Why Write a Check Online Using Check API?

Did you ever think writing a check could be as simple as 2-3 clicks on your computer?

Yes, when you use a check API, the process becomes so convenient.

Picture this: automated check writing, printing, and mailing, enhanced security, and real-time tracking. With a check API you get this and more, all on your fingertips.

Sounds good, right?

Let us dive deep into the check API with this blog. We will discuss the benefits of using a check API to write a check. You will also learn some best practices that you should follow while writing a check.

Do you still write a check manually? A GoBankingRates study showed that 46% of Americans didn't write a check last year and the management of financial matters such as exchange is now moving to virtual channels.

The reason for switching to online check payment is when you write a check physically, you make it prone to errors such as spelling mistakes, post-dating, and overwriting. This can lead to bounced checks or banks rejecting the check. Hence, we suggest you use a check API to write a check.

Key Takeaways

• Using check API is a quick, efficient, cost-effective and secure way of writing a check instead of doing it physically.
  
• Add certain habits into practice such as mentioning the right date, never issuing a blank check, and more.
  
• Knowing the correct way to write a check can prevent it from getting rejected or bounced.

Automation of Process

With a check API, you don’t have to worry about manually adding payee details, amounts, or dates. The check API seamlessly integrates with your CRM or accounting software to fetch details and fill the check. You can say goodbye to spelling mistakes, illegible handwriting, and overwriting.

Aside from freeing you from the manual hassle, a check API also lets you set a timer for creating, printing, and mailing checks in advance. Set the date for the forthcoming payment and the check API will ask for your authorization on that date and send the check.

With a check API, you don’t have to worry about manually adding payee details, amounts, or dates. The check API seamlessly integrates with your CRM or accounting software to fetch details and fill the check. 

Customization

When you write a check physically, you have limited design options to choose from. This can restrict the ability to reflect your brand’s personality and advertise your service. 

A check API comes with Variable Data Printing (VDP) technology.  This technique allows you to alter the elements of the check be it texts or images as per your needs and preferences. You can also add your company logo, color, background image, and other branding elements to the check. This will help you highlight your brand's distinctiveness.

Security

A 2024 AFP Payments Fraud and Control Survey Report highlighted that checks are one of the most vulnerable payment methods to fraud. They can be easily altered by criminals using special inks. Moreover, the details on physical checks are visible. It can be easily read and copied by anyone who finds them.

A check API gives you a sense of security. You can create and print checks in a safe environment. Check APIs and add MICR line/code and other safety features like watermarks, holograms, and microprint to ensure enhanced safety when you write and print checks.

Moreover, when you create a check online using check APIs, it adheres to industry standards and protocols such as HIPAA, and SOC-II to ensure the highest level of data security throughout the process.

Save Time

Check API automates check writing and printing and helps save time. You don’t have to manually enter every field. With API integration, details from your existing CRM, accounting, and payroll software are automatically collected. Moreover, check API facilitates batch processing. You can send multiple check-writing requests in one go. 

When you write a check manually, you will have to enter the name of the person, amounts, and other such details carefully. What if you are a business owner who has to issue multiple checks? In this case, this process will become repetitive and take up a lot of your time. Moreover, if you make a mistake like adding an incorrect amount or misspelling the name, then you will have to reissue the checks. This will further delay the payment process.

In this case, a check API can come to your rescue. By integrating with your existing CRM or accounting software, the check API will automatically populate the fields. This will eliminate the need for manual entry, thus saving you time and ensuring timely payment. All you have to do is add and verify your business and bank details and you are good to go.

Why exhaust yourself and waste time writing a check from scratch when you have a check API to speed up the process for you? 

Scalability

When you write a check physically, you can only work on a limited number. In situations where you have to issue multiple checks at a time such as sending salary to your employees, the manual method might not be the right choice. This is where a business check mailing API can help you. It will allow you to handle large volumes of payments simultaneously by issuing and managing multiple checks in batches. Check API uses automation, so you don’t have to restrict yourself to writing a few checks especially when your business is expanding.

