1. PARTS OF A PAYCHECK

2. Parts of a Check ■Check Number –Checks are numbered for easy identification ■ABA Number –The American Bankers Association (ABA) number appears in a fraction form in the upper right corner of each check. The top half of the fraction identifies the location and district of the bank from which the check is drawn. The bottom half helps in routing the check to the specific area and bank on which it is drawn. ■Maker’s Preprinted Name and Address –The maker, or drawer, is the person authorized to write checks on the account. You should have your name and address printed on our checks. Some people also include their phone number. Businesses may be reluctant to accept a check unless it is preprinted with at least the name and address. To avoid identity theft, do not have your social security number printed on your checks.

3. Parts of a Check (Cont’d) ■Date –In this blank, fill in the date you write the check. Do not postdate checks. Banks will not cash a check before the date written on it, or they may charge a fee for holding the check until the date arrives. Also, banks may not honor checks over six months old. ■Payee –The payee is the person or company to whom the check is made payable. ■Numeric Amount –The numeric amount is the amount of dollars and cents being paid, written in figures. Write the amount neatly and clearly as close as possible to the dollar sign, with the dollars and cents clearly distinguished. Many people raise the cents above the line of writing and insert a decimal point between the dollar and cent amounts.

4. Parts of the Check (Cont’d) ■Written Amount –The written amount shows the amount of dollars and cents being paid, written in words. The word “DOLLARS” is preprinted at the end of the line. Write the word “and” to separate dollar amounts from cents; the word replaces the decimal point. When checks are written by computers, the “and” is usually omitted. Always begin written at the far left of the line, leaving no space between words, and draw a wavy line from the cents to the word “DOLLARS”. If there is any discrepancy between the written amount and the numeric amount, banks will go with the written amount. ■Signature –Sign your check on the signature line. If the banks suspects the check is forged, the teller can compare the signature against the one on our signature authorization form.

5. Parts of a Check (Cont’d) ■Account and Routing Numbers –The account number appears in the bank coding at the bottom of each check. The routing number is listed first. This is the banks identification code for the electronic sorting and routing of checks. The second set of numbers is your checking account number. ■Memo –The memo line at the bottom left of each check provides a place to write the purpose of the check. You do not have to fill in this line. It is there for your convenience.

6. Example: Blank Check Example: Completed Check

7. Writing Checks ■When writing checks, be sure to do the following: 1.Always use a pen, preferably one with dark ink that does not skip or blot. 2.Write legibly. Keep numbers and letters clear and distinct, without any extra space before, between, or after them. 3.Sign your name exactly as it appears preprinted on the check and on the signature card you signed when you opened the account. If you opened our account under your full name, don’t use a nickname when writing a check. 4.Avoid mistakes. When you make a mistake, void (cancel) the check and write a new one. To cancel a check, write the word VOID in large letters across the face of the check. Save the voided check for your records. 5.Be certain you have deposited adequate funds in your account to cover each check your write. A check is negotiable instrument. It represents your written promise to pay the stated amount to the payee when it is cashed.

8. Endorsing Checks ■A check cannot be cashed until it has been endorsed. ■To endorse a check, the payee named on the face of the check signs the back of the check in ink. ■There are three major types of endorsements: –A blank endorsement is the signature of the payee written exactly as his/her name appears on the front of the check. If your name has been misspelled, correct the mistake by endorsing the check with the misspelled version first, then the correct version of the name. –A special endorsement, or an endorsement in full, is an endorsement that transfers the right to cash the check to someone else. It consists of the words “Pay to the order of ___________” and the signature of the original payee. –A restrictive endorsement restricts or limits the use of a check. For example, a check endorsed with the words “For Deposit Only” above the payees signature can be deposited only to the account specified.