Check WritingMrs. Flowers Finance & Business Technology

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Check Writing

• In the U.S., you write a check using your checking account. You can write a check up to the monetary balance you have in your account.

• However, if you have overdraft protection, you may be able to write a check for a higher amount (normally fees will apply).

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Check Writing

• Bouncing a check (having a returned due to insufficient funds) is an offense in the United States.

• The merchant (to whom you wrote the check) may charge you around $30 to $35, and you bank may charge you another $25 to $70.

– These fees can add up for each check you write that goes over due to insufficient funds

• If the amount is large, the recipient may take legal action against you in court, and you may wind up in jail.

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Check Writing

• It is absolutely fine to write a check for small amounts, like $2.

• Most people in the U.S. carry little or no cash with them and pay with credit card or check.

• You can write a check to yourself by writing “Cash” on the payee field.

(when in the bank the teller will cash the check and pay you)

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Sample Check

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Date (1)

• The date format in the United States is Month then Date then Year.

• You can write it out in one of several formats, such as:

• 02/14/2011

• Feb 14, 2011

• February 14, 2011

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Date Cont.

• You can post date some payees

• What does post date mean?

• Post date = to put a date on a check that is later than the actual date

• If sending a check that has a due date in the future you can date it for the future date and the company will place it in the bank on that date

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Payee (2)

• Write the name of the person or company to whom you are paying money with the check.

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Amount in Numbers (3)

• Write the amount in numbers

• Example: 127.89

• Note that the $ sign is already pre-printed

• Therefore, you do not have to write it again

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Amount in Words (4)

• This will be the same amount that you wrote in the dollar box.

• One hundred twenty seven and 89/100

• *This is the amount a bank will go by if the amounts are different

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Amount Cont.

• Many shops, especially larger shops like Walmart and Winn Dixie, will allow you to write an amount over your store total

• This can be a way to get cash back on your transaction for no fee

• *Typically this amount is no more than $20 over your total

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Memo

• An optional description of the nature of the payment. You can write something like “phone bill”…. “rent”…. “guitar lesson”

• If you have an account number with the payee, you should mention that account number here

• That way if the check and payment stub are separated at the company, they can keep track of whose account to apply the payment to

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Memo (5)

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Signature (6)

• Your signature, the same way you wrote it when you opened your bank account

• If you have a joint account, and if there are multiple signatories, any authorized person can sign

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Check Number (7)

• Each check has a different check number. Please note that the check number appears twice on the check – once at the top right corner and once at the bottom center

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Routing Number (8)

• This is the routing number of the bank that facilitates electronic clearing of a check

• This number will be the same for almost all account holders at your bank

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Account Number (9)

• Your bank account number and is the same on all your checks

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• When there is more than one tenant on the check, what did we learn about “and” & “or” in regards to joint tenants?

• “And” is used for joint tenants in common where each person on the check must sign the signature line of the check in order to be a valid check. “Or” is used for tenants with rights of survivorship where anyone on the check can sign as a single signer

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Filled Out Check

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Practice

• Check #1: Walmart buying groceries for a total of $225.82 and you want $20 cash back and it is today’s date.

• Check #2: Paying your rent payment that is due May 1st. You live in Regal Pointe Apartments. Post date the $850 rent payment for May when it is due.

• Check #3: You forgot your ATM card and are on vacation and stop in your bank “Wachovia Bank” and want to cash a check for yourself in the amount of $100 using today’s date.

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