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Parts of a Cheque PDF Print E-mail
Written by Cecilia Chee, Singapore   
Monday, 03 October 2011 12:53

 

Parts of a Personal Cheque

 

A personal Cheque has a number of parts to ensure proper bank processing so the recipient can receive his payment without any problems. It also is designed to protect the Chequeing account holder against fraud, whether through stolen or altered Cheques. Whether Cheques are bank-generated or computer-created, the basic parts remain the same.

Signature Line

o    The signature line on the front, bottom right side of the Cheque is especially important when it comes to fraud investigations, as the bank can compare the signature on the Cheque to past signature records such as other Cheques. On the back of the Cheque, there is a signature line for the Cheque recipient to endorse so she can receive her payment.

Payee Line

o    The payee line is on the front side of the Cheque near the top. It is essential for the Cheque recipient to make sure his name or company name is spelled properly by the writer to avoid problems when cashing or depositing the Cheque.

Amount Lines

o    Each Cheque has two amount lines--one for numerals only on the front, middle right side of the Cheque and the other for spelling out the amount in words on the front and center line of the negotiable instrument. These are both important to prevent Cheque fraud through other people altering the amount of the Cheque.

Date Line

o    The date of issue line on the front, top right side of the Cheque is especially important for the recipient. If it is dated past the day of the actual Cheque writing it can be harder to gain legal recourse if the Cheque bounces.

Memo Line

o    The memo line on the front, bottom left side of the Cheque is optional. It allows the Cheque writer to note what the payment is for, which can help with both the issuer and the recipient's personal record keeping.

 

Last Updated on Monday, 03 October 2011 13:24
 
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