Ben Nguyen 
As digital transactions rise globally, why does the ability to fill out a cheque still matter? In Canada, cheques remain widely accepted for making infrequent, high-value payments safely without large cash transactions or linking bank accounts through electronic transfers. Statistics from the Government of Canada show that 70.1% of businesses still accept cheques as a payment method.
With banks and landlords often preferring the accountable paper trail and security features cheques provide, knowing how to write a cheque accurately saves time, establishes financial credibility, and prevents complications.
What Is A Cheque?
A cheque is a written financial instrument that authorizes a bank to withdraw a specific sum of money from the payer’s account to pay the designated beneficiary, also known as the payee.
A cheque acts as a documented promise of payment upon presentation to a financial institution. The payer, the person who writes the cheque, must have sufficient funds in their account at the issuing bank when the recipient submits the payment. The beneficiary then deposits the cheque into their bank account, completing the transaction.
How To Write A Cheque In Canada Properly?
Writing a valid cheque in Canada requires properly filling mandatory fields, recording details legibly, and securely storing both issued and unused cheques. Here are the six necessary steps for cheque writing.
Step 1: Date a Cheque Properly
Always start by clearly writing the date in the top right corner of the cheque in the format shown, typically YYYY/MM/DD.
The date indicates when the cheque becomes valid, so funds cannot be withdrawn until that day or later. Having an accurate, legible date prevents the cheque from being cashed early or rejected by the bank. For example, write “2025/06/24” for June 24, 2025.
You can also post-date a cheque by writing a future date. This schedules a payment in advance while retaining the money in your account until that day. Inform the recipient to prevent confusion and ensure sufficient funds by that date.
Banks process cheques for six months from the written date. After that point, stale-dated cheques may be rejected, but policies vary between financial institutions.
Step 2: Write the Name of the Payee
The payee line on a cheque specifies the exact name of the recipient individual or business permitted to deposit and draw funds from that document. Accuracy matters greatly to prevent fraudulent alterations.
When filling out the “Pay to the order of” line:
- Write the payee’s full legal name for individuals, businesses, or organizations. No abbreviations or nicknames. For example, if you are paying Manulife, write “Manulife Bank” instead of “Manulife”.
- Check spelling carefully and legibly print names in capital letters using a black or blue pen.
Confirm organizations’ official names when unsure. Incorrect payee details delay payments and risk cancellations.
After specifying the verified payee, no alterations to that line should occur. Contact banks regarding any errors or changes that need to be made.
Step 3: Write the Amount in Numbers
The dollar amount box on the right side of a cheque requires purely numerical entries indicating exactly how much money to draw from the payer’s account. Precision matters greatly. Format the amount:
- In number form only, no spelling out value words
- With the currency sign before indicating the total value
- Carrying two decimal points for cents, even if the value is zero
For instance, a cheque for 5264 should display as 5264.00 inside the amount box.
To prevent fraudulent changes, begin writing directly next to the preprinted currency symbol without a space. After finishing the numbers, draw a straight line across any remaining area in the box before tearing the cheque along the perforation.
Step 4: Write the Amount in Words
While the bank references the numerical amount box on a cheque when processing payments, the written amount line prevents discrepancy errors or alterations after signing.
Here is how to write out a cheque amount in words correctly:
- To begin, write out the full dollar amount in capitalized words starting immediately after the preprinted word “Dollars” without leaving space. For example, $650 becomes “SIX HUNDRED FIFTY”.
- Then write any cent value as a fraction over 100. So $650.81 would read “SIX HUNDRED FIFTY AND 81/100”.
When finished writing the amount, draw a straight line across the remaining space until the end to prevent unauthorized additions.
Step 5: Write the Memo Line on the Cheque
The memo line at the cheque’s bottom left corner offers a convenient place to document what the payment covers. While optional, a clear memo note helps both parties quickly identify the cheque’s purpose and can clarify available funds. Common memo examples include “Insurance Premiums for May 2025” and “Reception Venue Deposit.”
Unless the memo line adds value to tracking the cheque, leave it blank. Any personal information beyond the payment details should be avoided.
