What is a check?

By Admin Published on October 10, 2022Budgeting Tips and Tricks

A check can be defined as a check-dated and signed financial instrument which is written in order to draw or transfer funds from a specific bank account to another person or bank account. A specific amount of money is written on it by the one who owns the checkbook and the amount. The person or company who is paying the amount or transferring the monetary funds is called the payor or drawer and the person to whom the check is given is called a payee. In this entire transaction, there is a third person through which all this is done, and it is called the drawee, the bank involed.

Any check can be used for two things, you can either cash it or you can deposit it in your bank account. Like if you are an employee you present the check to your bank account and the bank draws the amount written on the check from the payor’s bank and transfers the amount to the payee’s account. Checks are maybe written against a checking account but sometimes they can also be used to negotiate funds from one type of bank account to another like from savings or another current account.

In some countries, the word is spelled differently in Canada and England it is spelled as “cheque.”

anatomy of checks
 

Key Features of a check

Not all checks look exactly the same however, there are some general features that you will find in all checks. You will see that name and other information of the person who is writing the check is mentioned at the top left corner of the check. The drawer’s account is also mentioned on the check.

  • The most important information that needs to be added by the payor on the check is as follows.
  • The date on which the check is written is mentioned in the top right-hand corner. You can see it on the infographic.
  • The payee’s name is to be written in the center of the check usually indicated by the phrase "Pay to the Order Of."
  • The funds to be paid or transferred are written in the box adjacent to the payee’s name.
  • The same amount is to be mentioned in words as well, this is just to reconfirm the amount written in figures, and it is written on the line under the payee’s name.
  • The signature of the payor is done on the bottom right of the check-in text box. If there are no signs then the check is not considered valid.
  • You will find a memo line at the bottom left of the check underneath the drawing bank’s information.


You may also find a series of coded numbers at the bottom of the check under the memo line and the payor’s signature line. These are the bank’s routing number, the check number, and the payor’s account number. You will find an endorsement line, this line is for the payee’s signature.

The anatomy of a check is shown in the infographic that tells about the elements of a check. For checks and checkbooks of different kinds and customized checks, you can check out Checks Unlimited. This is an online store that sells checks and checkbooks that are very different from conventional bank checkbooks. And you can also use Checks Unlimited Coupon Codes for discounts.  

You can also find Checks Unlimited coupon codes and related products at ShoppingSpout.us, it has a range of online stores that sell checks and checkbooks.

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