How To Read a Check

Paper cheque usage is becoming much rare, and you’re not unsocial if you don’t cognize really to publication a check. Luckily, it’s not excessively difficult, and location are only a fewer parts of a cheque that mightiness require a spot much of an explanation. 

Paper checks are declining successful fame compared to different methods for illustration mobile payments, money transportation apps, and ACH transfers, but they’re not dormant yet. Even if you’re not a fan, location are times erstwhile you mightiness still request to usage checks, specified arsenic if you’re mounting up nonstop deposit pinch your employer. 

Here’s a useful guideline to nan different parts of a cheque you request to know, starting astatine nan apical and going clockwise astir nan check.

How To Read nan Front of a Check

Payee Line

This is who nan cheque is being made retired to—i.e., nan personification aliases business that is receiving payment. After you’re done penning nan name, you should tie a statement to nan extremity truthful that personification can’t constitute their ain sanction later.

Date Line

The day nan cheque was written. You tin postdate checks by penning a day successful nan early that it tin beryllium cashed. But, unless you specifically petition your slope to grant that date, nan cheque tin beryllium deposited anterior to it, and each checks are processed arsenic soon arsenic they’re deposited. Some banks complaint a interest for this notice.

Bank's Fractional Number

This number serves arsenic a backup to nan MICR line successful lawsuit nan cheque is damaged (the MICR statement is nan group of numbers printed astatine nan bottommost of nan check). It allows nan slope that’s cashing nan cheque to place which financial institution to propulsion nan costs from, and it tin besides beryllium utilized to look for cheque fraud. 

Dollar Box

The personification penning nan cheque will participate nan dollar magnitude successful 2 places. Here, successful nan dollar box, nan magnitude should beryllium written successful number format, for example, “$25.00.”

Signature Line

A cheque isn’t valid to deposit unless personification has signed it connected nan signature line. This signature authorizes a financial institution to rate nan cheque utilizing costs from nan cheque writer’s account. 

Check Number

You’ll request a measurement to way each cheque individually, specified arsenic if you request to spot a stop costs order to forestall a cheque from being cashed. The cheque number performs this role. Although cheque numbers are often recovered astatine nan top-right of a check, sometimes it besides appears arsenic nan 3rd number successful nan MICR line, for illustration successful nan illustration above.

Account Number

The relationship number is nan 2nd introduction successful nan MICR line. As nan sanction implies, it identifies nan circumstantial relationship that nan money should beryllium pulled from. That’s right—you’re handing retired your bank relationship number pinch each cheque that you write. Be alert that this tin travel backmost to haunt you later successful nan shape of fraud aliases personality theft.

Bank Name

When personification cashes a check, nan receiving slope will request to cognize which other bank nan costs are coming from.

Routing Number

This is nan first number successful nan MICR line. The routing number allows computers to quickly place which slope to interaction to retreat nan funds. Each slope only has 1 routing number, which will beryllium printed connected each of nan checks that it issues to customers. 

Memo Line

You tin adhd an optional statement to important checks to thief you retrieve transaction specifications later, specified arsenic if you’re making a down costs connected a car. 

The personification aliases business you’re penning nan cheque retired to whitethorn besides require you to adhd a statement successful immoderate cases. The IRS typically requires you to statement what nan cheque costs is for connected nan memo line, specified arsenic “2024 income taxation payment,” for example. 

Check Amount

In summation to nan dollar box, nan cheque writer will request to constitute retired nan dollar magnitude of nan cheque successful words. Cents are still written retired arsenic numerals, successful fractions of a dollar. Continuing our illustration of a cheque for $25, you’d constitute “Twenty-five dollars and 00/100.” You’d past adhd a statement to nan extremity of nan cheque magnitude section, which prevents anyone other from adding immoderate other digits aliases zeroes to nan cheque amount. 

Personal Information

The personification receiving nan cheque and nan slope cashing nan cheque some request a measurement to interaction nan personification who wrote nan check, if necessary. That’s why your sanction and address, and sometimes your telephone number, look connected nan check. This is particularly important because checks are processed aft they’re written and errors whitethorn beryllium introduced, dissimilar instantaneous costs methods specified arsenic debit cards. 

How To Read nan Back of a Check

Security Screen

The information surface is an added information characteristic connected nan backmost of astir U.S. checks issued by banks. It’s a sheet of faded coloring and wording that’s designed to beryllium difficult to people connected a location printer, akin to really watermarks are used.

Endorsement Area

This is wherever nan personification who’s receiving nan cheque will motion (or endorse) it erstwhile they deposit it into their account. It’s important that nan correct personification signs it—the relationship holder—and to travel immoderate circumstantial instructions from your bank. It’s communal for banks to require you to constitute “for mobile deposit only” if you make a mobile deposit done your bank’s app, for example.

Security Details

Check printers adhd a typical container to nan backmost of nan cheque that outlines nan check’s information features, specified arsenic nan information screen. This container is for illustration a guideline to that peculiar check’s information features, which you tin look for to verify nan cheque isn’t fraudulent. 

It’s Still Important to Understand How Checks Work

As personification who helps caller assemblage graduates commencement disconnected connected patient financial footing, Sara Young sometimes fields questions astir really to usage checks. “It's not thing that's very frequent, but nan mobility has surely travel up.” She teaches her clients really to publication a cheque and capable it retired decently truthful their transactions spell done smoothly. 

It’s particularly important to cognize really to constitute checks, fixed really they are often utilized these days. “Personally, my daycare has required insubstantial checks until very recently,” says Young. “From what I've heard, insubstantial checks are still communal successful nan childcare industry, arsenic good arsenic school-related organizations, sports teams, lodging transactions, and things of that nature.” 

Frequently Asked Questions (FAQs)

The Bottom Line

Checks are handy—and sometimes necessary—ways to behaviour galore financial transactions. Learning really to publication a cheque is not hard, and it allows you to amended understand really checks are used, particularly how to constitute a check and watch for cheque fraud. Together, these are coagulated skills to person successful your financial toolkit.