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The Difference Between A Check and A Check Stub

The difference between a check and a check stub can sometimes become confusing, especially if you’re just starting out in the world of banking or being employed for the first time. Most often, employers that write or print checks will submit both a check and a check stub to the employee to explain how the final pay was calculated. However, there are instances where a payment is made by check and no stub is attached, which is often the case for contractors or independent workers. Vice-versa, those that are paid through direct deposits may only receive the check stub as proof of payment.

What is a check?

According to the Princeton.edu website, a check is “a written order directing a bank to pay money”. When a person receives a check as payment, it provides bank authorization for them to receive the check’s full amount, which is taken from the account of the check provider. If funds are not available (insufficient), then no funds are dispersed. As a legally binding document, checks can be used in court as a contract between the writer and its recipient.

What information does a check contain?

Three types of information are located on checks – recipient information, provider information, and bank information. Recipients will find their full legal name, the amount they are being paid on the check in both the numeric and standard numeral form. Traditionally contact information of the writer is also on the check, to include their name (or company name), address, and contact phone number. Bank information which includes the bank’s routing number and the account number of the writer. In addition, some banks may have a logo prominently displayed.

 

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