How to Write a Cheque in Canada: A Step-by-Step Guide

You’ve just rented your first apartment. Congratulations! The papers are signed, your boxes are packed, and you’re ready to move in. Then the landlord asks you for a cheque. While you’ve heard about cheques, you don’t have any, and you’re not really sure how to use one. Not to worry, we’ve got you. 

Here we explain what a cheque is, how to write a cheque step-by-step, and common mistakes to avoid when writing a cheque. 

What is a Cheque (and Why Are People Still Using Them?)

A cheque is a paper document that allows you to take money from your chequing account and transfer it to someone else, such as a landlord, friend, or the government. It’s basically a written promise from one person to another, stating that they’ll pay the specified amount. 

While the use of paper cheques is on a steady decline, they’re still one of the most popular payment methods for business owners in Canada. 

Common situations where cheques are still required or preferred in Canada include:

• Rent. Your landlord might request post-dated cheques to ensure timely monthly payments. A post-dated cheque is when you put a future date for when you want the cheque to be deposited.

• Childcare. Many daycares have traditionally asked for cheques and may continue to request them to avoid more expensive processing fees that come with credit cards.  

• Businesses and contractors. Businesses with larger invoices may request cheques to avoid daily maximum limits associated with e-transfers. 

• Government. You can make payments to the provincial or federal government using a cheque. The government also continues to issue cheques to Canadians who choose not to provide their banking information for direct deposit.

What You Need Before Writing a Cheque

In order to fill out a cheque, you’ll need the following: 

• Chequebook: This is a book of paper cheques that you can order through your bank. Most banks let you request a chequebook online.

• Pen: When filling out a cheque, use a black or blue ballpoint pen. The dark ink helps to ensure your writing shows up clearly on the cheque and can prevent fraud, as it’s harder to erase or write over.   

• Payee name and amount: You also need to know the name of the person or the business that you’re addressing the cheque to, and the amount of money you intend to pay. 

How to Write a Cheque in Canada: Step-by-Step

Here’s a complete guide on how to fill out a cheque in Canada. 

Step 1: Write the Date

The date line is typically in the upper right-hand corner of the cheque. It should be written using one of the following formats as outlined by the Canadian Payment Association: YYYYMMDD, MMDDYYYY, and DDMMYYYY. The date you put on the cheque shows when the receiver is able to deposit it.

Step 2: Write the Payee’s Name

The payee is the person or business who will be cashing the cheque. Make sure the name you use is accurate and avoid nicknames or abbreviations. 

Step 3: Write the Amount in Numbers

You’ll see a dollar symbol on the cheque. This is where you write the amount you want taken out of your account in dollars and cents. For example, $100.50. Make sure your numbers are written clearly to avoid processing the wrong amount. To reduce the risk of someone being able to alter the amount written on the cheque, you can draw a line through any remaining blank space (see the example below), though this step is optional.

Step 4: Write the Amount in Words

Under the payee’s name, there’s a space to write the payment amount in words. You write “One hundred dollars and fifty cents” or, you can also write it as “One hundred dollars and 50/100.” 

Step 5: Add a Memo (Optional)

There’s also a line where you can add an optional memo. This can be a helpful way to remember what the cheque is for. For example, you may write “January rent” or an invoice number if you’re paying a contractor. 

Step 6: Sign the Cheque 

The final step is to sign the cheque. This is typically done on the bottom right hand corner. Make sure you use the same signature that your financial institution has on file. Without a signature, your cheque is invalid and cannot be deposited.

Below is a visual example of what a completed cheque should look like, including where to write the date, payee name, amount in numbers and words, memo, and signature:

Common Cheque-Writing Mistakes to Avoid 

To avoid any issues with your cheque being deposited, try to avoid these common mistakes: 

• Mismatched amounts. Make sure the dollar and cent amount you write in numbers (e.g. $100.50) matches the amount you write in words (“One hundred dollars and fifty cents). 

• Leaving blank spaces. Blank spaces on a cheque leave an opening for someone to alter the information. 

• Post-dating a cheque. If a mistake is made, and your bank cashes the cheque before the date indicated, you might get charged with a non-sufficient-fund fee if you don’t have enough money in your account to cover it. In this case, you should contact your bank to let them know. 

• Using a pencil. Pencil can be easily erased or altered. This can lead to potential fraud issues. For example, the dollar amount could be replaced with a higher amount, and the payee could be changed to someone else.

What to Do If You Make a Mistake When Writing a Cheque

If you make a mistake when filling out a cheque, the good news is that a small error doesn’t automatically mean you need to throw the cheque away. What you should do depends on what kind of mistake you made:

If You Make a Small Writing Error

If you make a minor mistake, such as a spelling error in the payee’s name or a small correction to the memo:

• Draw a single line through the incorrect information

• Write the correct information clearly beside it

• Write your initials next to the correction

This shows the bank that the change was intentional and approved by you. However, not all banks accept altered cheques, so if the payment is important or time-sensitive, it’s often safer to start over with a new cheque.

If the Amount Is Incorrect

If the dollar amount written in numbers doesn’t match the amount written in words, banks usually rely on the written (worded) amount. That said, a mismatch can delay processing or cause the cheque to be rejected.

If you notice this mistake:

• It’s best to void the cheque (by writing “VOID” across the front) and write a new one

• Avoid trying to correct both amounts, as this can raise red flags for fraud

If You Used the Wrong Date or Payee

If you’ve written the wrong date or made a significant error in the payee’s name:

• Void the cheque by writing “VOID” across the front

• Write a new cheque with the correct details

Major changes increase the risk of the cheque being declined.

How to Void a Cheque (and When You Might Need To)

A void cheque is a cheque with the word “VOID” written across the front. Because cheques include your banking information, you may be asked to provide a void cheque when setting up things like direct deposit or automatic bill payments, for example, when starting a new job or renting an apartment. Writing “VOID” across the cheque ensures your banking details can be shared without the cheque being used for payment.

Below is a visual example of a void cheque, with “VOID” written across the front to prevent it from being deposited.

Are Cheques Safe to Use?

While cheques are generally safe, they aren’t without risk. 

Cheques are slower than other payments, such as e-transfers, because they have to be “cleared” by your bank. This process involves reviewing the accuracy of the information on the cheque and ensuring there’s enough money in your account. 

Fraudsters can take advantage of the time between when a cheque is deposited and when it’s cleared to commit various types of fraud. Criminals can also steal cheques or change the name or amount on a cheque. 

Unless you’re required to use a cheque, e-transfers and direct deposits are generally safer (and faster) methods of payment. 

Final Thoughts: Writing a Cheque is Still a Useful Skill

If you’ve never seen a paper cheque, let alone used one, you’re not alone. With so many digital payment options, cheques are on the decline, but there are still situations where you might need to use one. 

Knowing how to properly use a cheque means you’re prepared for anything. And let’s be real – if you’ve mastered a smartphone, writing a cheque is going to be easy by comparison.