Writing a check needs skills that can be achieved by a deep study regarding this matter. Even though the global financial scenario has gone innovative based on technology including the internet, writing checks has become common. It is very common among many, including professionals and businessmen in the United States. Banking Association of America states that even in 2019, a considerable proportion of transactions are carried out through checks. While writing a check, there are things to be remembered and should be taken care of.
Mistakes that occur while writing a check lead to void checks and that check serves no purpose. Checks with errors will not be accepted by banks or any sort of nonfinancial institution. These types of checks with mistakes will be returned. It is a fact that high perusal is necessary while writing checks.
Another thing that should be kept in mind while writing or presenting a check is that checks are considered as strong negotiable instruments. The promise to the bearer should be kept by the person who gives the check. In other words, if a check gets bounced it becomes a legal complication.
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Write exact date while writing a check
While writing a check, it is must to write the date which should be written on the space provided in the upper right corner of the check. High attention has to be given to date while writing a check as it is a legal document. Be sure regarding the availability of the funds within that timeline. This is because checks can be presented the very next moment it is handed over to the bearer by the account holder.
Name of the receiver
While writing a check, the name of the recipient or the beneficiary must be written as it gives the aim point into whose kitty the amount will go. It can be a person or can be a company. Whoever it is, the name of the recipient should be mentioned without any faults while writing a check.‘ pay to the order of ’will be the word used there and as the name suggests, the same amount is paid to the receiver. It is just like the account holder is requesting the bank to pay the order of the receiver from his account. To be more secure, while writing a check, the name of the beneficiary will help instead of writing cash or any other words.
Another thing that should be taken care of while writing a check is that if the check is given to an individual, his/her first, as well as last name, should be mentioned. There are instances where instead of giving a full name people give his first name or nickname. Similarly, if the check is given to an entity, the full name of that organization should be mentioned.
Quote amount in digits
Write the exact amount on the check without any fault. Any mismatch if occur between the amount that is written on the check compared to the amount written in words, the checks will be returned. This is executed without any second thought by the banking authorities.
Amount in words without mistake
The person who writes the check should mention the amount in words with care while writing a check. The dollar session and if any cents are there, the amount will be rightly mentioned in dollars and cents separately . This helps to achieve uniformity with the amount written on the check. If it is written $20.50, twenty dollars and fifty cents should be written specifically.
Capture memo for future
This session is called the memo session and most people nowadays fill this session nowadays. This is regarding the purpose for which this particular check is given. It is also highly helpful while going through the accounting audit process and if any legal complication arises. Currently, it is seen that around 80% of the checks carry the memo details and have become a routing while writing checks. The purpose may vary such as rent, fees donation, and so on.
Signature is a must while writing a check
Last but not least, a check will not be valid without the signature of the account holder. It is put on the bottom left side of the check and banks will check for any sort of signature mismatches. Any checks with matching the signature as well as nil signatures will be returned by the bank. Some software which is for writing and printing checks helps to encrypt signature.