Editing Cheque (section)

== Parts of a cheque ==
[[File:BritishChequeAnnotated.png|frame|Parts of a cheque based on a UK example
{{ordered list
| Drawee
| Payee
| Date of issue
| Amount of currency
| Drawer
| Signature of drawer
| Machine-readable routing and account information
}}]]

The four main items on a cheque are:
* ''Drawer'': the person or entity whose transaction account is to be drawn. Usually, the drawer's name and account is preprinted on the cheque, and the drawer is usually the signatory.
* ''Payee'': the person or entity who is to be paid the amount.
* ''Drawee'': the bank or other financial institution where the cheque can be presented for payment. This is usually preprinted on the cheque.
* ''Amount'': the currency amount. The amount and currency (e.g., dollars, pounds, etc.) usually must be written in words and in figures. The currency is usually the local currency, but may be a foreign currency.

As cheque usage increased during the 19th and 20th centuries, additional items were added to increase security or to make processing easier for the financial institution. A signature of the drawer was required to authorize the cheque, and this is the main way to authenticate the cheque. Second, it became customary to write the amount in words as well as in numbers to avoid mistakes and make it harder to fraudulently alter the amount after the cheque had been written. It is not a legal requirement to write the amount in words, although some banks will refuse to accept cheques that do not have the amount in both numbers and words.

An issue date was added, and cheques may become invalid a certain amount of time after issue. In the US and Canada,<ref name="ucc4.404" /><ref>{{cite web|url=http://www.cdnpay.ca/imis15/eng/FAQs/Cheque_Clearing/eng/faq/Cheque_Clearing.aspx#bm07|title=Cheque Clearing FAQ, question 7|publisher=Canadian Payments Association|access-date=1 July 2011|archive-url=https://web.archive.org/web/20110610165000/http://www.cdnpay.ca/imis15/eng/FAQs/Cheque_Clearing/eng/faq/Cheque_Clearing.aspx#bm07|archive-date=10 June 2011|url-status=dead}}</ref> a cheque is typically valid for six months after the date of issue, after which it is a ''[[#stale-dated cheque|stale-dated cheque]],'' but this depends on where the cheque is drawn. In Australia, a cheque is typically valid for fifteen months of the cheque date.<ref name="Aus">{{cite web |title=Legal Issues Guide for Small Business: How long is a cheque valid for? |url=http://sblegal.innovation.gov.au/Lists/New%20Relevant%20Legal%20Issues/DispForm.aspx?ID=691&RootFolder=* |publisher=Department of Innovation, Industry, Science, and Research |date=4 July 2008 |access-date=26 May 2009 |url-status=dead |archive-url=https://web.archive.org/web/20100914101037/http://sblegal.innovation.gov.au/Lists/New%20Relevant%20Legal%20Issues/DispForm.aspx?ID=691&RootFolder=%2A |archive-date=14 September 2010}}</ref> A cheque that has an issue date in the future, a [[post-dated check|''post-dated'' cheque]], may not be able to be presented until that date has passed. In some countries writing a post dated cheque may simply be ignored or is illegal. Conversely, an [[antedated check|''antedated'' cheque]] has an issue date in the past.

A cheque number was added and cheque books were issued so that cheque numbers were sequential. This allowed for some basic fraud detection by banks and made sure one cheque was not presented twice.

In some countries, such as the US, cheques may contain a memo line where the purpose of the cheque can be indicated as a convenience without affecting the official parts of the cheque. In the United Kingdom a memo line is not available and such notes may be written on the reverse side of the cheque.

In the US, at the top (when cheque oriented vertically) of the reverse side of the cheque, there are usually one or more blank lines labelled something like "Endorse here".

Starting in the 1960s, machine-readable routing and account information was added to the bottom of cheques in [[MICR]] format, which allowed automated sorting and routing of cheques between banks and led to automated central clearing facilities. The information provided at the bottom of the cheque is country-specific and standards are set by each country's cheque clearing system. This means that the payee no longer has to go to the bank that issued the cheque, they can instead deposit it at their own bank or any other bank and the cheque would be routed back to the originating bank, and funds transferred to their own bank account.

