How you should write a cheque

The way in which you should write cheques changed in September 2006 in order to reduce cheque fraud. The Building Societies Association (BSA) have issued some advice on the best way to write a cheque.

What Has Changed?

When you are paying a cheque into any building society or bank, you may have previously made the cheque out to that organisation, e.g. when making a cheque out to Scarborough Building Society in order to pay money in to an account you may have simply made it out to 'Scarborough Building Society'.

This is not the correct way to make a cheque out, now further details are required. When making out a cheque to your account at the Scarborough the following format should be used:

• The payee line should read: Scarborough Building Society/Your Name.
• You should also draw a line through unused space on the cheque so unauthorised people cannot add extra numbers or names.

What Will Happen If I Don't Use This New Format Of Writing A Cheque?

If you try to deposit a cheque in a branch, or by post, made payable simply to Scarborough Building Society, your cheque will be returned to you.

APACS Tips For Writing and Recieving Cheques

APACS is the UK trade association for payments and for those institutions that deliver payment services to customers.

Receiving a cheque

1. Never accept a cheque, or banker's draft, from someone unless you absolutely know and trust them. Be especially wary when accepting a high-value cheque or banker's draft.
2. Be aware that a banker's draft is not necessarily safe from fraud. If you receive a banker's draft in payment for goods you must allow time for the draft to clear before releasing the goods. Banker's drafts can be stolen or altered like any other cheque and if it is altered, stolen or counterfeit it will not be honoured.
3. Be aware that, even after the value of the cheque or banker's draft has been credited to your account, there is a risk that the money could be reclaimed if the cheque or banker's draft subsequently turns out to be stolen or counterfeit.
4. Always consider other types of payment for high-value items - such as a automated phone or internet payment (takes three working days) or a CHAPS payment (a same-day service). There is a charge for a CHAPS payment but it is a guaranteed, irrevocable, same-day value payment. If the buyer is unwilling to pay the relatively small cost involved - or to split it with you - then you need to be on your guard.
5. Cheques should be paid into your account as soon as possible to reduce the risk of loss or theft and should always be paid in within six months as older ones may be returned unpaid.

Writing a cheque

1. If you are making a cheque payable to a bank or a building society, do not make the cheque payable simply to that organisation. Add further details in the payee line, for example XYZ Bank, re J Jones, account number xxxxxx. (The rules for accepting cheques at banks and building societies are changing from October 2006, in order to safeguard against fraud. After this date, if you try to deposit a cheque in a branch, or by post, made simply to a bank or building society, it may be returned.)
2. You should draw a line through unused spaces so unauthorised people cannot add extra numbers or names.
3. If it is necessary to make amendments, these should be made clear by crossing through the error and initialling or signing the correction.
4. Never presign blank cheques. When writing cheques, be sure to complete all sections, including the payee name, and the amount in both words and figures. To help prevent fraudulent alteration it is good practice to leave as little blank space as possible. It is also good practice to include the word 'only' after writing the amount in words.
5. Always be sure to date cheques - undated cheques are likely to be returned with a request to include a date.