Writing a check out to cash is performed in the same manner in which you would write out a check to yourself or another individual or business.  A key difference between writing out a check to cash versus writing a check to someone else is the endorsement requirement and the risk of loss.

Unless you’re writing a check to cash directly at the bank where the checking account is based, writing a check to cash is a risky move.  Anyone can cash a check that is signed and has the payee field addressed to cash.  A check payable to cash is essentially a bearer instrument.  These checks the do not require an endorsement and anyone who has the check can cash it.  If the check written to cash is lost or someone steals the check, they can just go to their bank and redeem it.  This is in contrast to a check that is written to you in which you need to endorse it with your signature on the back before you can cash the check.

Some banks will require the endorsement on the back of the check payable to cash but it is not mandatory that the bank have such a rule.  Common banking practices are that the bank will require the person negotiating the check to endorse it.  Even though the law does not require it, the bank can.  The endorsement is done as a way of preventing any loss or check fraud.

The process of writing a check payable to cash involves just a few steps that follow the process for writing a check to anyone.  The check writers needs to enter the current date, enter the term ”cash” in the payee field, enter the amount of the check in numerical form, write out the amount of the check in words and sign the check.

Always be extra vigilant went writing a check out to cash to avoid fraud or the aggravation of placing a stop payment on the check should it be lost.

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