Step 6: Sign a Cheque
Finally, no cheque becomes authorized without the payer’s original signature on the bottom right line. Always sign cheques that exactly match the signature card on file with your bank using a black or blue pen. Signing a cheque properly:
- Legally authorizes the bank to draw funds from your account
- Prevents cheque fraud by identifying you
- Enables efficient processing, avoiding verification delays
Take care not to use abbreviations or initials, which can invalidate the cheque. Also, never pre-sign blank cheques, which enables potential misuse and forgery if stolen.
Whenever you write a cheque, it’s a good idea to keep a copy—either the cancelled cheque or a picture of it from your bank statement. It can come in handy if there’s ever a question about the payment, especially for larger amounts.
What Are the Other Parts of a Cheque? How to Read a Cheque
In addition to the fields for required entries covered above, Canadian cheques contain preprinted tracking numbers allowing financial institutions to identify transactions.
- Cheque Number: Unique digits assigned to each cheque in a chequebook to designate the sequential payment order. This facilitates the bank tracing of cleared cheques.
- Bank Numbers: A string of numbers with the branch transit number (5 digits), then the financial institution number (3 digits), split using a hyphen. This identifies the specific bank and location holding the payer’s account to be withdrawn from.
- Account Number: Distinct digits designating the exact payer’s account at their branch location to pull funds from.
These numbers are printed by a Special magnetic ink character recognition (MICR), enabling automated machine reading and processing. Having the correct bank, branch, and account numbers prevents complications or rejects when clearing cheques between financial entities.
5 Types of Cheques in Canada
There are five types of cheques in Canada. While standard cheques draw directly from a personal bank account, other varieties serve specialized financial purposes.
- Personal cheques authorize banks to transfer funds from the payer’s account to the named recipient. They are convenient for transfers under $10,000 but carry a small risk of bounced payments if a sufficient balance is lacking when processed.
- Certified cheques differ in that the bank itself verifies sufficient reserved funds. Guaranteeing the amount makes them more credible for major purchases. However, this blocks access to those funds during the cheque clearing timeline.
- Bank drafts also guarantee bank-backed payments for large transfers and provide faster access to money compared to certified cheques. However, they carry higher fees, around $10 per draft.
- Void cheques contain accurate account and routing numbers, but are invalid for actual withdrawals. Instead, submitting void cheques facilitates setting up direct deposits and automatic bill payments.
- Post-dated cheques display future dates, delaying processing, which is useful when needing to stage payments in advance during accounts transition periods.
Each type of cheque has its own purpose. Some are good for everyday use, while others are better for large payments or setting up deposits. So you should know the difference to help you use the right cheque at the right time.
How to Get Cheques in Canada?
Traditional paper cheques in various standard and custom designs remain available by request from your Canadian financial institution. Basic cheque packages often cost around $40, depending on binding style and number included.
Higher volumes or unique visual elements may increase prices. Know your projected annual cheque usage to select appropriate quantities while minimizing fees.
Many banks allow convenient online ordering through account management websites and mobile apps. In-person requests also work well, as representatives can input specifics accurately. Always confirm current mailing addresses when processing cheque orders.
For greater variety, third-party cheque printing services from reputable companies affordably ship orders Canada-wide.
Certain financial technology apps also issue digital cheques as payment vehicles. These operate like standard paper cheques while streamlining preparation, submitting, and archiving processes electronically.
Want to learn how to get void cheques from different banks in Canada? Explore our extensive guides at:
How Do You Deposit a Cheque?
Once received, beneficiaries should promptly deposit business or personal cheques for processing through available banking channels to access the money:
- In person: At physical bank branch locations, accepting cheques directly during business hours for same-day action.
- ATMs: Able to accept cheques virtually anytime while still experiencing potential payment holds.
- Mobile apps: Offering convenient scanning and uploading to submit using smartphone cameras when banks provide that capability, with accompanying disclaimers about holds.
Typically, a deposited cheque holds for 1-4 business days, but may extend to 7 for larger amounts, while fraud and funds verification procedures are completed in the background.
Cashing cheques instead of depositing requires showing government-issued photo ID and often incurs related fees up to $10 per cheque, depending on the issuing institution. Cashing also risks losing funds if cheques bounce after encashment, compared to simply experiencing delays awaiting deposits.
How Long Are Cheques Valid in Canada?
