How to Write a Cheque in Canada

The Correct Way to Write a Cheque

Before we get into the details of writing cheques, it is important to note what a cheque is and how it works. Essentially, a cheque is a way for the payer to authorize the payee to withdraw funds from their bank account, usually a chequing account. While it is more common these days to use an E-transfer, cheques are still around.

When it comes to filling out a cheque, there are a few key things to remember. The first being that it won’t be valid unless it is filled out correctly. Let’s go over what is required to make the cheque valid.

1. For a cheque to be valid, it must be dated. The space for this is usually located in the top right corner. There will be a line next to the word date. This is where you will write the date you wrote the cheque.
2. The next thing you want to write is to whom you are making the cheque payable. This is the person who will be cashing the cheque. Usually located under the cheque issuer’s information in the left-hand corner, there will be a line that says “Pay to the order of”. This is where you put the recipient’s information.
3. After that, you are going to want to enter the dollar amount in numbers that you want taken out of your account. You will see a dollar sign ($). It is important that, when entering this number, you include the cents to 2 decimal places. An example of this would be $100.00. $100 or $100.0 would be seen as incorrect.
4. Once you have entered the amount in numbers, write it as well. Under the recipient’s name, there will be a place to write the amount. For example, if the amount is $100.20, you would write “One hundred dollars and twenty cents” or “One hundred dollars and 20/100”. You can use whichever option you prefer.
5. Now that you have done all that, the next step is to sign the cheque. This is the final step to validating it. There will be a line at the bottom right corner where you sign the cheque. Be sure to use a legible signature you would normally use for your bank documents.
6. Lastly, there is the option to add a memo. This is optional, but you can add what the cheque is for if you choose.

Once you have written and given the cheque, the recipient has a limited time before the cheque becomes invalid. How long is a cheque valid for? Well, it only stays valid for 6 months. After that, a new one will have to be issued.

Writing on the Back of the Cheque

If you flip the cheque over, you will notice a line for a signature. This line is meant for the payee, also known as the recipient. The recipient of the cheque is to sign the back, known as the endorsement signature. This notifies the institution that the payee has received the cheque and is authorizing it to be cashed.

What to Do About a Mistake on the Cheque

If you make a mistake when writing the cheque details, the easiest thing to do is rip it up and write a new one. That, however, isn’t your only option. Another thing you can do is cross out the mistake, then write the correct thing above or beside it. Whichever space has more room. It is important to remember that you must initial the change on the cheque, or it may not be accepted.

Filling Out Cheques from Different Financial Institutions

While many people think that cheques vary across institutions, the reality is that most of them look the same. There will be identifying features that indicate where the cheque is from, as well as the layout of where the information is to be written and what information is to be put on the cheque.

The main difference you will find on your cheque, whether it is from TD, RBC, CIBC, Scotiabank, BMO or any other financial institution, is the numbers on the bottom. These numbers contain your bank account information, such as the branch number, transit number and account number. They tell the bank where to take the money from when the cheque gets cashed.

Voiding a Cheque to Set Up Direct Deposit

Another reason someone may use a cheque is to use it as a void cheque. Basically, a void cheque works just like a direct deposit form. It even works for getting a loan, purchasing a vehicle, or making any other large purchase, including monthly insurance payments. It allows the lender to take the money from your account as automatic monthly payments.

This will show as a debit transaction on your account statement and is considered an electronic payment. It is treated differently from an online payment because it is processed automatically and isn’t processed as one.

To fill out a void cheque, all you need to do is take a blank cheque and write VOID on it. If you do not have any cheques, you can print off a direct deposit slip from your online banking. Some places only require you to provide the transit number, branch number, and account number, which you can also find in your online banking.

Are There Limits on Cheque Amounts?

The great thing about cheques, unlike E-transfer, is that there is no amount limit. This is why cheques are still used for things like rent, especially in this economy. Since the limit on E-transfers is $3000.

This is also why large companies tend to use cheques. Often, the cheques they write, whether for business expenses or not, are for large amounts.

Unlike E-transfers, though, many people can’t access the funds immediately because transfers between institutions take a few days. In some cases, you may have no holds on your account, so you can use the funds immediately. This can be risky, though, in case the cheque bounces.

Process for When a Cheque Bounces

Because it takes a few days for a cheque to be processed, you may have enough money in your account when you write the cheque, but not once it is cashed. That can be an issue with cheques. You don’t really have much control when the other person cashes it.

If they cash it and you do not have enough money in your account, then that will result in an NSF (Non-Sufficient Funds) fee. The amount of this fee ultimately depends on your financial institution.

• TD- $35
• Scotiabank-$48
• CIBC- $45
• RBC- $45
• BMO- $48

This is one of the reasons many Canadian banks and credit unions place holds on cheques before you have access to the funds. This protects both you and the person who wrote the cheque.

Cheque Holds

Cheque holds are actually very common. Especially if you are receiving a cheque from someone you haven’t received one from before. While it may be super frustrating, it is important to remember that it is done to protect you more so than the person who wrote the cheque.

