A check has a lot of personal information printed on it, and you should be very judicious in who you write out a check. If you make a mistake while writing a check, “void” it and start over. Voiding a check means that the check will not be able to be processed subject to change for payment. To void a check, cross out any part of the check that is filled out, and largely write “VOID” over the entirety of the check. This will ensure the check can’t ever be used, and then you can make your payment using a different check.
Incorrectly spelling the name of the person, organization or business—or leaving off part of a payee’s name—could result in your check being returned. When writing a check to the IRS, you’ll need to include the standard check information on it and some other required information. You must include your name and address, daytime phone number, Social Security number or EIN, the tax year and the related tax form or notice number. Refer to the tax form or contact your tax professional or the IRS for the correct address to send the check. The cost of checks varies depending on where you order them and whether you go with a basic personal check or a more personalized check design.
However, a bank may place a hold on some of those funds if the check exceeds $5,252. It can also place a hold on the entire amount if it has a reason to believe the check will not clear. The check bounces because it cannot be processed, as there are insufficient or non-sufficient funds (NSF) in the account (the two terms are interchangeable). A bounced check usually results in a penalty fee for the payor. Another type is a payroll check, or paycheck, which an employer issues to compensate an employee for their work. In recent years, physical paychecks have given way to direct deposit systems and other forms of electronic transfer.
Make sure that all checks are properly signed and to communicate with your bank about their policies on check handling. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all available deposit, investment, loan or credit products. So the little rectangular slips of paper press on, even as digital payment methods like Venmo and Zelle have achieved verb status — just Venmo me!
This step isn’t mandatory, but it’s a good idea to fill in the memo (short for memorandum) field at the bottom left of the check. This is where you can include a note to remind yourself or the payee about the reason you’re writing the check. If you’re paying a plumber to fix your sink, you might note “Fix leaky kitchen sink.” If you want to make a withdrawal or transfer funds between accounts, you can write a check to yourself. Alternatively, you can address the check to “Cash.” Be careful if you do this. Once written out to “Cash,” anyone who finds the check can take it to a bank or financial institution and receive the check’s value in cash.
You then need to write your initials on any modifications you have actually made. There is no guarantee your check will be legitimate if you attempt to distribute your check, so it is best practice to start with a new check. You do not want to make the mistake of writing $1,000 for the payable written amount and then filling in $100 for the numeric amount. Banks are consistently returning checks because the amounts are different.
You’ll love how old timey it feels to write out a number using words. Other checking account fees can include a monthly service fee, a per-check fee (a charge for every check you write), a check printing fee, and returned deposit item fee. A returned deposit item fee is a fee charged when you deposit a check in your account that bounces. Checks can be used to make bill payments, as gifts, or to transfer sums between two people or entities. They are generally seen as a more secure way of transferring money than cash, especially with large sums.
It’s best to make a note of the payment while it’s fresh in your mind. “When you go to write a check, you’ll first look at the empty fields on the check itself,” says DeLoyd. It may sound pretty easy, but it can be a little daunting if you’re new to the process.
The upper-left corner of a check typically shows personal identifying information about the account owner, and it is almost always pre-printed on checks. Your printed check can be returned if your check looks like it has been customized or changed. This includes utilizing numerous styles of handwriting, inks in various colors, write-overs, and scratching something out. Even if you have actually just made a mistake, your check might appear suspicious. Cross out your error if there is a mistake you need to correct.