How to Read a Check

Checks aren't used the way they once were, but they haven't disappeared. A landlord may want one for a security deposit, an employer may ask for a voided check to set up direct deposit, and some offices still won't take anything else.

Each field on a check does a specific job, and two of them matter more than the rest. Here's what everything means.

Parts of a check explained

Personal information

The account holder’s name and address is printed at upper left.

Date line

You enter the date you’re writing the check at upper right. People sometimes post-date checks, indicating the date they want the recipient to cash it, not necessarily the date it’s written out. But banks and credit unions don’t have to wait until the date on your check to process it.

Pay to the order of

You write who the check is for on this line. It can be a person’s name, a business name, or another eligible payee.

Dollar amount (numerical and written)

This can be an unusual line, if you’re not familiar with checks. You write the amount twice:

• Once in numerals in the box on the right.
• Another spelled out on the line below the payee.

If the two disagree, the written version is the one that counts.

Memo line

The memo line is an optional spot to describe what the payment is for, such as “October rent” or a billing account number, but you can skip it.

Signature line

Your signature at bottom right is what authorizes the payment. Don't sign until everything else is filled in.

‍What if your signature doesn't match? Most checks clear without anyone looking, but banks do compare signatures on larger or unusual ones. A mismatch can get the check returned, sometimes with a fee. If yours has changed since you opened the account, talk to your bank.

Numbers printed on your check

The numbers along the bottom of a check are what helps financial institutions process the payment. Federal Reserve Financial Services maintains information about routing numbers used in the U.S.

Routing number

Your routing number is a unique number for the financial institution associated with your checking or debit account. Of the numbers printed at the bottom of your check, the routing number is typically first.

Account number

Just after the routing number, the account number identifies which of your checking or other debit accounts the money is drawing from. A bank needs both your routing and account numbers to process a payment.

And you’ll need both to set up an online payment. Some employers ask you to provide a voided check when setting up direct deposit.

Check number

The check number is simply that: a number for the individual check. It’s typically printed at upper right and again along the bottom, just after routing and account numbers.

Read more >> How to Fill Out a Check Step by Step

How to read a voided check

A voided check is like a regular check except it’s marked void or canceled to prevent anyone from using it as a payment.

You might provide a voided check when an employer first sets you up with electronic deposits or payments. You can’t use it to pay somebody, but the routing and account numbers still provide all a person needs to withdraw money.

When you’ll need to read a check

If you don’t have your checkbook handy, you can find your routing and account numbers in your online banking portal, usually under account details.

Read more >> Do You Need a Credit Score to Open a Bank Account?

Bottom line

Once you know what each field does, a check is straightforward: date, payee, amount twice, memo, signature. The routing and account numbers along the bottom are the part worth guarding, since anyone who has them can initiate a transfer.

One thing a check doesn't do is build credit. Writing rent checks on time for years leaves no record with the credit bureaus, because landlords and utility companies generally don't report payments. Kikoff's rent and bill reporting sends those payments to the bureaus, so the money you're already paying starts counting.