Although today most transactions took place through online transaction systems, most parts of the globe still use checks. In this article, we will go through its different forms and how you can easily write the check step by step.
History of check
Checks are in for many years but do you exactly know about the first check that was introduced? The first check was made in the 17th century 1762 by British banker Lawerance children. Some studies show that the checks were introduced roughly after 200 years with the advent of the bill of exchange. No doubt there are lots of methods introduced in the modern age but checks are not completely demised. Check is actually:
“the piece of paper or bill that you order the bank to transfer the money to you or your other party’s bank account.”
What are the Different Types of Checks?
Checks have been used for many years. But is all the checks are same? No there are many types of checks are present for different types of checks.
Bearer Check:
The bearer check is the safest type of check that is issued to you by the bank. In this type of check, you order the bank for the payee and they make the payment to you like it is the check that you carry to the bank on every month’s first date to withdraw your salary or pay. This check is paid to the person whose name is printed on the check front or who carries the check.
Order Check:
This is the second type of check-in list. The bearer and order check is the same but slightly different in the case of a bearer check the bank needs the identity of that person but in order, to the check bank doesn’t need any verification of the check carrier or bearer.
Crossed Check:
This form of check is considered also a safety check because it can only be cashed at the payee bank. In crossed check the person who issues the check must write the a/c payee along with to parallel bent line on the top left corner of the check.
Through this form of a check, the payment is only transferred to that particular organization or person whose name is mentioned as the payee.
Open Check:
This one is also known as an uncrossed check as it doesn’t have crossed lines. Also, this check can be cashed at any bank like if you made a payment to someone through an open check, then he/she can cash that check either in his own bank branch or at the same branch as the check was. The payees can also use it as a payee for another person. The requirement of this check is to sign it on both sides front and back.
Post-Dated Check:
It is the kind of check that is issued for a specific date or you may say that before the date. The bank will never make payment to payees until that date past on. In simple words, this check can be cashed after the date mentioned on it.
Stale Check:
It is the type of check that is quite old in its issued date. Normally a check which is 6- to 3 months old is considered as stale check. The duration may vary in business terms. in short stale is the check that passed its validity date.
Traveler’s Check:
This check doesn’t have an expiry date. It is mostly used by travelers as it can be cashed in any other country from your country in any bank branch and also in that country’s currency.
Self-Check:
Self-check as obvious by its name is the check for yourself through this check the can cashed check for his or her own self. This check has the word “self” as the payee place. The bearer and self-check do not need identification from the bank.
Banker Check:
The banker check has a limitation or validity until three months. It is the kind of check which is issued to the person within the city to another person by the account holder but the check will be assigned by the bank itself.
Blank Check:
You may hear about this check before. It is the kind of check that is signed by the account holder or drawer to the organization or person without the amount mentioned on it. This check will only contain the signature.
Note: payees is the person or organization who received the payment or amount.
What are the methods or ways to write checks properly?
After discussing the types of checks let’s check out how you can properly and correctly write or signed the check and what you should write to make it acceptable for the bank.
Date section:
The first and most important part that you write must is the date along with the month and year. This section is located in the top right corner of the check. It is important as a bank must have a record that when you withdraw money or write a check.
To whom this check is for:
The very next step is to write the person’s name or organization’s name to that you are going to make payment. Some bank allows you to write the word “cash” but it is quite risky in term of losing the check.
Amount in numeric and words:
There are two portions or sections where you must write the proper and valid amount you must know the range of your account balance before mentioning the amount. In one section where the box is mentioned, you must write the amount clearly in numeric form, and on the bar where the term mentioned “write the amount in words” write the same amount in words.
Signature:
A signature is the most important part of the check it shows that you agree to the above mention information and also you are agreeing for paying the amount or withdraw. The signature must be the same as you mentioned on the form when you were opening the account.
The instructions you must follow while writing the check:
- Write down all the words and digits clearly.
- Write the word or phrase “only” at the end while writing the check in words.
- Avoid cutting or overwriting.
- Mentioned the correct amount and date.
- Write the date according to the mentioned format on the check.
- Use the same signature each time writing a new check.
- Write all the fields and re-check before submitting it.
What is the safest way to write a check?
You must follow some precautions while writing the check it is important to save your account balance. Always write the check with the pen as it is hard to remove. Fill in the data, and name of the receiver before signing the check. The most important thing doesn’t leave extra space or room in the amount area, especially in the numeric amount section.
How to Write a Legal Check? (Updated 2023)
Follow the instruction then you will be able to write a legal/perfect check and no one reject this:
- Enter the date (Write a date that you want to withdraw)
- Write the amount in numbering (Example: $1000)
- Write the amount in words (English or any local language), (Example: One Thousand Dollar Only)
- Write a one-time Signature on the front and two times on the back of the check.
Hope you got it, here we mentioned an image of a local check example where you can easily understand this!
Final Verdict
This article is about the bank checks how bank checks are started and what are different types of it. Also, the method of writing the check is also mentioned in this article as want you should keep in mind while writing a check.
FAQs
The crossed check is relatively considered the safest check among others as it only withdraws from the drawee’s bank and the name is also mentioned on the check with lines.
Well according to our search, the bearer check is one of the unsafe checks as it required less identification or requirement for withdrawal from the bank.
