Creating a Check: A Step-by-Step Guide in 6 Easy Measures

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Even though modern financial practices such as online banking, mobile payments, and digital wallets have become the norm, there are still times when the tried-and-true methods of handling cash are preferable. Money Orders or Cheques But don't let that scare you. It's easier than it looks to write a check. How to Make a Cheque Out

Cheque-writing instructions in 6 easy steps

If there is a box or line labeled "Date," write the current date in the upper right corner. It's important to match the date on the check to the date you signed it.

In the space provided for "Pay to the order of," type the name of the recipient. If it's a person, include their full name. If it's a business, get the official name and only use acronyms if told to. In addition, you can write cash here, which allows anyone to take the cheque to a bank and withdraw the money from your account.

3. Enter the figures in numerical format. The amount to be deducted from your account should be written in numerals next to the dollar sign ($). Regardless of whether the amount is less than $1 or not, you must still write $0. Don't forget to specify the exact number of cents you want to withdraw, even if that number is zero. To avoid confusion, please use 2 decimal places instead of the cents symbol (). To indicate fifty cents on a check, for instance, write $0. 50, not $ 50, $ 5 or 50¢

4. Enter the numerical value into words The dollar amount, including cents as a fraction like 25/100 or 89/100, should be written out in words on the line beneath the recipient, even though doing so is not required by law. Specifying the withdrawal amount in this way is helpful.

When writing a check, the fraction is sometimes pre-printed with a blank numerator, allowing you to simply fill in the cents. If the amount is less than a dollar, write $0 before the cents. If the word "dollars" appears on the cheque already, you won't need to write it. If not, you need to

If you want to prevent anyone from changing the dollar amount you wrote down, it's a good idea to draw a horizontal line from the words representing the dollars to the cents.

Five, put your signature on the money order You may sign your name at the bottom right. There will be no effect unless you do.

Optional Step #6: Write a note. Indicate the purpose of the payment, such as rent, reimbursement of expenses, or a security deposit. There's no need to include this, but it might be helpful for the recipient to be reminded of the cheque's intended use.

Please use the sample below as a guide for how a completed check should look. Bear in mind that you're not required to fill out the memo field. Do not forget to include your signature on the cheque, though.

Sample of a completed Canadian cheque

  • Example cheque with cents

  • Example cheque with 100 dollars

  • Example cheque_with 1000 dollars

Next steps after completing your cheque's required fields

Cut the cheque out of the envelope and file it away. The top copy of the cheque should be torn off of a carbon-copy cheque book and given to the recipient. Keep the lighter of the two copies.

Not all chequebooks include carbon copies, so if yours doesn't either, it's important to record all of the relevant transaction information in a cheque register. Your chequebook might have a blank register in the front or back, or it might have stubs attached to the cheques that stay in the book after you tear them out. If not, a register can be purchased independently.

Take care to avoid any confusion in your writing. Use standard black or blue ink instead of any other color when writing. This aids in making sure the information on the cheque can be read even if the writing has faded or if a digital image of the cheque has been scanned.

Creating a "null" or "void" check.

Make sure no one can cash a cheque and take money out of your account if you wrote the wrong amount on the cheque or if you are just giving the person the cheque to verify your bank account information. To do this, simply write the word "VOID" across the face of the cheque. Use big, legible letters, and fill in all the check's most important fields.

Sample of a VOID Canadian cheque

Methods for self-paying bills

By filling in your own name in the "Pay to the order of" field on a cheque, you can transfer funds between your own accounts. It is necessary to endorse the cheque by signing the appropriate field on the back of the cheque before depositing it.

What happens if I make a typo on a cheque?

However, if you (1) cross out the mistake with a single, horizontal line, (2) write the correct information above it, and (3) initial the change to indicate your approval, the bank is much less likely to reject your cheque.

When the error is more serious than simply writing the wrong amount on the line, an initialed correction may not be sufficient. The best course of action would be to cancel the cheque and issue a new one.

Sample Canadian cheque with corrected mistake

Check cashing procedures

The fact that only the payee can cash the cheque makes it a more secure payment option. However, if you make a check payable to cash, the money could go to anyone, whether or not you want that to happen. Because of this, making a check payable to cash is frowned upon.

However, here is how to write a check payable to cash if you find yourself in a bind:

  1. Date today's date in the top right corner of the cheque.
  2. Enter "Cash" under "Pay To The Order Of."
  3. Type the monetary amount in the box next to the $ sign.
  4. Fill out the dollar amount in words on the Pay To The Order Of section's blank line.
  5. Feel free to explain your need for immediate cash in the "Memo" section.
  6. Bottom right corner of the cheque has a space for your signature; please use it.

