Understanding Check Basics: What Every Account Holder Should Know

While digital payment methods dominate today’s financial landscape, checks remain a practical banking tool. Many people still rely on this traditional payment method for bills, salary deposits, or personal transfers. Yet surprisingly, many don’t fully understand how checks work or the proper procedures for using them safely and effectively. This comprehensive overview covers everything from identifying check components to endorsing and depositing them correctly.

Identifying the Key Elements on Your Check

Before you use a check for any transaction, you need to recognize and locate three critical identifiers. These numbers appear in consistent positions across all printed checks and serve essential functions for your bank and payment processing.

The routing number is your financial institution’s unique identifier. Always composed of nine digits, this number is essential for electronic transactions and is used whenever funds need to be routed to the correct bank.

Your account number distinguishes your personal checking account from all other accounts at the same institution. This individual identifier ensures deposits and withdrawals are credited to the right place.

The check number appears in two locations—the upper right corner and alongside your account number. Each check in your series has a unique sequential number for tracking and record-keeping purposes.

The Process of Writing a Check Correctly

Writing a check requires attention to detail. Here’s what needs to go on your check to ensure it will be accepted and processed properly:

Date the check appropriately. In the upper right corner, write the date you’re issuing the check. This date tells the recipient when the check was written and helps with record-keeping. Most commonly, you’ll use today’s date, though post-dating (writing a future date) is legal in most jurisdictions.

Fill in the payee information. On the “Pay to the Order of” line, write the exact name of the person, business, or organization receiving the payment. Accuracy matters—verify the correct spelling with your payee if you’re uncertain.

Enter the numerical amount. In the box on the check’s right side, write the dollar amount you’re paying. Position this amount toward the left border of the box to prevent fraudsters from inserting additional digits. Writing “$113.97” close to the left edge prevents someone from altering it to “$2,113.97.”

Write out the amount in words. Below the payee line, spell out the check amount. For a payment of $243.26, write “Two hundred forty-three dollars and 26/100.” If discrepancies exist between the numerical and written amounts, the written version legally takes precedence.

Include a memo if needed. The memo line serves as a note to yourself or the recipient about the payment’s purpose. When paying vendors, utilities, or taxes, use this space for your account number or reference information.

Sign the check. Your signature on the bottom right completes the check. Without it, the check is not valid. Your signature represents your authorization to transfer the stated funds from your account.

A practical example: paying your electric company $113.97. You’d date it, write the utility company’s name as the payee, enter $113.97 in the amount box, write out “One hundred thirteen dollars and 97/100,” note your account number in the memo section, and sign it. Then mail it to the address your utility company provides.

Recording and Tracking Your Checks

Maintaining accurate records of every check you write protects your financial health. Whether you use a traditional check register, a spreadsheet, or a banking app, record these details for each check:

• Check number and date
• Payee name
• Transaction description
• Payment amount

This practice helps prevent bounced checks and makes reconciling your bank statements straightforward. Monthly reconciliation—comparing your records against your bank’s statement—ensures all transactions are accounted for and catches any errors or fraudulent activity.

Protecting Yourself from Check Fraud

Because checks can be vulnerable to fraud, implement these security measures:

• Use pen, not pencil, so information cannot be erased
• Never write blank checks or leave blank space where amounts could be added
• Avoid making checks payable to “cash”
• Don’t sign a check until the payee and amount are filled in
• Leave no room for someone to alter the amount or other information

These precautions significantly reduce your fraud risk and protect your checking account.

Special Scenarios: Self-Checks and IRS Payments

Writing a check to yourself is perfectly legal and serves as an alternative cash withdrawal method or a way to transfer funds between accounts. Simply write your own name on the payee line.

For IRS payments, make the check payable to the U.S. Treasury (not the IRS). Include your name, address, daytime phone number, Social Security number or EIN, the tax year, and the related tax form or notice number. Get the correct mailing address from your tax form or the IRS directly.

How to Properly Endorse a Check

When you receive a check, you must endorse it before depositing or cashing it. Endorsement is a security measure proving you’re the intended recipient.

Blank endorsement is the most common method—simply sign your name on the back of the check. This is straightforward but offers minimal security since anyone possessing the signed check could attempt to cash it.

Secure endorsement provides better protection. Write “For Deposit Only to Account Number [your account number]” and then sign below, staying within the designated endorsement area. This restricts the check to deposit only. Sign as close to deposit time as possible for maximum security.

Third-party endorsement allows you to transfer a check to someone else by writing “Pay to the order of [recipient’s name]” and signing it. However, not all banks accept third-party endorsements, so verify this option with your financial institution first.

Mobile deposit endorsement may require adding “For Mobile Deposit To [Bank Name]” depending on your bank’s requirements.

Business endorsements must include the company name, an authorized person’s signature, their job title, and any restrictions like “For Deposit Only.”

Multiple payee checks require understanding how the check was written. If made out to “Jane and John Doe,” both must endorse it. If written as “Jane or John Doe,” either party can endorse it.

Depositing Your Check: Available Options

You have multiple ways to add a check to your account:

In-person deposit at your bank branch remains an option. Bring the endorsed check, a deposit slip (if required), and valid identification like a driver’s license. The teller will process your deposit.

ATM deposit is available at many institutions. Endorse your check first, then insert it into an ATM using your debit card and PIN. Some ATMs require using an envelope for the deposit.

Mobile check deposit through your bank’s app has become increasingly popular. Photograph both the front and back of the endorsed check, enter the amount, select your account, and submit. Keep the physical check until the deposit clears and funds appear in your account, then safely destroy it.

Ordering New Checks When Supplies Run Low

When you exhaust your current check supply, you have several ordering options:

Order through your bank online by logging into your account and accessing the customer service or account services section. Many financial institutions offer this free or at a modest fee.

Order at your local branch by visiting in person and requesting new checks.

Call your bank’s customer service to place an order by phone.

Use third-party check providers that partner with your bank or operate independently. These suppliers often offer personalized designs at varying price points.

Have an existing check available when ordering—it contains all the information you need: account number, routing number, bank details, and your contact information. Note your most recent check number so your new batch continues the sequence correctly.

Check pricing varies based on the supplier, design complexity, and whether you choose basic or personalized options.

Why Mastering Checks Still Matters

Despite our increasingly cashless world, check-writing skills remain valuable. Understanding how to write checks correctly, endorse them properly, deposit them through various methods, and maintain accurate records strengthens your banking competency. This knowledge helps you maximize your checking account’s value and maintain a solid relationship with your financial institution.

Frequently, people ask about post-dating checks (legal in most states), depositing checks at ATMs (possible at many banks), and other procedural questions. The bottom line: acquiring these basic skills ensures you handle every check transaction with confidence and security.