The Canadian Payments System holds all authorized cheque issuers accountable for having adequate funds available to cover any legitimate instruments dated and presented for redemption within the last six months from the written date.
This standard policy from Payments Canada and practiced by major banks defines the reasonable maximum cheque validity timeframe.
After already honouring 180 days from the written dates, financial entities consider stale-dated cheques expired. Some institutions allow managers to accept older cheques on an exception basis at their individual discretion, which may involve contacting original cheque issuers to validate intent and confirm account balances. However, legally, banks can refuse to process stale-dated items.
What Happens When a Cheque Bounces
When attempting to process any deposited or cashed cheque, one undesirable outcome stems from insufficient funds in the payer’s account to cover the written amount: a bounced cheque. This triggers overdraft fees of around $45 charged to the original payer’s account. Their bank immediately reverses the transaction, withdrawing the access to money from the payee side.
Prevent bouncing headaches altogether by:
- Maintaining adequate balances for all written cheques before issuance
- Recording and reconciling all debit/credit transactions consistently
- Noting future-dated cheques in registers
- Setting mobile alerts for low balances
If a cheque you deposited bounces, contact the payer quickly, requesting them to make it right before pursuing legal demands. Learn from any mistakes and adjust practices to prevent repeat issues.
Can Someone Else Cash Your Cheque?
For a standard cheque written out to a specific individual or business displaying their name as the payee, Canada’s banks must allow that original payee to deposit the cheque and have the funds available exclusively. This guards against redirecting payments without consent.
However, through formal endorsement procedures on the reverse side, the initial named recipient can sign over cheque encashment rights to alternate persons or entities.
Endorsing transfers cheque deposit privileges but voids residual rights to associated drawn funds for original payees. Both financial institutions and endorsed secondary cheque beneficiaries can legally refuse unsigned instruments lacking validated payee release authorizations.
When naming joint payees, ensure all listed parties properly endorse during processing. For third-party cheque depositing, confirm the bank’s willingness to honour instruments missing original payee endorsements to avoid holds or rejections.
Alternatives to Writing Cheques
While traditional cheques remain useful for paying Canadian invoices and bills, technological options continue expanding digital financial transactions, reducing risks and delays associated with paper processing. Faster peer-to-peer platforms securely authorize electronic account transfers.
- Interac e-Transfers instantly push payments online between participating banks under $3000 using email addresses or mobile numbers without sharing full account details. Limits exist. Financial institutions charge fees for receiving funds.
- Pre-authorized debits conveniently set up recurring bill payments deducted directly from designated chequing accounts on scheduled dates. Payees must provide a signed authorization to merchants allowing withdrawals.
- Credit card payments utilizing Visa, Mastercard, or American Express allow cardholders to directly fund payments through monthly balance settlements with points incentives on certain card types and Bank transactions. Interest charges accompany extended repayment terms, carrying balances.
- Direct deposits enable employers and government entitlement services to automatically deposit regular payroll, pension, and benefits into specified bank accounts accurately on established dates, avoiding manual cheque deposits.
These options are faster, safer, and more convenient than using cheques. They help you send or receive money quickly and avoid delays or lost payments.
FAQs related to Writing a Cheque in Canada
Can you write a cheque to yourself?
Yes, cheques made payable directly to cheque issuers are permissible for transferring money between personal accounts or to track certain categories of spending. Put your name as the payee.
How do you stop payment on a cheque?
Contact your bank quickly to identify the cheque number, account details, and amount.
Can joint non-chequing accounts issue cheques?
Savings accounts, lines of credit, home equity loans, and certain credit card products provide associated cheque-writing abilities to users, either paper or electronic variations. However, correct access and hold procedures apply to banking agreements.
Can cheques have future dates when written?
Yes, postdating cheques delays processing until the specified future cheque date as long as merchants accept and banks allow hold releases on those timelines. Expect issues depositing too early.
The Bottom Line
Properly filling out a cheque remains a critical banking skill in Canada. Ensuring accurate dating, naming the verified payee, correctly specifying written and numeric amounts, signing as authorized, and tightly controlling physical security enhances the efficiency of payments via cheque.
If preferred, seeking available alternatives like pre-authorized debits or fund transfers using apps may serve your exact needs without cheque writing risks.
