A check is a written, signed, and dated document to direct a bank, credit union, or other relevant financial institution to pay a specific amount of money to the bearer. When you write a check, you are the payor or drawer, while the payee is the person receiving the check. On the other hand, the drawee is the bank or any other financial company where the check is drawn. Today I will show you how to cash a check online instantly without a bank account.
Cashing a check is obtaining money from a check. The process comes with processing fees, usually a small percentage of the amount to be withdrawn. And for your information, you can cash a check or deposit it in our account. When you cash a check, you get the money contained in the check to go and spend in your way. On the other hand, the funds go to your bank or credit union account when you deposit a check.
It is essential to understand that checks eliminate paying people with cash. They leave proof that you made a specific payment to a particular person or company. Therefore, if there is any conflict about the payment, you can go to the records and settle the issue. Even though checks are getting outdated due to other digital money transfer platforms, they remain relevant. There are lots of people who still embrace using checks to make payments.
How to write a check?
Writing a check is straightforward. In most cases, you need a checking account to write one. A checking account is a bank account that allows you to access money 24/7. You can withdraw money from such accounts over the counter or at the ATM. When you open a checking account, you usually get a checkbook from where you will be writing and plucking checks to pay people.
So now, when writing a check, you can follow the steps below.
i) Start with the dates
Very important when writing a check. The day’s dates should be included in the check and should be placed on the top right-hand corner of your check. The date helps the bank or any other relevant financial company know when you wrote the check.
ii) Write the name of the beneficiary
You are writing the check for someone or a business. You need to include the name of the one who will benefit from the money. Using a check is one of the best ways to transfer money to someone else’s bank account. When they deposit the check-in of their bank account, the cashier draws money from your account to deposit it in the payee’s account.
Writing the beneficiary’s name helps prevent others from cashing out the check if it gets lost accidentally. You can also use “cash” if you do not know the person to benefit from the check. However, anybody can get money out of the document, thus leading to loss. Therefore, writing the name of the beneficiary remains the best option.
iii) Write the payment amount in numbers
The next step is writing the payment amount in figures in the space provided, whereby you should write the exact amount with cents and dollars separated by a dot. That will help your bank or other financial institution deduct money from your account.
iv) Write the amount in words
After writing the payment amount in numbers, you must write the amount in words. That makes sure that no one will alter the figures to go against the amount written in words. Just below the line “Pay to the order of,” is where you write the dollar amount in words to match the dollar amount you wrote in numbers. Any financial company can reject a check where the payment amount is not written in words.
v) Write a memo
Even though this step is optional, it is essential to let the beneficiary know the reason for payment. It is suitable for the records anyway. You can include phrases like “payment of school fees, paying for rent, paying for electricity,” and so on.
When paying bills, some companies will ask you to write your account number in the space provided for writing a memo to ensure that the funds reflect your name.
vi) Sign the check
If you forget this step, then the check will be useless paper. You should sign it to show that you authorize the indicated amount of money withdrawal. Make sure you sign at the bottom right-hand corner using the same sign you used when opening your checking account. The cashier must compare the signatures before debiting your account.
You will have completed writing your check to pay someone as simple as that. You can deposit a check from a particular bank in another bank for your information. And by the way, using a check is the best way to transfer money between banks. However, it may take longer for the money to reach the payee, especially if the check must be posted by mail.
How can I cash a check online instantly without a bank account?
I have discussed how to deposit or cash out your check-in a bank or credit union account. However, you must not deposit in a bank or credit union since you can deposit it online using mobile money wallets.
Several mobile money apps allow you to deposit checks. They include Cash App, PayPal, Payoneer, Venmo, and Square. To deposit a check in these apps, you need first to sign the back and then use an inbuilt camera system to capture images of the check. You then upload them to the system for processing. The funds reflect within the stipulated time as per the app’s terms and conditions.
How does a check work?
The operation of the document is simple. Once you write a check for someone, they take it to a bank, credit union or use the mobile wallets deposit feature to get money out of the account affiliated to the check. It has to be processed whereby the drawer checks whether the account has the right amount to facilitate the transaction. That means they communicate with the payor’s bank to facilitate the transfer.
When you write a check, the beneficiary deposits it to their bank account. The bank then sends it to a clearing unit such as a Federal Reserve Bank, which debits your account and credits the payee. After that, the check returns to your bank, where it is stored waiting for destruction.
Checks usually have the routing and account numbers printed at the bottom. If someone sends you a check, you can transfer money using the routing number and account number to pay them where necessary. The routing number helps identify the receiving bank, while the account number identifies the recipient explicitly in a particular bank.
How many types of checks do we have?
There are two main types which include;
- Cashier’s check
- Regular check
The cashier’s one is a special type whereby the payor immediately pays for it they request before sending it to the payee. Such checks are processed fast when they reach the processing financial institution.
On the other hand, regular checks only draw money from the payor’s account when they are processed. If no one deposits the check, then your balance in your account stays intact.
What are the alternatives to checks?
There are other ways you can use to make payments to others. For your information, checks are becoming outdated because we have faster transfer methods. The following are ways you can send money instead of using checks. Have a look.
Paypal is a money transfer platform that allows you to send money immediately to recipients within the country or outside. The recipients can then cash out the funds in their bank or credit union accounts.
Venmo is a product of PayPal and allows you to send and receive the money within the US. Just like PayPal, you can withdraw money to your bank account once you receive it.
3) Cash App
Cash App allows you to transfer funds to your bank account. If you receive funds from someone on Cash App, you can use the instant transfer or 1-3 days transfer.
4) Payment cards
Credit, debit, and prepaid cards allow you to transfer money to other people online. For example, you can transfer money from a prepaid card to a bank account using the account’s routing and account numbers. However, you should be careful with using credit cards because they attract hefty fees.
We have many other methods to replace checks when transferring money, but the above can work excellently.
A check refers to a written, dated, and signed document to direct a financial institution to pay a certain amount of money to the bearer. The person who writes a check is the payor, while the beneficiary is the payee, and the receiving bank is the drawer. There are two main types of checks. They include the cashiers and the regular checks.