Best Practice Guidelines

For Infilling Cheques:

Cheques must be infilled in a way that deters fraudulent alteration. Always use black ink when infilling a cheque. Particular attention should be given to the following specifics:

Payee Name
  • The payee name should always be left justified. The payee name may be terminated by adding the word ‘only’ after it or the space to the right of the name should be filled with asterisks or ruled through with one, or preferably a pair of horizontal parallel lines close together. Where two lines are allowed for a payee name, the second should be treated as a continuation of the first and asterisk filled or ruled through, even if the name does not overflow into the second line.
  • If a name and address appears on the cheque, eg for use in a window envelope, then the payee name must appear separately even if it is the same as the name in the address field.

Amount in Words
  • The amount in words should spell out in full at least the pounds part of the amount in figures, eg. £**43540-10 = ‘forty three thousand five hundred and forty pounds 10p.
  • The practice of having separate boxes to be filled with values ‘Zero’ to ‘Nine’ is not recommended. However, if they are used then all boxes must be completed to reduce the risk of fraudulent alteration.

Amount in Figures
  • When completed on a computer or by typewriter, the amount in figures should be preceded and followed by two asterisks and left justified in the Amount Box, taking care that the left most asterisk does not touch or over write the ‘£’ symbol which is to the left of, and just outside the Amount Box. The amount should not include commas and the pounds/pence separator should be a hyphen.
  • Where more than one sheet is used to list the invoices to which the payment relates, all unused cheques must be CANCELLED or otherwise infilled in such a way that they could not be fraudulently misused.

Control of Cheques:
  • Ensure cheques are kept in a safe or a secure cabinet, particularly overnight.
  • Do not permit anyone to take blank cheques home with them, at any time.
  • Ensure that cheques have been removed from the computer printer after use and stored securely.
  • Ensure that cheque completion is properly supervised at all times.
  • Never leave cheques, whether signed or unsigned, on a desk unattended.
  • Avoid holding excess stock and shred any obsolete stock.
  • Take care to check against the possibility of individual cheques being removed from the middle of cheque books or from runs of computer cheque forms.
  • Ensure that spoiled cheques are properly accounted for and destroyed.
  • Undertake regular audits of cheque stock. Any discrepancies should be investigated and the bank advised.

Handwriting or Signing a Cheque
  • Always use indelible pen (ball-point) or permanent ink to complete cheques.
  • Never use felt-tip pens, ‘erasable’ pens or pencils on cheques.