What Is a Business Check?

Companies large and small have been using paper business checks for decades. Even in today’s digital environment, where money is paid and deposited online, many businesses still prefer the simplicity and security of a physical document.

In this article, we’ll look more deeply into paper business checks, how and why they’re used, and how to work with them. 

What Is a Business Check?

A business check is a printed or handwritten payment vehicle used to issue money from a business’s checking account. 

It contains important information regarding the transaction, including the business name, logo (if any), address, account number, individual check number, and signature of an employee authorized to make payments on behalf of the business.

Businesses use checks to pay for goods, services, and employee wages. They’re especially helpful with large transactions, in which businesses can control cash flow by staggering payments. Physical business checks leave paper trails that allow for tracking and accurate financial records.

The vast majority of physical business checks are printed by software connected to laser printers. This method saves a lot of time and prevents errors that may be incurred in handwritten checks. Businesses use integrated financial software with check printers to make accurate records and manage finances automatically.

Business Check Example

Paper checks come in all shapes and sizes, from wallet-size business checks to top-format blank checks. 

Business checks can be issued by a bank. They can also be printed by a business, making payments to employees or vendors more convenient. Printed business checks are often produced on 8½” by 11” paper. This paper has different qualities from standard printer paper, but it’s still designed to fit in regular inkjet or laser printers.

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A typical business check contains the following:

• The business name, address, phone number, and logo near the top-left corner
• The issuing bank name is near the middle of the right side of the check
• A unique check number in the top-right corner
• Issuing date and amount near the right-middle of the check
• The party being paid, identified by the words “Pay To The Order Of”
• A line for an authorized signature in the bottom-right corner
• The bank routing number and account number running along the bottom of the check (called the MICR line)

Many business checks are watermarked for security reasons. Sometimes, this watermark is visible; in other cases, it may only be visible under a certain light or at a sharp angle.

Different Types of Business Checks

Business checks come in different styles. Some are specialized to make certain kinds of payments. Others are designed to maximize bulk check-printing. Categories of business checks include the following.

Payroll Checks

These checks are used to remit payments for employee wages. They often come with an additional, printed summary of tax and benefits deductions.

Vendor Checks

Vendor checks are business-to-business payments for goods and services used by the paying company. Many are annotated with the vendor’s invoice number, if there is one.

Cashier’s Checks

Cashier’s checks are issued by banks from their funds, essentially guaranteeing that the payment will go through and not be delayed for insufficient funds. They are usually reserved for large transactions.

Business Check Formats

Physical business checks come in different sizes and formats.

Wallet-Sized

Checks that can be folded into wallets are the most widely known kind of business checks. The size allows wallet-sized checks to be printed efficiently in groups of three.

Top Format

Top format checks are letter-sized checks that contain all the check information on the top third of the page for printing.

3-Per-Page Manual Payroll

3-per-page manual payroll checks are for handwritten checks to employees. They often come with detachable “information” pages that are filled out and forwarded to business accountants.

Business Check vs. Personal Check

The major way business and personal differ is the party who’s writing the check, but there are a few other differences, too. 

Business checks tend to have more information on them, like tax ID numbers. Since they have to be used for record-keeping, business checks often come with pay stubs or digital tracking numbers. They’re also supported with security features.

Personal checks have minimal information compared to business checks. They include the payer’s name, address, check number, payee, amount, “memo” space for brief explanations, signature line, and routing number.

Business checks to other businesses should never be deposited in a personal checking account. Doing so could result in serious legal repercussions like tax law violations, fraud, account closure, and loss of business credibility.

How Do You Deposit a Business Check?

To deposit a business check, the recipient endorses it on the back with their signature, marks it “For Deposit Only,” and prepares a deposit slip.

The recipient then deposits the physical check in person at their bank or one of the bank’s ATMs. Services like PayPal also offer mobile deposits of physical checks, using uploaded photos of the check before and after being voided to verify the funds.

Some operations that provide financial services are not well-suited for business check deposits, if they allow them at all. These include peer-to-peer services that aren’t PayPal (Venmo, Zelle, etc.), retailers, check-cashing establishments, and some out-of-network ATMs.

Printable Business Checks vs. Electronic Checks

Digital payments have largely taken over the world, as e-checks offer instant record-keeping and faster transactions. They also don’t need printing, mailing, or any physical materials.

There are many reasons why a business may still rely on physical business checks. They don’t come with additional card fees and can still be used in just about any brick-and-mortar business. Some people may just feel more comfortable and familiar with paper checks and prefer to manage their expenses themselves.

The Cost of Business Checks

Physical business checks may come with additional fees and surcharges beyond the amount being paid. Some banks charge transaction fees on physical checks, especially when handling large volumes of checks. Overdraft fees may apply if there are insufficient funds in the account when the payee tries to cash the check.

There are also some side fees for things like accounting software, printing services, and postage. Writing out physical checks can add time and labor costs, too. 

Checks for Your Business Needs

We hope this deep dive answers the question “What is a business check?” and shows why they’re still important parts of the business world.

Check Depot carries several lines of physical business checks that align with almost every financial software program and laser printer in the world. Have a look at some of the checks in our catalog and contact us for top-quality service.