How to write a cheque

Reliable and Efficient

Cheques are still a reliable and efficient method of payment, and while online and electronic payments are being embraced more and more, many businesses and individuals still prefer using cheques for some or all of their payments.

Kinds of Cheques

At Emirates Islamic, you can use 4 kinds of cheques with their own unique features:

• Self Cheque: This cheque is usually written to yourself and presented to the teller for cash withdrawal if the amount withdrawn exceeds the ATM limit
• Cash/Bearer’s Cheque: This cheque is payable to anyone in possession of the cheque and is subject to the Bank’s approval
• Order Cheque: This cheque is payable only to the payee whose name is mentioned on the cheque
• Account Payee Cheque: This cheque can only be deposited in the account of the payee

Post-dated and Stale Cheques

If the date on a cheque is a future date, it’s called a Post-Dated Cheque (PDC) and the Bank won’t allow it to be cashed or deposited until that date. It’s common to use PDCs for payments towards utilities, rent, car finance and business purposes. If the beneficiary has not cashed the Cheque for more than 6 months from the due date, that cheque becomes a Stale Cheque and it’s not valid anymore.

Tips on Proper Cheque Writing

When writing a cheque, follow the tips below to ensure smooth processing and avoid fraud:

• The date is one of the most important entries on a cheque. It indicates when the payee can deposit or cash the cheque
• Never sign a blank cheque. Always fill in the date, the name of the receiver and the amount before signing
• Write your cheques without any gaps from the printed area in spaces for the payee’s name and amount
• If you want your Cheque to be deposited to the payee’s account, mark the cheque as ‘Account Payee’ on the top left
• Always draw a line through any unused space
• Do not write, pin, staple or paste on the MICR encoded strip at the foot of the cheque
• Always write your cheque with permanent blue or black ink
• If you make mistakes or changes, cross them out and rewrite with counter signature
• To prevent unauthorised encashment of a cheque, issue Account Payee cheque
• When you cancel a cheque, destroy the MICR band and write ‘CANCEL’ across the face of the cheque

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