To write the payee name on a check, put the recipient’s full legal name (for a person) or exact registered name (for a business) on the “pay to the order of” line, matching what appears on their bank account. Under the Uniform Commercial Code, the payee is whoever the check writer intended, but banks compare the name you wrote against account records before releasing funds, so small mismatches cause real delays.1Cornell Law Institute. Uniform Commercial Code 3-110 – Identification of Person to Whom Instrument Is Payable
Paying an Individual
Use the first and last name shown on the recipient’s government-issued ID, which is usually what their bank has on file. Nicknames and abbreviations are the most common source of trouble: “Bobby Smith” for “Robert Smith,” or dropping a middle name the bank uses. When you’re not sure, ask the recipient how their name reads on their account.
The UCC is forgiving about small errors. A check is payable to the person the writer intended even if the name isn’t a perfect match, and a payee whose name is misspelled can endorse using the misspelled version, the correct version, or both. A bank accepting the deposit can require signatures in both names.2Cornell Law Institute. Uniform Commercial Code 3-204 – Indorsement So a typo is fixable. It just adds friction.
Honorifics like “Dr.” or “Mrs.” don’t cause problems, and they don’t help. Banks match on the legal name.
Paying a Business
Write the exact name registered on the business’s bank account, including the corporate suffix: “Inc.,” “LLC,” “Corp.,” or whatever the entity uses. A check to “Acme Services” will not deposit cleanly into an account titled “Acme Services LLC.” If the business operates under a trade name (a “doing business as” or DBA), use whichever version they’ve registered with their bank. Invoices and payment instructions almost always list the correct payee.
Abbreviations, shorthand, or the owner’s personal name in place of the business name are common mistakes that prevent the check from being credited. If a rejected check has already been mailed, you’ll usually need to stop payment on the original and issue a new one. Stop-payment fees at most banks run between $20 and $35.
Paying the IRS or a Government Agency
The IRS requires tax payments by check to be made payable to “U.S. Treasury,” not “Internal Revenue Service” or “IRS.” The check also needs your name, address, daytime phone number, the tax year, the relevant form number (such as “1040”), and your Social Security number or employer identification number. Without those details, the payment can be misapplied or lost.3Internal Revenue Service. Pay by Check or Money Order
For state and local government payments, follow the payee name printed on the bill, notice, or form. Some agencies accept the agency name; others require a specific department or account designation. Deviations usually leave the payment in limbo.
Two or More Payees: “And” versus “Or”
When a check names more than one person, the word between the names decides who has to endorse it. Use “and” and every person listed must sign. Use “or” and any one of them can handle the check alone.1Cornell Law Institute. Uniform Commercial Code 3-110 – Identification of Person to Whom Instrument Is Payable
This matters more than most people realize. A check to “Jane Doe and John Doe” cannot be cashed if one of them is traveling or uncooperative. Insurance companies and attorneys often use “and” on purpose so all parties sign off, which creates logistical headaches when people aren’t in the same place.
Ambiguous phrasing (for example, “Jane Doe / John Doe” with no conjunction) defaults under the UCC to treating the payees as alternatives, so either person can negotiate the check independently.1Cornell Law Institute. Uniform Commercial Code 3-110 – Identification of Person to Whom Instrument Is Payable When you’re the one writing the check, pick the conjunction on purpose.
Paying a Child
You can write a check to a minor using the child’s legal name. The complication lives on the deposit side. A minor generally cannot open a bank account alone, so a parent or guardian usually endorses on the child’s behalf: print the child’s name on the endorsement line, add the parent’s name and relationship below it, then sign. Each bank sets its own policy, so the parent should confirm the procedure before going to the teller.
If the child has a custodial account (a UTMA or UGMA), the check can go directly into that account with the custodian’s endorsement. Small birthday checks and similar gifts usually deposit without much fuss when the parent has an account at the same bank and can show ID linking them to the child.
Paying an Estate or Trust
For a deceased person, make the check payable to “Estate of [Full Name]” rather than to the individual. The executor or personal representative should have opened an estate bank account for exactly these deposits. Putting an estate check into someone’s personal account, even a surviving spouse’s, can create legal problems and may be treated as misuse of estate assets.
For a trust, match the exact name on the trust’s bank account. That’s usually the formal trust name, such as “The Smith Family Trust,” though some accounts include the trustee: “Jane Smith, Trustee of The Smith Family Trust.” Ask the trustee or the trust’s attorney for the precise account title. Any deviation typically bounces the check back.
Writing a Check to “Cash”
Writing “Cash” on the payee line creates what the law calls a bearer instrument. Anyone holding the physical check can present it for payment.4Cornell Law Institute. Uniform Commercial Code 3-109 – Payable to Bearer or to Order In practice, banks will still ask for identification, but the legal footing favors the holder more than you probably want to hand to a stranger.
The risk is straightforward. Lose a check made out to “Cash” and it’s effectively the same as losing currency, because no payee restriction stops someone else from cashing it. Most people only use this option standing at their own bank’s teller window to withdraw funds without writing their own name. In any other situation, name a specific payee.
Signing a Check Over to Someone Else
If you receive a check and want to pass the funds along, you can endorse the back with “Pay to the order of [New Recipient’s Name]” followed by your signature. This is a special endorsement, and it transfers the right to negotiate the check to that new person.2Cornell Law Institute. Uniform Commercial Code 3-204 – Indorsement
Many banks refuse third-party endorsed checks or impose extra verification because of the fraud risk. Have the recipient confirm with their bank before you endorse. Some banks want both the original payee and the new recipient present with identification, and mobile deposit rarely works for these checks. If the recipient’s bank won’t take it, deposit the check yourself and write a new one to the other person.
Fixing a Mistake on the Payee Line
The cleanest fix for any payee error is to void the check and write a new one. Crossing out a name and initialing the correction sometimes works, but most banks treat visible alterations as a tampering signal. Correction fluid or tape makes it worse. If the check has already been mailed, you’ll usually need to stop payment on the original and send a replacement.
On the recipient’s side, a misspelled name doesn’t automatically kill the check. The UCC allows endorsement in the name as written, the holder’s actual name, or both, and the depositing bank can require both signatures for added security.2Cornell Law Institute. Uniform Commercial Code 3-204 – Indorsement A minor spelling error shouldn’t require a fresh check if the recipient endorses carefully.