how to write a check

Although it has lost its popularity for a long time, being replaced by payment cards, in some countries it is still a popular means of payment. What is a check and what should you know about it?

How to write a check

It is mainly a means of payment because it is transferred instead of money when purchasing goods or services. It is not a type of money! It is a security addressed to the bank by the exhibitor, which contains an instruction to pay the amount specified on it to the bearer or authorized person, from the funds at the bank’s account holder.

The check must contain at least:

  • the name ‘check’ in the text of the document itself, in the language in which it was issued;
  • unconditional order to pay a specified sum of money;
  • name of the person who is to pay (drawee);
  • payment location;
  • date and place of issue of the check;
  • signature of the check issuer.

check writing

source: pixabay

Types of checks

Unfortunately, there are many types of checks in business transactions. What is the difference? The types of checks according to various criteria can be divided according to:

determination of the resident:

  • personal check – contains the name of the resident, the bank is required to identify the person who wants to cash the check when making the check;
  • bearer check – in this case, the bank also has a person who wants to cash the check, but there is no obligation to check whether the person is its legal owner;

form of trading:

  • cash check – on its basis, the bank is authorized to withdraw cash in the amount that appears on the check, debiting the account of the check issuer;
  • settlement check – authorizes the bank to debit the check issuer’s account in the amount for which the check was issued and to credit the check’s account with this amount. The check is described, ‘for settlement’, ‘transfer to account’ or ‘transfer to account’
  • confirmed check – at the request of the check issuer, the bank can confirm the check by reserving the appropriate amount to cover the issuer’s bank account;
  • check circled – on this type of check are placed two parallel diagonal lines or on the front side, it has limited circulation. The payment is made only to another bank or a person indicated by the client in the contract with the bank.


The exhibitor is the natural or legal person who issued the check. A resident is a person for whom a check has been issued.

When participating in the check turnover, there are a few important things to keep in mind. First of all, when you receive a check, make sure that the check issuer’s signature matches the signature specimen card deposited with your bank. In the event of non-compliance, the bank may refuse to cash the check. Secondly, when you receive a company cash check, ask the issuer where the company’s bank branch is located, because only in this branch will you be able to cash your check. This rule does not apply if you receive a confirmed check that you can cash in at another bank.


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