Make sure that the written amount is exactly the same as the numerical amount. If the two differ, the written amount is considered legally binding. Be as specific as possible when you write the name of the payee. For example, if you have a mortgage and a credit card account at the XYZ Savings and Loan and you send in a check payable to XYZ Savings and Loan, it may be credited to either account. Your check will be returned to the person or business you wrote it to because of insufficient funds in your account.
Bounced checks are costly.
The bank charges you for the returned checks, and the business you wrote the check to also may charge you. If you have a pattern of bounced checks, businesses may refuse to accept your checks and your financial institution may close your account. Avoid overdrafts by keeping accurate records of all the money you put into your account as well as records of all withdrawals you have made, including all checks you have written. To get a cashier's check, go to the bank, request a cashier's check, and pay the bank for the amount of the check plus a service charge or fee. Keep your copy of the check as proof of payment.