name on the reverse. Writing or cashing a check will be a piece of cake after you have mastered the techniques.
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