Knowing how to read a check heightens check cashing safety and helps avoid costly mistakes. Because it’s a simple process, many don’t fully read the entries, overlooking errors and omissions. What Should Be Noted Whether it’s a personal check, a business check, or a payroll check, common elements must be present and legible. Payee: To whom the money will be paid. If the bank teller cannot read who the payee is, he or she is not obligated to cash or deposit the check. Note how the entry name is spelled; it’s that spelling that must be written first on the back of the check when cashing. Date: When the check was written. Because no check is valid indefinitely, the time clock begins on the date it was written. Financial institutions are not required to accept qualifying entries to cashing date, such as “void until” or “post-dated until” or similar entries. Amount: The currency should be locally legal tender. In the United States, use the dollar sign; in Great Britain, use their currency sign that looks like an italicized L with a small horizontal line through it. The payable amount should be numeric. Written amount: A safety measure to ensure the [...]
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