In recent years, the use of personal checks has decreased as credit and debit cards, as well as mobile phone payments, have grown in popularity. Nevertheless, whether you're paying rent or giving a buddy a wedding present, checks can still be a handy means to move money from one account to another. To lower the chance of fraud or check refusal, it's crucial to learn how to write checks correctly with dollar and cent values.
Formatting the Dollar and Cent Amounts
Fill in the "amount" box with a numeric amount. Below the "Date" line and to the right of the "Pay to the Order Of" line on the right side of the check is the amount box. To the left of it is a sign that denotes the currency, such as $ or £. Put numbers in this box to indicate the amount of the cheque you want to write.
Include the decimal and cent amount even if the amount is in even dollars.You are allowed to write a check for, say, 47 even dollars, in which there are no cents to be paid. In this situation, you still need to say that "zero" cents are due. This is accomplished by keeping the decimal point in place and adding two zeros after it: 47.00
Fill in the textual amount. You will see a second line with the currency typed out at the end underneath the "Pay to the Order Of" line. For instance, this blank line finishes with the word "dollars" in America. Instead of using numbers, you will use words to describe the amount to be paid on this line.
The dollar amount is always expressed in words, while the cent amount is expressed as a percentage of one hundred. Due to the fact that there are 100 cents in a dollar, a check's total that includes 45 cents is equal to 45/100 of a $1. Although this is the fundamental guideline, there are a few alternative methods to structure the line's actual information.
Include optional information on the "Memo" line. If you don't have any specific information to contribute, you can leave the vacant Memo line in the bottom left corner of the check blank. This line is frequently used to indicate the purpose of the payment: "Babysitting," "Groceries," or "Happy Birthday!" If you ever need to account for the check in the future, this will make it easier for you to recall what it was for. However, you can also include information in the memo line that the person receiving the check would need to file and handle it.
Write out the textual amount even if it is very large. On the proper line, a sum of several hundred, thousand, or even million dollars must still be spelled out in words. Make sure you have adequate space because you may need to write in a very small script.
Filling out the Non-Monetary Fields
Write in the date. A little line with the word "Date" appears in the check's upper right corner. Put the correct abbreviation for the date you're writing the check on this line.
Post-date the check if necessary. You might not want the cheque to be paid right away for a variety of reasons. For instance, you could have to write a buddy a check today for more money than you have on hand. The check can then be "post-dated," which means you enter a date in the future to prevent it from being cashed until that time. If you have to wait until payday in order to withdraw a check amount, this can be useful.
Fill in the "Pay to the Order Of" line. This line is directly above the line where you typed the check's textual amount. You should enter the name of the person or business you are sending the check to here. Always use the person's or business's complete legal name because nicknames could pose issues when they try to deposit the check. Use the whole name rather than a nickname, such as "Buddy" if your friend John Smith goes by that name.
Include optional information on the "Memo" line. If you don't have any specific information to contribute, you can leave the vacant Memo line in the bottom left corner of the check blank. This line is frequently used to indicate the purpose of the payment: "Babysitting," "Groceries," or "Happy Birthday!" If you ever need to account for the check in the future, this will make it easier for you to recall what it was for. However, you can also include information in the memo line that the person receiving the check would need to file and handle it.
Sign the check. At the bottom right corner of the check, exactly across from the memo line, is the signature line. It's crucial that you sign the document precisely as it appears on the signature card you gave the bank when you started your account. You should inform your bank if your signature has changed considerably after you opened the account. If not, the individual seeking to cash the cheque can encounter difficulties doing so or might even face accusations of attempting to fake your signature.
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