How to Write a Cheque in Canada? A Step-by-Step Guide

In Canada, cheques are still a popular way to pay for items or services. Even though there are other methods of payment available, such as debit cards and credit cards, some people still prefer to use cheques.

If you’re not familiar with how to write a cheque in Canada, don’t worry – we’re here to help! In this guide, we will teach you how to fill out a Canadian cheque correctly.

Let’s go!

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What is a Cheque?

A cheque is a document that is used to transfer money from one person or company to another. The person who writes the cheque is known as the ‘drawer’, and the person who receives the payment is known as the ‘payee’. It must be filled out correctly in order to be valid, and it can take several days for the payment to be processed.

Cheques can only be cashed once, so if you want to cancel a payment before it has been deposited into an account then contact your bank immediately! If someone else tries using my cheque without permission what should I do?

Benefits of Writing a Cheque

There are many benefits to filling in a cheque instead of paying with cash, debit card or credit card. For example:

  • You can write a cheque for any amount that you want! This means there’s no need to worry about having enough loose change on hand when paying for items at the grocery store. Plus with all those pennies saved up, it’s easy to buy yourself something nice.
  • You don’t have to carry around large amounts of money in your wallet, which makes it safer when travelling overseas or visiting unfamiliar places where there may be pickpockets lurking nearby.
  • It’s accepted by most retailers and businesses across Canada so you’ll never be short on options for how to spend your hard-earned cash.

Drawbacks of Writing Cheques

There are a few drawbacks to using cheques, however. For example:

  • It can take several days for the payment to be processed, so you may need to plan ahead if you’re expecting to receive money from someone.
  • There’s a risk that the cheque could get lost in the mail, or that it may not be delivered on time and therefore become invalid before it arrives at its destination.
  • If someone else gets hold of your cheque, they could spend all the money without permission – so keep them safe!

How to Write a Cheque in Canada?

Now that you know all about cheques, let’s take a look at how to actually write one out. Here’s a step-by-step guide on how to fill out a cheque:

 

1. The first thing you need to do is find the chequebook that your bank has issued you. Each book will have several blank cheques inside, so make sure to use only one page at a time and not tear it out!

 

2. Next up is adding in your name as the drawer (ie: the person giving money away). You should write this under ‘Pay To The Order Of’. For example, if John Smith wrote out his cheque then he would write ‘John Smith’ in this section.

 

3. While filling out a cheque, the amount of money that you’re transferring should be written in the box labelled ‘Amount’. This can be written in either Canadian or American dollars, depending on your preference. For example, if someone wrote out a cheque for $50 then they would write ’50’ in this box.

 

4. The next step is to fill in the recipient’s name. You should write this under ‘Pay To The Order Of’. For example, if John Smith wrote out his cheque then he would write ‘John Smith’ in this section.

 

5. On top of your signature at the bottom right corner make sure there are no extra spaces between the dollar amount and the word ‘Cents’. For example, if someone wrote out a cheque for $50 then they would write ’50 CENTS’ in this box.

 

6. Once you’re all done, make sure to date your cheque! This is especially important if it’s a cheque that will be used as a gift or payment for services rendered in the future.

 

7. The last step is the cheque signature at the bottom right corner, which signals authorization of this transaction and prevents anyone else from cashing it out on their own accord.

How to Write a Void Cheque

A cheque that has been written in full but not signed by the owner is considered “void”. This means it cannot be used as payment for any goods or services until it has been endorsed with both signatures — yours and your bank’s.

In order to void a cheque, you must write VOID across the front of it before depositing it into your bank. This will ensure that the cheque is not accidentally processed and that no funds are transferred.

What if You Make a Mistake While Writing a Cheque?

If you make a mistake while writing a cheque, the best thing to do is void it by crossing out any errors and writing VOID across the front of it before depositing it into your bank. This will ensure that no funds are transferred from one account to another when you’re trying to fix an error in writing such as adding too many zeros or forgetting to sign it.

If you’re worried that someone might try using your cheque with an invalid signature, then use a pen instead of a pencil so there will be no mistake about who wrote on what! This way they won’t have any trouble trying cashing out their money because they can always look at the backside where it says ‘payable only upon presentation to any branch’ before doing so.

How to Write a Post Dated Cheque

A post dated cheque is written in the same way as other cheques, except for one important difference: the date on which it will be cashed must be written at least 30 days from when it’s drawn. This gives the bank enough time to process it and ensure that there are enough funds in your account on the day that it’s set to be cashed.

What is a Stop Payment Order?

A stop payment order (SPO) is an instruction you give your bank to prevent them from honouring any future cheques written out by you or another person on your behalf.

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What can you Write a Cheque for?

You can write a cheque for several different purposes. Read along to see what cheques are most frequently used for:

Writing a Cheque for Rent

A rent cheque should include the date of payment, amount being paid in numbers and words (or both), landlord’s name as it appears on their account at the bank with address details like street name and number, unit,  building code, rental property address. You should also include a note stating “Rent Payment” followed by your signature at the bottom right corner.

Writing a Cheque to Yourself

Yes, of course! You can write cheques for yourself, family members or friends as long as they have an account at the same bank where you’re writing from.

Writing a Cheque to Someone Else

If you want to pay someone with a cheque then just fill out their name and address on the front of the form before adding up what they owe you; then sign it at the bottom right corner.

Writing a Cheque to Pay your Bills

A bill cheque should include all relevant information about what is being paid for, when and how much it cost so that there are no mistakes when they deposit the money into their account.

What’s the Bottom Line?

Hopefully, our complete guide on how to write out a cheque in Canada helped you out! If you’re still having trouble, or if there’s anything else you’d like to know then don’t hesitate to contact your bank directly. They’ll be more than happy to help.

FAQ

Where do you sign on a cheque? 

You sign a cheque at the bottom right corner underneath where it says ‘Paid By’ above the dollar amount in words (e.g., Twenty Five Dollars).

How to write a cheque in Canada? 

To issue a cheque, you must first have an account at the bank where they are being drawn from. Then fill out their name and address on the front of the form before adding up what they owe you; then sign it at the bottom right corner.

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