When cash isn’t convenient, and a credit card isn’t possible, writing a check is often a convenient and satisfactory method of purchasing goods or services. A check is a promissory note guaranteeing funds availability and designates a specific person or entity to whom the funds are payable. Important Entries Familiarity with the entries on a check ease discomfort and speed the check-writing process: Pay to the order of: The “payee”-to whom the check is written. Ensure proper spelling and name form-capitalize when appropriate or use all capital letters. If writing the check to yourself, and you’ll be cashing it, write the word “Cash” on the payee line. Financial institutions recommend entering a solid line from the end of the payee name to the end of the payee line to reduce the possibility of the payee information being changed in case of a lost or stolen check. Date: The date when the check is written. Not all banks honor such additional entries as “postdated until” and “do not deposit until” or “void until.” Make certain the check will be honored and have sufficient funds to cover the amount. Numerical amount: How much is being paid to the payee on that check. [...]
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