Moreover, check APIs like PostGrid allow sending international checks. You can pay your vendors, clients, and partners, anywhere in the world. It allows you to expand your customer base without geographical limitations.

Free From Errors

Writing a check manually means you have to be very careful when adding the details of the payee. A small mistake in spelling or an increased amount will force you to issue a new check.

Every detail entered in the check through a check API is accurate and up-to-date. As mentioned above, it will integrate with your accounting and payroll system to fetch information and add it to the check. You can also upload CSV files securely on a check API portal. Since there is no manual data entry, check API leaves no room for typographical errors or inconsistencies.

No Storage Hassle

You should have sufficient stock of ideal paper, MICR ink, MICR stamps, envelopes, and labels for manual check processing. You will also have to maintain storage space. 

If you are running a business,  you will have to expand the storage as the transaction volume grows. It will multiply your storage requirements and add to the expense. 

A check API will save you from the burden of having to maintain a storage system. From creating and printing to mailing the check, the API will work smoothly without you needing to manage an inventory. Since the check API handles the stock management, you can write a check free from any worry about where all the required items come from. 

 Also Read: What is a Utility Bill: Your Complete Guide

Cost-effective

There are various costs associated with writing a check physically. Take, for instance, you run a business. In this case, you will have to pay your administrative staff for writing checks. Other than this, you will also have to bear the cost of paper and office supplies that are needed for writing the check. Moreover, there are mailing costs such as postage fees and envelope costs.

A check API, on the other hand, will cost you relatively less. The service provider will write, print, and mail the check for you. Hence, you don’t have to worry about labor and office supply costs.

If you are looking for a check API service provider that does not demand any minimum fee or has a hidden cost, talk to our sales team to know how PostGrid can help you.

Keep Track of Your Balance

If you don’t want to end up with a bounced or dishonored check, make sure you have sufficient funds in your bank account. Keep a tab on your dollars and cents in your checking account. Ensure you have an amount higher than or equal to the one you wrote the check for to avoid bouncing a check. 

Check is a legal document. Hence. if you issue a check for an amount that is not in your account, you might face legal repercussions. The seriousness of the consequences will vary based on specific state laws. Take for instance, a bad check might lead to three months in jail in New York, but in Texas, you might have to serve two years in jail with a penalty of $10,000.

Now every bank has a mobile app which you can download to keep an eye on your bank balance and check the bank account statement as well. You can also sign up for online banking to have all the data at your fingertips.

Write Date Correctly

Make sure you mention the date of issuing the check correctly when you fill out a check. An incorrect date will lead to delays or rejection from the recipient’s bank. A correct date will also prove helpful in maintaining financial records and verifying transactions.

Consistent Signature

To avoid bounced checks, make sure the signature matches the one you have submitted to the bank when creating an account. Failing to do so can lead to the bank rejecting the check and a delay in the payment.

We understand how much of a hassle it might be to sign a number of checks, especially if it involves a high volume of transactions to different parties. This is where a check API can help you. Just add your bank details and signature once and you can print as many as checks you want. Why worry about the volume when you can create a cheque online using the check API?

Avoid Post-Dating

Try not to postdate a check. Post-dating someone a check means when you write a future date on the check, intending to deposit it or encash it on or after that date. Not every bank or financial institution considers postdated checks and there is a strong possibility that your check might be returned. We suggest being careful in adding the date for when you want to deposit the check and intend for the cash to be transferred to the recipients. 

💡Also Read: Echeck Payment Methods for Finance

Record Transactions

Record every check you make and deposit. Write the name of the recipient, the check number, the account number to whom you have issued the check, and the payment amount. It will serve as proof of payment, help you track your spending, and spot any fraudulent activity. 

You can also use checkbooks that come with carbon copies. When you write a check on it, a carbon copy of the check is created. You can keep it to yourself for future reference.

