Giving Money… With Paper?

Today will be a quick newsletter on how to write, endorse, and receive checks. Although the popularity of checks is diminishing with the rise of digital payments, several important parts of our lives still require a check. The DMV, renewing your passport, and some apartment complexes still require a physical proof of funds for payment. Here’s a step-by-step guide:

The Steps to Write a Check

Step 1: Dating the Check

In the top right corner of the check, you’ll need to write the date in which the check is written. This is important information for the bank.

Step 2: Telling the Bank Who to Pay

On the top middle line of the check, you’ll see “Pay to the Order of” with a long line extending the majority of the check. On this line you’ll write who you are paying. If it is an individual, write their name. If you are paying a business or department, write the entire business/department name on this line.

Step 3: Writing the Payment Amount Numerically

To the right of the “Pay to the Order of” line, you’ll see a box with a “$” to the left of it. In this box you’ll write the amount you’re paying in dollars. Ex. $1,890.00

Step 4: Writing the Payment Amount in Words

On the line below the “Pay to the Order of” line, you’ll need to write out, in word form, the amount you are paying. Using the same example above you’d write “one thousand eight hundred ninety and 00/100”. The last portion “00/100” refers to the cents in the payment. If the payment had 42 cents, you would write 42/100.

Step 5: Using the Memo Field

At the bottom left of the check you’ll see a line with the word “memo”. This line is optional although helpful when explaining the purpose of the payment.

Step 6: Sign the Check

At the bottom right you’ll see one final line for your signature. Sign your name on this line to complete the check writing process!

Receiving a Check? Here’s What to Do:

When receiving a check, the first thing you’ll want to do is pump your fist in the air with excitement like it’s 2012 again. Woohoo money!! But in all seriousness, you will need to endorse any check that is being paid to you. It’s very simple.

Endorsing a Check Paid to You

On the back of any check, you’ll see an area that says, “Endorse Here”. You’ll want to sign your name on the line provided so the bank knows you are the proper person receiving the money. Underneath the Endorse Here line will be different on every check but usually it’s a “date” line or “Check here for mobile deposit”.

Since most banks allow you to deposit checks through your phone, most new checks have some type of verbiage about depositing online. Depositing online is simple and straight forward. Login to your bank account, find the “deposit a check” tab, take a photo of the front and back of the signed check, receive money!

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