What is a check?
Check is a one of the payment instruments and although it should be paid when it is given to the bank it is used as post-dated in the market. It continues to be widely used due to the form conditions it carries and protective provisions in the law. As a result of the increased using of the credit cards, the importance of the checks has decreased.
How to write a Check?
When you decide to use a check for the purchases; you should know how to write a check correctly. You should follow the some steps and complete your checks for using. Below, you can see some points about a check’s writing rules:
- You should write the check date in the upper-right corner of paper. There is a blank line here
- Write the recipient’s name
- State the amount at the right side of the check
- You should write the monetary amount under the “Pay to the Order” title –line. Write the amount in the word form.
- There is a signature part in the right bottom part. Sign the check.
- You may state the reason for your payment at the “for” line…This is not a necessary information.
What are the usage areas of a check?
People in commercial life use checks as one of the payment methods. It is not commonly used as the past because of the credit cards. But you don’t have to be in a commercial life for knowing a check; most people have more or less information about checks. In the time bargains, checks are widely used. Even if you write your check in daily date, you may have to wait at least 2-3 days to collect the check. You have to wait longer in the clearing checks. You may use a check as a payment instrument or in buying /selling goods and services. The usage areas of a check may vary from country to country. For example in US; people may use a check for the most noncash payments. If checks are handled appropriately, trading becomes easier.
The points to note in writing a check
A check is a legal document so there are some important details you should take care of…Below we are listing some of the key points:
- A check must be in accordance with the regulations and conditions. So, you have to complete the information in a check. Be careful for the date, place, account information, signature etc…
- It is also important that you have to the check amount in your accounts. Otherwise, your check will be a NFS check.
- Checks are very important for your reputation through your commercial life.
- The recipients must control the information in the checks. Are there missing information? The amount and the maturity should be reviewed.
As a result; it will be useful for you to know how to write a check and pay attention to the important points.