Basic Information about Checks You Need to Know
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If it is your first time to receive a check and use the services of check cashing company, you will find it beneficial to be acquainted with the terms related to checks to cash activities. Why is this so? It is to speed up the encashment process so you do not have to ask many questions from time to time when a staff will ask you about the face value, due date, signatory, and many others. So read on to learn more about this process.
What is a Check?
It is a signed, dated, and written instrument which contains an order from the check issuer that directs the designated bank to pay the holder with the amount indicated in the check. The money is taken from a bank’s checking account. It is a legal bill of exchange without actual exchange of money or as a substitute for legal tender or currency.
Different Components of a Check
Here are different components of a check. Take note that checks do not look alike but all these components are present in different kinds of check.
- Name of the account owner which usually appears at the upper right hand corner of the document.
- Payee line is the space provided to whom the check is issued to.
- The amount box is where you put the numerical figure of the amount to be paid.
- The amount in words line.
- Date line, which is the date where the check is supposed to be presented as payment or for cash conversion.
- Signature line is the space provided where the check owners validates the check by affixing his or her signature.
- Check number which is relevant for monitoring purposes of check transactions, both for the payee and the payer.
- Account number which indicates that the payor has a valid checking account with the designated bank.
- Bank information which indicates the name of the bank, the branch or office that the check will be presented as well as address and contact numbers.
- The back of the check is the space where the payee will endorse the check.
What You Should Not Do with the Check
All of the components of the check mentioned above are very relevant as these are the details which check cashing companies need in order to verify that your check is valid and funded. But there are just some things that you should not do with it so it will not bounce. Some of which are as follows:
- You should not tamper it as you need to have the tampered portions signed by the payor and of course this takes time and will be very inconvenient especially if you need cash badly.
- You should not deface or ruin the check especially nowadays where technological imprints are embedded into the check as a tool for check verification. Ruining the face of your check might hamper its readability with scanners and other bank tools or instruments to verify its validity. Thus, you might need to go back to the issuer and issue another one for you.
Now that you know some basic information about checks, we hope that you will no longer be confused as to what things you should verify when you receive a check or when dealing with check cashing companies.