The difference between a check and a check stub can sometimes be confusing, especially if you are just starting out in the world of banking or applied for the first time. However, there are cases where a payment is made by check and no stub is attached, as is often the case for contractors or self-employed. Vice-versa, which are paid by direct deposit, can only receive the check stub as proof of payment.
What is a check?
According to Princeton. edu website, a check is “directing a written order from a bank to pay money.” When someone receives a check as payment, provides banking authorize them full amount of the check, receive comes from the account of the check provider. If there are no available funds (not enough), then there is no money is distributed. As a legally binding document, checks can be used in court as a contract between the writer and the recipient.
What information contains a check?
There are three types of information are located on the control – recipient information, provider information and bank details. Recipients will have their full legal name, the amount they are paid on the check in both finding the numerical and standard numeric form. Traditional contact the writer is also on the check, to include their name (or company name), address and telephone number. Bank information including the bank routing number and account number of the writer. Furthermore, some banks may have a logo clearly visible.
What are the most common uses of the checks?
The controls are most often used in exchange for a good or service. Because checks are made in exchange for the cash value of the bank, is not proof of the transaction retained by the person (s) cashing the check. Therefore stubs traditionally kept by the check recipient as a receipt.
What information does include a check stub?
Check stubs come in a variety of forms, such as payment check stubs that are used in the payroll or business stubs given to contractors. The information on the check stub most common information includes name and account identifying information (employee number, last four digits of the social security number, etc) from the receiver, the business data from the check writer (name, address, etc), the check amount and an overview of how the final value of the check was calculated (deductions, fees, etc). On some check stubs (in particular, reports of payroll), a history of the payments over a period of time may be present.
W hat are the most common uses of checks stubs?
usually check stubs are used as proof of profits by the recipient. As a legal record of payment, check these documents, the amount received and is mostly used to report a proof of income.