How to Write a Check

A check is a written, dated and signed document that instructs a bank to pay a specific amount of money to a person or entity. Banks then typically process the check to the merchant once it clears. This process can take a few days to fully process. Checks are typically used to make payments for goods or services, or to transfer funds from one bank account to another.

Writing a check is pretty simple. First, fill in the date on the top right hand corner of the check. Then, write the name of the recipient, the numerical amount of the payment and spell the numerical amount in “written words”. Make sure to include any cents as a fraction (40/100 for 40 cents) and then just sign the check in the bottom right hand corner.

You should ALWAYS draw a line after the written numerical words, to prevent more words from being added. For example, if you write a check for “One Thousand” someone could add “Nine Hundred” after the words to make the total amount “One thousand nine hundred ($1900 instead of $1000)”

Checks can be safer than using cash, as they provide a record of the transaction (via the banks’ ledger) and they are much more easily traced if lost or stolen. Most often, checks are written and withdrawn directly from a checking account. However, there are some potential risks to be aware of when using checks. For example, someone could forget your signature and use the check to steal money from your account or a merchant could alter the amount of the check and pocket the difference. To reduce the risk of this happening, it’s important to follow some best practices when writing checks. For example, you should always keep track of your checkbook and make sure you have enough money in your account to covered all withdrawn amounts.

Endorsing a check is just signing the back of the check to indicate that you accept the payment and agree to terms of the deposit. Moreover, whenever you deposit a check, endorsing it will help you keep track of the deposit since you would not have endorsed the check if you did not already deposit the check!