1. Fill in the details carefully on the counterfoil.
2. Spell the payee's name correctly, and use the right initials.
3. Write "the sum payable" distinctly, starting from the extreme left-hand side of cheque, and leave no space between the written number and the word "pounds," so preventing the forged addition of "ty," turning six into sixty or seven into seventy.
4. The signature of the drawer on the cheque must agree with the signature in the banker's book when the account was opened.
5. Always fill in cheques in ink.
6. Guard against roguery by either a general or a special crossing.
7. As a still further safeguard, an amount a trifle higher may be written across the face of a cheque thus, "Under Ten Pounds," protects against the substitution of nine into ninety; or the words "not negotiable" may be used. Some large firms also perforate the amount on the cheque.
8. If any alteration has to be made in the amount, write your own initials as drawer.
9. Ascertain that there are sufficient funds at the bank to pay it, otherwise the cheque may be dishonoured.
10. Be careful that the amount agrees in words and in figures, otherwise the cheque will be returned by the bankers with the words "amounts differ."
11. When a cheque is crossed thus it can only be paid through a bank.
A special crossing is similar, only the name of the payee's banker must be inserted between the lines, in which case the drawer's banker will pay through the bank mentioned only.
1. Payment by cheque should not be accepted unless the drawer is a person of sound financial reputation.
2. If the drawer has misspelt the payee's name, the payee should first endorse it as misspelt, and then write the correct signature underneath.
3. Cheques should be presented for payment as soon as possible, as delay may mean that the drawer's fund is exhausted. Possibly, also, death may intervene, and great delay in payment will ensue.
4. If a cheque is held back for six months, the banker will not cash it until he has referred it to the drawer and obtained his consent. Cheques are subject to the Statute of Limitations, and after six years' retention payment cannot be enforced.
5. If by any chance a cheque should be lost after it is endorsed, advise the drawer and request him to communicate with the banker, thus stopping payment.
6. If the cheque is in payment of a debt of £2 or over, a receipt should be stamped, defacing the stamp by writing the signature over it, as a cheque is not usually a receipt.
7. A cheque may be payable to "Bearer" - that is, any person who presents it - or to "Order." In the latter case it must be endorsed by the person to whom the cheque is made payable; that is, he must write his name on the back of it. As "Bearer" cheques require no endorsement, in matters of business "Order" cheques are preferable. In cheques altered from "Order" to "Bearer," the alteration must be initialled by the drawer.
8. Cheques dated on a Sunday are not payable till Monday, and cannot be cashed on the preceding Saturday.
9. "Mr.," "Mrs.," or uMiss" should not appear on an endorsement.