Financial establishments and banking outlets have renovated how money is controlled, handled, regulated, and moved. Having a bank account is not a luxury but a requirement, especially when financial improbabilities are lingering around. This has occasioned an unprecedented financial debacle and potential risks involving mismanagement of money; therefore, as the head of the economic domain, banks have offered robust and reliable ways to provide peace of mind to account holders with maximum convenience. Currently, account holders have the accessibility and possession of current accounts, savings accounts, and retirement plans unveiled by the authorities, with the availability of loans, mortgages, ATMs, debit cards, and paper checks that help them move money through a less troublesome experience. However, moving money through checks is a tried and tested way to regulate money for less tech-savvy account holders. However, it is not the only way to do so, as ATM and debit card owners can perform this task through an ATM and move the money around.
What is the account holder’s name on a check?
Holder’s holder’s name on a check holder’s the payor. Invariably, the payor writes the bill and presents it to the payee. The payee takes the check to the bank (financial institution) to deposit it into an account or negotiate for cash.
Does the memo line on a check matter?
No, the memo line on a check is the least important part of the check. Usually, it represents a space for any notes (in your opinion) about the purpose of the check.
If checks are prioritized for financial transference, you need to know the basics of using them. To proceed using one, you must know how to write one, mention credentials and sensitive information, and deposit it. Displacing money from one entity to another can be convenient if tricks and tips for writing a check are learned. Nevertheless, technology is considered a panacea for performing technical tasks and is expected to replace check writing soon. Even then, check writing is a pillar of financial management; therefore, it should be gathered, and the skills should be developed despite its maximum prominence.
Since the banking industry is known to repetitively boost their traits to be a part of the competitive industry, they have learned to establish financial instruments and promote comprehensive ways to commercialize the banking sectors of the world. Because of this, the primitive methods of carrying out financial transactions are potentially old-fashioned. Regardless, checks are extensively operated and prioritized by most of the banking sectors. The prominence may be transitioning, but they are considered an official and effective platform to move money even then. They are considered highly safe for large-scale transactions; however, this only materializes if check owners or account holders learn to write it correctly, officially, and skillfully.
Checks are the official outlets and tools for paying or transferring money to an entity known as a payee. They come in the shape of a small book and list aspects and components that the writer needs to feature and highlight. However, the checkbook is provided to the account holders upon the customer’s request and delivered to them by the branch. Having a solid understanding of the components of a check, you can straightforwardly receive and deposit it and feel confident about financial transactions.
Regular checks are incorporated with pre-printed characteristics that are featured for the users to be filled in. They are placed next to the blank sections that must be meticulously filled out with precise and accurate details. Some categories are easy to follow and need a direct factual answer; however, some request technical solutions with more information and unique additions.
Identifying Parts of a Check
Anatomy of a Check presents these 12 parts:
- Personal credentials: This section on the check requires basic fundamental information about the account holder. The one paying the money to the payee should fill out detailed information. The individual information involves name, home address, and phone number.
- The payee: The account holder receiving the check has a separate and distinct line on the check. The one paying the money should declare fine points about the accepting individual on the other end. The writer must pay the individual’s name out of an individualization anticipating the payment. The recipient’s full name should be used to avoid any confusion during the deposit process.\
- The total amount: The official check requires the total amount to be declared in numerical form and written in Word format.
- The money category: This requires the total amount of value to be mentioned in new numerical form. However, this box is a courtesy box as the amount mentioned in the wording format is more important than the numerical digits.
- The memo line: This line is available for writing any extra notes about the fundamental and underlying purpose of the check. This space is used to highlight any additional notes on the check. It is optional and not a prerequisite to cash or deposit the check. However, you can still mention informal details for personal documentation.
- The Bank’s American Bank AssocBank number is also on the check to mention the ABA routing number, which identifies the bank’s funds for the check’s date. The account holder must also mention the exact date to avoid confusion.
- The signature area: The account holder is also responsible for verifying the payment by approving it through a unique signature. The payer should sign at the line at the bottom of the check. This is an essential security feature as the signature cannot be duplicated, which prevents fraud. It is considered the concluding step of check writing. The signature should be drafted at the end after double-checking all the essential details of the check.
- Bank’s contact information. Also, notice the branch information of your financial institution printed on the check.
- The bank’s fractional ABA number is similar to the ABA number, mainly found in the checkbook. Still, the fractional ABA number is printed in a different format and is usually located in the upper right corner of the checkbook.
- The account number: Your personalized account number will also be mentioned on the checkbook. This will allow the recipient to compare funds from a bank account to this number.
- The check number: The check number is found in two spaces on the checkbook. It is placed and printed as a security determinant to identify regular payments and avoid probable deception.
What part of a check is the least important?
The memo line is part of a check that is the least important. Usually, the memo line represents a space for any notes (in your opinion) about the purpose of the check. However, a check is valid if you do not put information in the memo line.
Should you put a phone number on the checks?
Yes, you can manually enter your phone number to check if another side (usually in business) requests it. However, you should not print the phone number on the check; you need to know that this is not mandatory.
The information mentioned above is found on the front page of the regular checkbook; however, the back also needs to be filled out with accurate information. This process is for the check writers, as they are required to endorse. This process is completed so the recipients can cash or deposit the check. To approve a check, the writer must sign the name on the back and mention additional details to make the process faster and smoother. A signature is a prerequisite; however, you can also mention other information to inhibit scams.
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@promtfinance.com