How to read a cheque is an important part of banking. However, different countries use different formats and combinations of numbers.
In this article, we’re going to focus on how to read a cheque in Canada, which will include reference to transit and institution codes.
This article is part of our free series on how to send and receive money, including bank checks, bank transfers, and more, which you can access by clicking here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How to Read a Cheque
- Reading Cheques
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
How to Read a Cheque
To read a cheque, you will need to know three pieces of written data and five pieces of numeric data. Written data is inserted by the issuing party and includes the recipient’s name, the amount being paid, and an optional memo related to the purpose of payment. The numeric data includes the cheque number, transit number, institution number, designation number, and account number.
In the following section of the article, we will discuss the key inputs that you will need to understand to correctly read a cheque.
Reading Cheques
Reading cheques does not usually require technical knowledge. In fact, most people will have sufficient information for their purposes if they can confirm that the name of the recipient and the balance being paid are correct. With this information and a valid form of government-issued identification, most people will be able to proceed with cashing or depositing cheques into their accounts.
That said, we will take a look at some of the more technical considerations for checks in the following sections of the article. If you have further questions, don’t hesitate to contact us.
Cheque Number
Cheque number refers to the first three digits at the bottom of the cheque. This is the ordered sequence of the cheque from the bank customer’s chequebook.
Transit Number
Transit number refers to the five-digit code that identifies a specific branch of a financial institution in Canada. The transit number is located after the cheque number on the bottom of the cheque.
Institution Number
Institution number refers to the three digits immediately following the transit number.
Routing Number
Together the transit number and the institution number combine to form the routing number. So, if you are ever asked for the routing number of your bank account in Canada, you can respond with the combination of these two numbers, which will include eight digits in total.
Memo Line
Memo line is an optional inclusion that is typically located directly above the cheque number. The issuing party would typically include a memo line to reflect the purpose of payment or reference a specific invoice that the cheque is tied to.
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Frequently Asked Questions
Below are three of the most common questions that we receive from people looking into how to read a cheque. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Do Cheque Numbers Mean?
Cheque numbers mean the first three digits in the numerical code at the bottom of each cheque. These three digits are the cheque number, which represent the order in which cheques are issued by a customer of a bank.
How Long Is a Cheque Valid For?
A cheque is valid as long as a bank is willing to cash or deposit it. However, in most cases, banks will not cash a cheque longer than six months. This is true in Canada, as well as other countries around the world.
How Do You Read the Numbers on a Cheque?
You read the numbers on a cheque by following the sequence of digits and matching them to their specific purpose. More specifically, the first three digits represent the cheque number, the next five digits represent the transit number, the next three digits represent the institution, and the final seven digits are the account number.
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