A cheque is a negotiable instrument which directs your bank, to pay money from your account, to a person to whom the cheque has been issued. It is one of the common ways to pay money and used in a transaction such as payment of a fee, salary and so on. You should be very careful while writing a cheque, because a small mistake can lead to a lot problems and you might lose your money.
These are some of the tips to write a safe cheque.
1. Never leave space between the word and numbers
The important thing you must keep in mind while writing a cheque is, never leave space between words and numbers. Scamsters may add some alphabet or number in the gaps and change the whole cheque.
If you are making a payment to someone via cheque and want the payment to go to that person's bank account, you should put a double cross on the left-top corner of the cheque and write “A/C Payee” or “Account Payee“. This makes sure that money will be directly credited to the bank account and not handed over to any person, as cash over the bank counter.
Add a running line after the name and amount in the cheque. This ensures that nobody can add anything after the amount or name and misuse the cheque.
Avoid abbreviations on the cheque and write the persons full name on the cheque.
On the right-hand top corner of the cheque, you can see "Or Bearer". This means either the person whose name is written on the cheque, or the person who bears the cheque, can encash it. So, you should cancel the word “Bearer” from the cheque, unless it is absolutely necessary.
Never sign a blank cheque. If someone gets the blank cheque, they can encash all your money.