You can also use the check register. Also known as a cash disbursement journal, it has a record of all transactions in a checking account. You can write the recipient's name, the purpose for cashing or depositing the check, debit card purchases, and more.

Don’t Issue a Blank Check

Make sure your check is not blank as that will expose it to unauthorized people who can cash the check. They can add a payee or write the monetary amount at their convenience, leading to significant financial loss. Always issue a properly filed check only to trusted recipients. If you have already written a check, but don't want it to be used, write “void”.

Use Permanent ink to fill out a Check

To prevent any possibility of alterations or fraud, use permanent ink to fill in the details and sign the check. The permanent ink is difficult to come off. This ensures that the integrity of the information mentioned in the check is maintained. 

If despite this, the thought of getting trapped in a fraud scares you, you should learn how to make a check online using check API. As mentioned above, check printing online using a check API comes with a set of security features that will ensure that your check is designed, printed, and mailed securely.

Add Overdraft Protection

If you have to urgently deposit a check but your account does not have sufficient funds, it is helpful to write a check with overdraft protection. Overdraft protection is a service that banks offer in situations where the amount of the check is higher than the bank balance. The bank with either give you a small loan or deduct this amount from your other account. This will prevent the bouncing of the check. 

 Also Read: How to Use a Legal Memo Format in Legal Writing (Template)

Prevent Check Amount From Increasing

Always write out the dollar and cents on the check in a way that leaves no room for any fraudster to increase it. Write the exact amount on the check in the designated area in a manner that fills up all the space. Moreover, make sure to draw a line after the amount. It prevents criminals from adding numbers to the amount and cash or depositing a check. Ensure that the amount is correct and sign the check on the line provided at the bottom.

 Also Read: eCheck: Everything You Need To Know

Source: Forbes

Writing a check for the first time?

Let us take an example to better understand how to write a check.  

Suppose you have to pay the October utility bill of $150 to the city’s utility department. You will receive a statement via email or mail along with instructions to make the payment. This statement will have all the information you need to fill in the check. Mentioned below is a step-by-step guide for how you will fill out a check using the check mentioned in the image above. 

• Date: Write the date you intend to issue the check in the upper right-hand corner.
  
• Pay to the order of: Write out the full name of the person or organization. In this case, the name on the check will be the city’s utility department.
  
• Amount (in numbers): Write the amount in digits in a way that takes up all the space of the box. In this case, the numerical dollar amount would be 150. There is no need to write a dollar; as you can see, the dollar sign is already on the check. If you are writing your check with cents, write the number of dollars, followed by a period, and then add the cent amount.
  
• Amount (in words): Write out the amount in words in the given space below the “pay to the order”. In this case, write out one hundred and fifty. Make sure to utilize the complete space while writing the amount in words to prevent anyone from adding to the amount. When you have to write a check with cents, first you need to write the dollar in words, then write the number of cents, followed by a slash and the number 100.
  
• Memo: While completely optional, this space is at the left bottom of the check and right above the nine-digit routing number. It can help you keep track of where the check is going. This is useful in situations where you need to write a check for paying utility bills or taxes. In this case, you can write “October Utility Bill”.
  
• Signature: The box next to the memo, in the right corner of the check, is where you will add your signature. Unless you sign a check, it is a voided check and holds no value. Make sure to write the same signature that you have submitted to the bank. 

 Also Read: Parts of a Check You Must Know to Write Checks

Check-writing does not have to be an overwhelming activity. You can follow the best practices mentioned above to ensure accuracy, security, and smooth payment processing. However, some people stress out when they have to write a paper check. It may be because they have to write multiple checks at a time. A better alternative would be to learn how to write a check online using a check API like the one offered by PostGrid. It offers a safe and secure method to create, print, and mail checks saving you time, and money. 

Want to know more about how to make a check online with PostGrid’s print and mail check API? Request a demo to change the way you have been creating, printing, and mailing checks.