Red ink is not inherently illegal; however, its use in specific financial contexts, like signing checks, can cause problems. The assertion that red ink is illegal is incorrect. It's more accurate to say that using red ink for certain financial transactions can lead to complications.
The Problem with Red Ink on Checks
The primary reason for avoiding red ink involves check processing. As the provided reference states, using red ink to sign or endorse a check "could trigger trouble by delaying payment of the check." This is because:
- Automated Check Processing: Banks use automated systems to process checks. These systems may not recognize red ink, leading to delays or rejection of the check. The color is often associated with alterations or corrections, triggering suspicion.
- Fraud Prevention: In extreme cases, using red ink might be misinterpreted as an attempt to alter the check, leading to suspicion of fraud. This can result in the check being voided.
- Historical Association: The reference notes that red ink has been considered a "warning color since the Cold War era," further contributing to its problematic association with financial documents.
Therefore, while not explicitly illegal, using red ink on checks is generally discouraged due to the potential for processing delays and misinterpretations. This doesn't extend to other uses of red ink; it's specifically problematic in situations where automated systems need to quickly and accurately read and process information.
