There are two settings that determine whether the address is pulled by the merge field:
To add or review a payee's mailing address:
Contacts can have only one address of each address type on their profile. If the contact already has an address of type Mailing, the address type of the existing record must be changed before a different address of type Mailing can be added.
There are five address merge fields available for check layout to allow users flexibility in the way the address displays on the check.
Each merge field includes one or more lines of the address. See image below as a reference for the text included in address lines 1, 2, and 3.
Option 1: {PayeeFullAddressFormatted}
This merge field includes all text from all three lines of the payee's mailing address, and displays it in a conventional format.
Note: Because this merge field dynamically expands to include two or three rows of text as needed, make sure to size the merge field correctly when adding it to a check layout. A field height of at least 75 is recommended to accommodate addresses with an apt/suite or floor number.
Option 2: {payeeStreetAddressWithAptFloor} + {payeeCityStateZip}
The {payeeStreetAddressWithAptFloor} merge field includes all fields from the first two lines of the payee's street address, including any apartment or floor details. This merge field displays the text as one line to save space.
The {payeeCityStateZip} merge field includes the city, state, and zip code of the payee's mailing address
Option 3: {payeeStreetAddress} + {payeeAptNumFloorNum} + {payeeCityStateZip}
In this setup, the Payee Address is broken into three separate merge fields on check templates:
The merge fields that include the second line of the address display only the text typed into the "apt/suite number" and "floor number" fields for the payee's address. To display "Apt 3" or "Suite 15," make sure to type the full designation and not only the number.
This affects the fields {payeeAptNumFloorNum}, {payeeStreetAddressWithAptFloor}, and {PayeeFullAddressFormatted}
For detailed instructions on setting up check layout, please see the articles How Do I Design Checks and Modify Check Alignment? and Check Merge Field Reference