If the cheque was cashed without a hold and you spent the money, and it was later discovered that the person who wrote the cheque didn’t have the money in their account, you are on the hook for the amount you spent.

The time a cheque is held can range from 4 to 8 business days. If you are unable to wait that long and have never received a cheque from the company or person before, you may be better off asking for a different form of payment.

While financial institutions can hold cheques at their discretion, they won’t always hold them. Don’t be so quick to turn down a cheque hold if you aren’t sure the cheque issuer is reliable. Keep in mind that how you cash cheques will also affect whether they are held, especially if you get frequent cheques from the issuer.

How to Stop a Cheque After You Have Written It

If you have written a cheque that was lost or stolen, or that you no longer have the funds to cover, you should place a stop payment on it. A stop payment often incurs a charge and may not work depending on when the cheque was cashed.

It is important to stop payment and report any stolen cheques as soon as you realize they have been stolen. Unfortunately, Canadian bank fraud and cheque fraud are a thing, and fraudsters will use stolen cheques to withdraw money from your account. So, whether the cheque was used or not, you should report it to the bank, and a stop payment will be issued if required.

A stop payment works by preventing the cheque from being debited from your account and deposited into the receiver’s account. To request a stop payment, there are a few key pieces of information that you need to have:

• The cheque number
• The exact amount of the cheque
• Name of the payer/receiver of the cheque
• Date of the cheque

If the stop payment does not go through in time, then the receiving party will be notified. It will also be up to you to contact the recipient to try to get the money back if the cheque has already been cashed into the account. You are still responsible for that money. The receiver likely can’t spend the money from the cheque you gave them, and you will need to provide it.

Are Cheques Still Accepted in Canada in 2026?

While digital payments are becoming more popular, paper cheques are still accepted. That said, paper cheques aren’t accepted by everyone, such as businesses and landlords. Banks are still required to accept themm of payment, though., though 

How Long is a Personal Cheque Valid in Canada

While personal cheques don’t technically expire in Canada, they do become stale-dated. A cheque is considered stale-dated by banks when it is 6 months old or older. After this time, they can either refuse to cash the cheque or choose to do so. 

Writing a Cheque With No Money in Your Account

While writing a cheque when you have no money in your account isn’t illegal, it can be risky. This is because when the cheque is returned unpaid from your account, you will be charged an NSF (insufficient funds) fee. These charges can range from $35 to $50, and, depending on the bank, you may also incur credit damage if it’s reported to the credit bureaus. 

The Difference Between Certified Cheques and Bank Drafts

While certified cheques and bank drafts are very similar, there are some differences. 

The Rules Regarding Post-Dated Cheques

Post-dated cheques are a common way to organize payment amounts for a future date. As long as you fill out the cheque correctly and it’s done in permanent ink with the payee’s name. You should also be sure that you have enough funds in your account to cover the amount in the amount box. 

When it comes to postdated cheques, you can date them for any future date. If you’re going to do this, it’s a good idea to keep track of it in your chequebook for your records, especially since these cheques will be automatically cleared. 

Writing a Cheque to Yourself

Writing a cheque to yourself is a pretty simple process. 

• In the top right-hand corner, you write the current date
• You write your full name on the pay to the order of line
• You should write the amount in words as well as numbers
• Write an optional note in the bottom left-hand corner
• Sign your name in the bottom left-hand corner

Mobile Cheque Deposit

As long as your cheque doesn’t have any common cheque writing mistakes, you can deposit it quickly online using your mobile phone app. This is quickly becoming the most popular way to deposit a cheque. You will be required to take pictures of both the front and the back of the cheque. The program will check for altered cheques, mismatched amounts, the correct amount in the small box, writing in dark ink instead of pencil, and blank spaces. 

If the program detects anything out of the ordinary, the cheque will be rejected and they won’t draw the funds. If you’re able to fix any common mistakes, you can try depositing the cheque again. After you deposit it, you should still keep a copy for your records. 

What to Do if You Lose a Written Cheque

If you lost a cheque you wrote, you should cancel it right away by placing a stop payment on it. You can then issue a replacement cheque. 

If someone else wrote the cheque, then you’ll need to contact the issuer right away. An invoice number may be required, and you can request a reissue. 

Cheque Fraud Warning Signs to Watch For

To prevent fraud, the best thing you can do is learn the warning signs. These include:

• Being pressured to file a cheque
• Receiving unsolicited cheques
• Being asked to deposit a cheque and wire money back
• Receiving third-party cheques

They can be very handy to make a deposit, pay rent or even just as a void cheque to set up automatic monthly payments. As long as you fill out a cheque properly, then you shouldn’t have any problems using it. Just keep in mind that you need to keep the amount you wrote the cheque for in your account at all times to avoid an NSF fee. No matter the reason you need to cash one or use one, hopefully, these tips can help you understand how to use them and what the possible risks are.