Example cheque payed to cash with 100 dollars

Safeguarding your cheques: some helpful hints

As a rule of thumb, online transactions are safer than paper checks. If you absolutely must use a check, though, here are some tips for keeping your money safe:

  • Use a pen and paper. Anybody can alter the cheque's amount or payee if they use a pencil.
  • It's a good idea to check in on your bank account balance on a regular basis to make sure no unauthorized transactions have taken place.
  • Make sure all of the information is correct before signing the cheque. Someone with access to a blank check can spend as much money as they like out of your account. You should bring a pen with you even if you aren't sure of the payee or amount to write it down.
  • If you don't want anyone to be able to change or add to the blanks on your cheque, draw a line through them.
  • To the best of your ability, maintain a consistent signature. In this way, discrepancies in forged signatures can be more readily detected.
  • You should avoid having your cheques paid to cash because they can be cashed by anyone.
  • You should destroy any unused cheques, such as those from a closed bank account.

Now that we have online banking, we can avoid having to write checks entirely. Paying bills and transferring money is quick, simple, and paperless with this method. Approximately 88% of Canadians now use online banking. In order to help you select the most suitable online bank account provider, we have compiled this comprehensive guide to digital banking.

The meaning of the cheque number

Sample Canadian cheque showing what cheque numbers mean

If you have a cheque, the numbers on it are like coordinates to your bank account. The recipient can then "discover" your funds and take out the amount written on the check. All the recipient has to do is deposit the cheque into his or her bank account; the rest is handled electronically through the clearinghouse and settlement systems in Canada.

  • The cheque number corresponds to the cheque's position in the cheque book (the first cheque will be numbered 001, the second cheque 002, and so on). )
  • If you know the exact branch where your account was opened, you can use that information to determine the transit number. It's analogous to the 9-digit routing number used by American banks, though transit and routing numbers are not the same thing. In order to avoid any potential for confusion, online banks with no physical locations may issue the same transit number to all of their customers.
  • Whether you prefer to refer to it as a bank number or institution number, it will always be the unique identifier for your bank.
  • Your individual account is represented by a unique account number.

Investigate your options for transferring your funds.

Checking account comparisons

Online or through a mobile app payment systems are typically the most convenient options. However, if you must stick with the old school method, a check is easy to write. To top it all off, some banks will even print you a check if you don't have a chequebook on hand.

Do you want to learn more about checking accounts and their options? Use this comprehensive guide to checking account comparisons to make an informed decision.

  • If the amount of the check is $1,500 or less, it will be held for no more than four to five days. The maximum hold time for checks over $1,500 is 7–8 days. Checks, however, typically clear earlier than that.

    It's more likely that a teller will process your transaction quickly if you have a solid history with the bank.

  • You must endorse (sign) the back of a check before depositing or cashing it. The next step is to either physically deposit it at your bank or do so digitally through a mobile banking app; however, not all banking apps currently support digital deposits.

    In order to make a mobile deposit, you must first launch your bank's mobile app and then find the option to deposit a check. Simply proceed as directed! Typically, you would need to photograph the front and back of your cheque, as well as enter information such as the amount being deposited and the account you want the funds to go into.

    After this is completed, you can send in the paperwork and photos to have your check issued.

  • There is a 6-month stale date on all federal and provincial government checks in Canada, and regular checks are invalid after that time as well, per Payments Canada, the government agency in charge of the clearing and settlement of financial transactions across the country. Banks are not required to cash checks that have passed their expiration date, but may do so if they choose to.

    However, according to Payments Canada regulations, money orders, bank drafts, and federal government checks are never past their expiration date.

  • When it comes to whether or not a cheque's name must match the name of the account holder depositing the cheque, Payments Canada, the government agency responsible for regulating the clearing and settlement of financial transactions in Canada, takes no official stance. The procedures of each bank will determine this.

    When you present identification showing that you are the same person, most financial institutions will cash a check written in your maiden name. You'll need photo ID, so bring your driver's license, passport, and maybe even your marriage license.

  • Just enter the full amount, cents and all, in the numeric box (for instance, "$1452"). 73") After that, enter the dollar amount in the text box and the cents on the line that says "/100 Dollars" on the cheque. 1,452———73/100′′ is an example of such a notation. For examples of our cheques, please see above.

  • If you'd prefer to be paid via direct deposit instead of a paper check, you can create a void cheque by crossing out the account number, memo line, and all the other main fields and writing "VOID" across the top in large, legible letters. Also, if you do your banking online, you might be able to print out a void check to give to your boss, landlord, or whoever else requires one.

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