In the US, the bottom {{frac|5|8}}-inch (16&nbsp;mm)<ref>{{cite book |url=http://www.troygroup.com/support/documents/50-70300-001_CMICRBasicsHandbook_000.pdf |title=MICR Basics Handbook |date=2015 |publisher=Troy Group |pages=1–5 |archiveurl=https://web.archive.org/web/20150421060830/http://www.troygroup.com/support/documents/50-70300-001_CMICRBasicsHandbook_000.pdf |archivedate=21 April 2015}}</ref> of the cheque is reserved for MICR characters only. Intrusion into the MICR area can cause problems when the cheque runs through the clearinghouse, requiring someone to print an MICR cheque correction strip<ref>{{cite web |url=http://www.usbanksupply.com/index.cfm/go2/view/pID/233/n/micr-1_1%7C8qmark-x-8_1%7C2qmark-check-correction-strips |title=SKU: USCST850 MICR 1-1/8" × 8-1/2" Check Correction Strips |publisher=U.S. Bank Supply |access-date=2018-01-23 |archive-url=https://web.archive.org/web/20160329081939/http://www.usbanksupply.com/index.cfm/go2/view/pID/233/n/micr-1_1%7C8qmark-x-8_1%7C2qmark-check-correction-strips |archive-date=29 March 2016 |url-status=dead}}</ref> and glue it to the cheque. Many new ATMs do not use deposit envelopes and actually scan the cheque at the time it is deposited and will reject<ref>{{cite web |url=https://www.cpmfed.com/?page=atm_member_faq |title=CPM Federal Credit Union Deposit ATM FAQ |access-date=2016-03-20 |archive-date=16 October 2016 |archive-url=https://web.archive.org/web/20161016215338/https://www.cpmfed.com/?page=atm_member_faq |url-status=dead }}</ref> cheques due to handwriting incursion which interferes with reading the MICR. This can cause considerable inconvenience as the depositor may have to wait days for the bank to be open and may have difficulty getting to the bank even when they are open; this can delay the availability of the portion of a deposit which their bank makes available immediately as well as the balance of the deposit. Terms of service for many mobile (cell phone camera) deposits also require the MICR section to be readable. Not all of the MICR characters have been printed at the time the cheque is written, as additional characters will be printed later to encode the amount; thus a sloppy signature could obscure characters that will later be printed there. Since MICR characters are no longer necessarily printed in magnetic ink and will be scanned by optical rather than magnetic means, the readers will be unable to distinguish pen ink from pre-printed magnetic ink; these changes allow cheques to be printed on ordinary home and office printers without requiring pre-printed cheque forms, allow ATM deposit capture, allow [[mobile deposit]]s, and facilitate electronic copies of cheques.

For additional protection, a cheque can be [[Crossing of cheques|crossed]], which restricts the use of the cheque so that the funds must be paid into a bank account. The format and wording varies from country to country, but generally two parallel lines may be placed either vertically across the cheque or in the top left hand corner. In addition the words 'or bearer' must not be used, or if pre-printed on the cheque must be crossed out on the payee line. If the cheque is crossed with the words 'Account Payee' or similar then the cheque can only be paid into the bank account of the person initially named as the payee, thus it cannot be endorsed to a different payee.

=== Attached documents ===
Cheques sometimes include additional documents. A page in a chequebook may consist of both the cheque itself and a stub or ''{{visible anchor|counterfoil}}''&nbsp;– when the cheque is written, only the cheque itself is detached, and the stub is retained in the chequebook as a record of the cheque. Alternatively, cheques may be recorded with carbon paper behind each cheque, in ledger sheets between cheques or at the back of a chequebook, or in a completely separate transaction register that comes with a chequebook.

When a cheque is mailed, a separate letter or "[[remittance advice]]" may be attached to inform the recipient of the purpose of the cheque&nbsp;– formally, which account receivable to credit the funds to. This is frequently done formally using a provided slip when paying a bill, or informally via a letter when sending an ad hoc cheque.