Account Payee Cheque: How to Cross a Cheque Correctly

What an account payee cheque actually is

An account payee cheque is a cheque marked "A/c Payee" between two parallel lines drawn diagonally across the top-left corner. The marking restricts the cheque so it can only be credited to the bank account of the named payee. It cannot be cashed at the counter, cannot be deposited into a third party's account, and cannot be endorsed and passed on. The cheque becomes a payment instrument with a single, named destination, and any bank that processes it has been told, in the clearest possible language the system supports, that this is where the money goes.

You make a cheque account payee by doing two things. First, you draw two short parallel lines across the top-left corner. Second, between those lines, you write "A/c Payee" or "Account Payee Only". The crossing without the words is something different. Both elements together make it an account payee cheque.

For any cheque a business issues to a supplier, an employee, a landlord, or anyone else of meaningful value, account payee is the correct default. The few minutes a year it costs you to draw two lines on every cheque buy you significant fraud protection that simply is not available any other way.

Why this matters: the alternative is much worse

To understand why account payee is the default, you have to understand what a cheque without the marking actually allows. A regular cheque, with "or bearer" left in place, can be cashed at the bank counter by whoever physically holds it. Drop one in the street, lose it in the post, leave one in a desk drawer that a temporary contractor sees: a bearer cheque is, in effect, cash with a delay. Even a crossed cheque (the two lines, but no "A/c Payee" words between them) can still be deposited into anyone's account. A determined fraudster who intercepts a crossed cheque can simply deposit it into an account with a similar enough name to pass casual inspection.

The "A/c Payee" marking is the only crossing that closes off both routes. Once the words are between the lines, the bank's processing system refuses to credit any account that is not an exact match to the name written on the "Pay" line.

The three crossing types, side by side

Type	Looks like	What it allows	When to use
Bearer / open	"or bearer" left intact, no lines	Anyone holding the cheque can encash it or deposit it	Almost never for business.
General crossing	Two parallel lines, top-left, nothing between	Cannot be encashed at the counter; can be deposited into any account	One step safer than bearer but still risky if lost.
Account payee	Two parallel lines with "A/c Payee" between them	Can only be credited to the named payee's bank account. Cannot be endorsed.	The default for any cheque of meaningful value.

How to physically mark a cheque, step by step

1. Find the top-left corner of the cheque, the empty area to the left of the date.
2. Draw two short parallel lines diagonally, roughly two centimetres long.
3. Between the two lines, write "A/c Payee" or "Account Payee Only" clearly. Both phrases are recognised.
4. On the body of the cheque, strike out the words "or bearer" that follow the payee line. A single horizontal line through them is enough.
5. Fill in the rest of the cheque (date, payee name, amount in figures, amount in words, signature) as you normally would.

If you are printing the cheque through software like ChequePro, the crossing and the strike-through on "or bearer" can be applied automatically to every cheque, removing this step from the manual workflow entirely.

Common mistakes that defeat the crossing

• Crossing without the "A/c Payee" words. Two parallel lines with nothing between them make a crossed cheque, not an account payee cheque. The cheque can still be deposited into anyone's account.
• Writing the words in the wrong place. "A/c Payee" written across the body of the cheque is not a valid crossing. The lines plus the words must sit together in the top-left corner.
• Crossing but leaving "or bearer" intact. The crossing usually overrides this, but strike out "or bearer" anyway to remove all ambiguity.
• Lines too faint to scan. All current cheques go through image-based clearing systems. The crossing has to survive imaging. A pencil mark or very pale ink line may not.

Account payee cheque vs cancelled cheque: not the same thing

These two are often confused because both involve marks on a cheque, but they do opposite jobs.

• An account payee cheque is a real payment instruction, restricted so it can only be credited to one named account.
• A cancelled cheque is an unused cheque leaf marked "CANCELLED" across the face. It has no amount, no date, no signature. It exists only to share your bank account details for verification (KYC, EMI mandates, salary setup).

You sign an account payee cheque. You never sign a cancelled cheque.

Frequently asked questions

What's the difference between a crossed cheque and an account payee cheque?

A crossed cheque has two parallel lines in the top-left corner but no words between them, and can be deposited into any account. An account payee cheque adds the words "A/c Payee" between the lines, restricting it so it can only be credited to the named payee's account.

Can an account payee cheque be deposited into someone else's account?

No. The bank will only credit it to an account in the exact name written after "Pay". A deposit attempt into another account should be refused.

Can an account payee cheque be encashed at the counter?

No. Any crossed cheque, including account payee, can only be deposited, never cashed at the counter.

Can I cross a cheque that I received without a crossing?

Yes. The holder of a cheque can add a crossing or upgrade an existing one. You can add "A/c Payee" markings to a cheque that arrived without them.

Are all business cheques account payee by default?

No, you have to mark them. The convention is to treat account payee as the default for any cheque of meaningful value, but the marking is not automatic; either the drawer applies it, or cheque printing software applies it automatically on every print.

This article is general information, not legal advice. Consult a qualified professional for your specific situation.