Which amount on a check is the legal amount

They signed the check and mailed it to me to cash. In the event of a discrepancy between the written and numerical amounts on a check or other negotiable instrument , the written amount legally takes precedence over the numerical amount. The Uniform Commercial Code states:. If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.

It is technically valid, but the discrepancy could cause it to be rejected by the bank when it is deposited. I gather you are from the US, as you spell it check whilst in Australia we spell it cheque, but I am sure the rules should be the same in Australia as in the US in regargds to your question.

If the word and number amounts are different the bank or financial institution won't accept the check, so you either have to get the person who issued and signed the check to correct one of the amounts so that both amounts are the same and initial the correction, or else get them to send you a new check with both amounts matching and destroy the first check.

You will probably have less troubles though with a brand new check. This answer is based on my recent experience past 6 months depositing a check in the U.

The check was deposited via an online transaction with a scanned image. The discrepancy was not caught by the bank until a few days later and I received an email notifying me of the error. The check was accepted by the bank, however at the amount spelled-out in words. I spoke personally with a bank representative who informed me that the check was indeed valid as written but the spelled-out amount takes precedent.

This seems like a bizarre protocol to me as it will almost surely result in some party experiencing an unexpected transaction amount. That being said, and to answer the question, if the spelled-out amount is correct you should let the other party know about the discrepancy, let them know you intend to deposit it that way, and go ahead an deposit it making sure to check no pun intended with your bank that they'll accept it as-is and not accuse you of fraud.

A new cheque is suggested. In many countries, in case of mismatch amount in word is accepted. In few countries, these cheques are rejected. Suggest, get a new cheque. If you have to get the old cheque initialed, you will have to send them the cheque and get it back.

A check or draft must describe a certain sum of money to be paid to the drawer the person presenting it. If there is ambiguity about the amount of money to be paid, it is not valid. In the United States, according to the Uniform Commercial Code, when there is a difference between the words and the numerals, the words are what counts. Sign up to join this community. The best answers are voted up and rise to the top. Stack Overflow for Teams — Collaborate and share knowledge with a private group.

Create a free Team What is Teams? Learn more. What if I received a check with two different amounts written on it words vs. Ask Question. Asked 9 years, 9 months ago. Active 5 years, 11 months ago. Viewed 48k times. Do both of us have to sign the back of the check? Learn more about bank accounts. Search for your question Search for your question.

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By Justin Pritchard. Justin Pritchard, CFP, is a fee-only advisor and an expert on personal finance. He covers banking, loans, investing, mortgages, and more for The Balance. He has an MBA from the University of Colorado, and has worked for credit unions and large financial firms, in addition to writing about personal finance for more than two decades. Learn about our editorial policies. Reviewed by Amy Drury. Article Reviewed September 06, Learn about our Financial Review Board.

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