Making payment through checks is an organized way of receiving payments or settling debts or paying for services and goods. There are different categories of checks and these needs to be written in different ways.
- Writing out a Check for Rent
It is best to select black ink based pen for writing a check. Also, the pen used for writing check should include an ink that does not smudge. When you start to write the check, first ensure that the word “or bearer” is canceled out. After this is done the words “A/C Payee” should be written on the top left corner. This helps to prevent the check from being used as a bearer check by anyone in whose hands the check might fall. It is important to write the name of the person in clear, legible handwriting. When you are filling the amount of payment in words ensure that you follow the right numeric order; there is no requirement to write joining words like “and”. However, it is important to end the amount mentioned by the words ONLY. The amount, when written in numbers in the space provided needs to be ended with a slash and hyphen. Ensure that you end the process of writing the check by clearly signing on space where signatory text is required. Also, the date needs to be filled in since the transaction or validity of the check remains till a certain period of time as per the date mentioned on the upper right-hand corner. It is usually kept valid for three months from the date mentioned on the check.
- Filling in a Self-Check
In case you wish to withdraw money in an account you hold with a check, start by writing “Self” in the Pay space and do not miss filling out the date. The sign of A/C Payee is not required on a top left-hand corner in such checks. The amount can be put in words and then the number needs to be put in the right space provided. End the check writing by giving your signature. In such cases, the check should be off the bank account from where you wish to withdraw money.
- Safety Measures to Use
There are certain guidelines to follow to ensure that your check gets accepted for the transaction at a bank:
- Ensure that you do not cross out or try and make alterations.
- Use permanent ink so that the writing cannot be removed from the check.
- Check that you are using a check leaf that is valid.
- Do not sign and provide a blank check to anyone; signature, name, amount and date should always be mentioned.
- In order to cancel a check cross out MICR and write the words CANCEL across the space of the check leaf.
- It is best to keep an account of the checks issued by noting the same at the end of the checkbook, especially details like check leaf number, date of issuance, amount and to whom.
- Ensure that the check you are using is valid. With changing instructions and policies in banks, often checks that are kept in homes and office for too long might not be valid due to changes introduced in the more recent checks. These aspects need to be checked with your bank before you take out an old checkbook and sit down to write out a check.
- If you are writing a check with an advanced date, ensure that the party you are issuing the check to is aware of the condition and is fine with the term.