While many of us now use digital payments for our day-to-day transactions, cheques remain a practical and occasionally necessary way to send or receive money. Writing a cheque in the UK is a straightforward process, but if youâve never done it before or need a refresher, this guide will walk you through it step by step.
What Youâll Need:
- A cheque book from your bank or building society.
- The payeeâs name and the correct amount to pay.
Step-by-Step Guide to Writing a Cheque:
1. Write the Date
Start by entering the date in the top right-hand corner of the cheque, in the format DD/MM/YYYY. Use the current date unless you intend to post-date the cheque, which is writing a date in the future so it cannot be cashed until that date.
2. Payeeâs Name
Next, on the line that says “Pay”, write the name of the person or company you’re paying. Make sure this is accurate because a cheque can only be deposited or cashed by the named payee.
Example:
- For an individual: Mr John Smith
- For a business: ABC Limited
3. Amount in Words
Below the payeeâs name, thereâs a line to write the amount in words. This is a security measure to ensure the amount isnât altered. Write the amount as clearly as possible, starting from the far left of the line.
Example:
- For ÂŁ56.25, write: Fifty-six pounds and 25 pence only
- For ÂŁ100, write: One hundred pounds only
4. Amount in Numbers
In the box to the right, write the same amount in numbers. This should match the amount in words. Donât forget to include pence, even if itâs .00.
Example:
- ÂŁ56.25
- ÂŁ100.00
5. A/C Payee for Added Security
If you want to ensure the cheque can only be deposited into the bank account of the payee (the person or company youâre paying), write “A/C Payee” down the middle of the cheque, usually between two parallel lines. This makes it a crossed cheque, meaning it cannot be cashed by anyone else.
Writing “A/C Payee” is particularly useful in the following situations:
- Sending cheques by post: To prevent fraudulent cashing.
- Large or business transactions: For an extra layer of protection.
- When extra security is needed: To avoid the risk of someone other than the named payee cashing the cheque.
It doesnât affect how the payee receives the funds but ensures the cheque is only processed into their account.
Most modern UK cheques already come with “A/C Payee/Account Payee” printed across them. This means the cheque is automatically crossed and can only be deposited into the named payeeâs bank account. Itâs a standard security measure, so you don’t need to add this yourself. If your cheques already include “A/C Payee”, you can rest assured they cannot be cashed by anyone else.
6. Signature
Sign your name at the bottom right of the cheque. Ensure your signature matches the one the bank has on file for your account. If your signature doesnât match, the cheque may be rejected.
7. Fill in the Cheque Stub (Optional but Useful)
Most cheque books come with a stub on the left side, which you can use to keep a record of the cheque youâve written. On the stub, you can note:
- Date: The date you wrote the cheque.
- Payee: The person or company youâve paid.
- Amount: The amount of the cheque.
- Reason: A brief note on why the cheque was written (e.g., “Rent payment” or “Invoice 12345”).
Filling out the cheque stub is a great way to track your payments and ensure your records match your bank statements.
Tips for Writing Cheques:
- Avoid mistakes: If you make an error, voiding the cheque by crossing it out and writing “VOID” across it is best. Start a new cheque rather than trying to fix the mistake.
- Use ink: Always use a ballpoint pen or a fountain pen with indelible ink. Never write a cheque in pencil or erasable ink.
- Be clear and precise: Make sure all parts of the cheque are filled in accurately and legibly to avoid delays or rejections.
How to Cancel a Cheque
If you need to cancel a cheque after writing it, contact your bank and request a stop payment. Be prepared to provide details such as the cheque number, amount, and payee. Keep in mind that banks may charge a fee for this service.
Common Mistakes to Avoid:
- Leaving blank spaces: Avoid leaving gaps between words or numbers that could be altered.
- Post-dating cheques: While legal, post-dating cheques can be risky as some banks may cash them early. Make sure the recipient agrees to wait for the date specified.
Conclusion
Though cheques arenât as common as they used to be, knowing how to write one correctly is still a valuable skill. Whether itâs for paying bills, making donations, or gifting money, following these steps ensures your cheque will be processed smoothly.
Next time you need to write a cheque, youâll be prepared and confident to do so!