![]() It also prevents thieves from manipulating the number (turning a 63 into an 83, for instance). ![]() The purpose of this is to avoid any possible confusion that could result from somebody misreading the numerical value posted in the dollar amount box (see below). The dollar amount line is where you will write out the fully-spelled and articulated amount. Once you’ve defined who you’re paying, it’s time to define how much you’re going to pay them. Try to avoid using “signature script” here. To ensure that there’s not any confusion, you should do your best to write the name out in clear handwriting. If you’re writing a cheque to a business, you should always write the legal business name, not the DBA name of the business. The same principle applies to business cheques. Some banks are stricter than others on this.Ĭertain banks will accept the use of nicknames on cheques, while others may deny the cheque for a simple spelling error. In most cases, the name should directly line up with the individual or business that will be depositing the cheque.įor example, if you intend to write a cheque to your brother Joe (whose legal name is “Joseph”), you should use the individual’s legal name. ![]() This is where you’ll find the name of the individual, business, or organization getting paid. The payee line is, by far, one of the most important lines on a Canadian cheque. Part of the address should also include the postal code of the Canadian city, town, or region that you live in.Ĭanada has several cities and towns with the same name, so having the correct postal code ensures that cheques always end up in the right location. I always recommend updating your chequebook and registered bank address as soon as you move to a new residence. If you ever have a cheque mailed back to you, you’ll want to make sure it ends up in the correct place. It’s important to make sure that you get the address right. If you’re looking at a business cheque, then the address will be represented by your business’ primary mailing address, which your bank should have on file. If you’re an individual, then this line will display the primary residence address that your bank has on file for you. Addressĭirectly underneath the name of the account holder, you’ll find the address line (which may take up two lines, depending on the type of residence you’re in). If you change your business name, your bank should also be notified to reflect this. It’s important to note that your DBA (doing business as) name is not listed.įor instance, if your legal business name is “123Alpha LLC” and the DBA name is “John’s Quick-Stop,” the former is what will be listed on your cheque. If you’re using a business bank account, then the top line will be your legal business name that’s registered with the bank. This is typically the same name that you have listed on all of your government documents and may include titles, such as Dr., Mr., Mrs., and others. The entire upper-left-hand corner is typically dedicated to information about the account holder.įor instance, if it’s your personal bank account, you should expect to see your full legal name. Endorsement (on the back of the cheque)Īdditionally, the bottom of every Canadian cheque should have a series of numbers known as the MICR encoding line.įor reference, here’s a diagram of a blank cheque from TD bank: 1.Personal information (your name, address, postal code).However, all cheques should have the same basic lines, including: Depending on the financial institution that you bank with, cheques from one bank may look a little bit different than cheques from another bank. Conclusion How To Read A Cheque In Canada: The Basicsįor the most part, Canadian cheques are the same.
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