Writing a cheque is a safe and easy way to transfer money.
While digital payment methods are increasingly popular, there are many situations where a good old-fashioned cheque is necessary.
The good news is that even if you’ve never written a cheque in your life, it’s very easy.
Just follow these steps.
Steps To Write a Cheque
1. Fill in The Date
This is simple.
Just always write the date on which you sign the cheque.
2. Fill in the payee
Next to “pay to the order of,” fill in the recipient’s name.
If it’s an individual, write their legal first and last name, in that order.
If it’s a business, write the business’s legal name as they use it to receive payments.
Do not use nicknames, abbreviations, or acronyms unless you are asked to.
Another option is to write “cash.”
Doing so enables the recipient to cash the cheque and receive the funds from your account.
3. Fill in the Amount of Money
Next to the “$” sign write the amount of money you want to send the recipient.
Write the number in numerals.
Do not use the cents sign and make sure you always include the number of dollars and a decimal followed by cents.
For example, write “$0.05” instead of “$.05” or “5¢”.
While it’s not necessary, you can also write the amount of money in words.
Just fill out the total number on the line below the recipient.
Include the cents as a fraction beside the “/100” on the right of the line.
4. Sign the Cheque
For your cheque to be cashed legally, it requires your signature.
Sign your name on the bottom right of the cheque.
Failing to do so renders the cheque invalid, meaning it cannot be cashed.
5. Write a Memo
The memo section also doesn’t need to be filled out.
But filling it out makes sense for a few reasons.
The memo section is meant to explain the purpose of the transaction.
Writing the purpose down is good for record-keeping and making sure the recipient understands what the money is for.
In some cases, it can also make tax deductions easier as the cheque is evidence of a deductible transaction.
Memos are meant to be simple.
Just write what the money is for.
“Rent payment,” “car repair payment,” and other simple notes will suffice.
6.Tear it off Your Cheque Book
Tear off the cheque.
It’s wise to keep records of your transactions.
Some cheque books come with another layer that includes a carbon copy of what you’ve written.
Those lighter layers are all yours and they’re especially good for record-keeping.
Tips To Keep in Mind When Writing a Cheque
- Write clearly and avoid bright colours. Dark ink works best. This helps ensure that the information on the cheque is clearly visible and cashable. If the recipient takes a long time to cash the cheque or if it gets wet, the colour will fade. Dark black and blue inks help ensure the information remains visible.
- Many blank cheques come with a blank register at the front or back. If you don’t have one, you can simply buy a register.
- If you want to use a cheque to enable employers to direct deposit money into your bank account, you can void a blank cheque. You can also void a cheque if you no longer intend to send the money but want to keep a record of it. To void a cheque, simply write “VOID” across it. Use dark, large writing that covers the necessary fields of the cheque.
Frequently Asked Questions
- How do you write cents on a cheque in Canada?
In the numerical section, write a value for dollars, even if it’s 0, followed by a decimal and the two digits for cents. For instance, to send 90 cents just write $0.90.
In the written section, the “/100” on the right of the field is meant for cents. So, to send $99.95 you can write “ninety-nine” and write “95” beside the /100.
- Can I cancel a cheque after giving it to someone?
You can cancel a cheque at any point between the time you hand it to someone and the moment they cash it. If they cash the cheque, you cannot cancel it with a usual stop payment.
To cancel a cheque you’ve written, contact your bank as soon as possible. Tell them that you want to cancel the cheque. You may also need to provide your intent to cancel the cheque in writing. So, write a request to cancel it right away.
Record the events surrounding the cancellation of the cheque. It’s normally best to let the recipient know you cancelled the cheque as well. It’s your responsibility to ensure you cancel the cheque legally and fulfil any of your payment obligations.