How to Write Out a Cheque
When handling money, whether for personal or business use, it is always wise to know how to write out a cheque. This is because a cheque is a legal document that ensures payment of a transaction between two parties. Anybody can become a signator of a cheque. Even a bank will be a signature if the cheque is in its safekeeping. The person writing the cheque, however, must be a financial agent who has been duly authorized to sign on behalf of a client.
Important Things to Know Before Writing a Cheque
If you are new to the concept of how to write out a cheque, the most important thing that you should remember is that it must be legally valid. Once you have learned how to read and write a cheque properly, you will need to learn how to sign one. While it is easy enough to just sign the amount with your fingers, this process is not recommended.
Learning how to write out a cheque means that you must use a regulated system of signatures. Most banks require that cheques be signed on security paper. Security paper must be kept at a single place, so that you will know where to find it should you need it for any reason. Some banks may also insist that the date of the cheque, along with the signature, be affixed to the face of the cheque. Having this information ready is helpful because you will need to make sure the cheque is done on time.
When learning how to write out a cheque, another important consideration is what to write on the date stamp. Most cheeses have an initial date of issue and a last date of payment. A good rule of thumb is to include both the initial date and the date of payment on your cheque. This will ensure accuracy, especially in the case of automatic payments.
When asking a friend or family member how to write out a cheque, you can also look into a paper pad or even your computer. The main benefit of using a pad is that you can write your cheque exactly how you want. Some people prefer to use their computer keyboard for this task. If you do use a pad, be careful to wipe your hands off before you input your data into the computer. You do not want to touch the sensitive information on the cheque.
Another benefit of using a pad or notebook is that you can input amounts onto the cheque that is not going to exceed the maximum amount allowed on the bank account. For example, if you have a debit card with $100 cash, you can put that amount on the debit card only. If you had money placed into an account with that same amount, you could use your debit card to write out how much to send to the bank.
There are many companies online that offer free cheque writing services. These services allow you to create cheques in just a few minutes and submit them to your bank quickly. Some companies allow you to use an automatic clearing house payment processor like Moneybookers to submit your cheques. This option is usually less expensive than actually writing out and mailing the cheques yourself.
If you plan on using the Internet to find answers to how to write out a cheque, it pays to know what you are doing. Know how much money you have in your bank account. If you know it, you can look up cheques printed from your bank. You may find that the amounts on those cheques are too small. If they are too small, you might consider a cheque calculator that will help you determine how much to write in each cheque.