How to Cash a Cheque
Verify the trustworthiness of the person writing the cheque., Make sure the check is made out to you., Check for any endorsement problems., Endorse the cheque.
Step-by-Step Guide
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Step 1: Verify the trustworthiness of the person writing the cheque.
If the person writing you the cheque is a close friend, you probably trust them to write a cheque that you can cash.
If you are accepting a cheque as payment from someone you do not know, confirm the following information:
Full name Home address Phone number Driver's license number Check with the bank the cheque will be drawn on to confirm that the person writing the check has an account with funds available to cover the check.
Many banks will verify the account the cheque is drawing from if you contact them. -
Step 2: Make sure the check is made out to you.
It is very important for your name to be written correctly on the cheque.
Banks can deny payment if the name does not match that of the person attempting to cash it.If you own a small business, different rules may apply.
Many banks will not cash a cheque made out to your small business.
They will deposit it to the business’s bank account instead.
If the check is made out to more than one person, all payees (the person or persons being paid) must sign the cheque. , All of the information on the cheque needs to be complete and accurate.
This includes the date, amount of payment, and signature.
If the information is invalid or missing, your bank will refuse payment on the cheque.
Check the date.
It is important that the date is accurate.
The date written on the cheque is the first date at which the funds may be withdrawn.
Also, many banking institutions have the right (but not the obligation) to deny payment after a period of six months has passed.Check the numerical amount and written amount.The numerical amount box is located below the date.
It represents the exact amount to be paid to the payee.
You must make certain that this is the correct amount you are owed and that it matches the written dollar amount located to the left of the box.If the written and numerical amounts are different, most banks will honor the written amount.Check the signature.
For the cheque to be valid, it must contain the signature of the owner of the account from which the funds will be withdrawn.
It is imperative that it is signed or the cheque will not be honored., On the reverse side of the cheque, there will usually be a line for a signature that says something like “Endorse here.” You must sign on this line before you can cash your cheque.Remember that if there is more than one payee
-- e.g., “Pay to the order of Jackson and Leanna Teller”
-- all payees must endorse the cheque.A check can be deposited into a joint account with only one of the joint owners signing the check.
Once the check is endorsed, unless there are written restrictions, the check becomes a "bearer" instrument so that anyone can cash it. -
Step 3: Check for any endorsement problems.
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Step 4: Endorse the cheque.
Detailed Guide
If the person writing you the cheque is a close friend, you probably trust them to write a cheque that you can cash.
If you are accepting a cheque as payment from someone you do not know, confirm the following information:
Full name Home address Phone number Driver's license number Check with the bank the cheque will be drawn on to confirm that the person writing the check has an account with funds available to cover the check.
Many banks will verify the account the cheque is drawing from if you contact them.
It is very important for your name to be written correctly on the cheque.
Banks can deny payment if the name does not match that of the person attempting to cash it.If you own a small business, different rules may apply.
Many banks will not cash a cheque made out to your small business.
They will deposit it to the business’s bank account instead.
If the check is made out to more than one person, all payees (the person or persons being paid) must sign the cheque. , All of the information on the cheque needs to be complete and accurate.
This includes the date, amount of payment, and signature.
If the information is invalid or missing, your bank will refuse payment on the cheque.
Check the date.
It is important that the date is accurate.
The date written on the cheque is the first date at which the funds may be withdrawn.
Also, many banking institutions have the right (but not the obligation) to deny payment after a period of six months has passed.Check the numerical amount and written amount.The numerical amount box is located below the date.
It represents the exact amount to be paid to the payee.
You must make certain that this is the correct amount you are owed and that it matches the written dollar amount located to the left of the box.If the written and numerical amounts are different, most banks will honor the written amount.Check the signature.
For the cheque to be valid, it must contain the signature of the owner of the account from which the funds will be withdrawn.
It is imperative that it is signed or the cheque will not be honored., On the reverse side of the cheque, there will usually be a line for a signature that says something like “Endorse here.” You must sign on this line before you can cash your cheque.Remember that if there is more than one payee
-- e.g., “Pay to the order of Jackson and Leanna Teller”
-- all payees must endorse the cheque.A check can be deposited into a joint account with only one of the joint owners signing the check.
Once the check is endorsed, unless there are written restrictions, the check becomes a "bearer" instrument so that anyone can cash it.
About the Author
Jeffrey Collins
Enthusiastic about teaching cooking techniques through clear, step-by-step guides.
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