stale dated checks

Bankrate follows a strict
editorial policy, so you can trust that our content is honest and accurate. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. If you try to cash a stale check or someone tries to deposit a stale-dated check that you’ve written, here are a few things to look out for. Tyler Keefer’s troubles started when he sold his Kawasaki Ninja motorcycle.

stale dated checks

Be considerate — call or text the payer to let them know your intent. Make sure to also double-check that they haven’t switched financial institutions or opened a new account. Getting her account balance also became an ordeal, all while her Oct. 1 rent payment deadline was looming. The check had been flagged as potentially fraudulent by the check-issuing bank, PNC, because it believed it contained handwriting from two different people, he said.

How do you handle a stale-dated check?

They can easily be misplaced or accidentally discarded with other waste. Losing a check or delaying its deposit can result in it becoming stale-dated. Consider the type of unclaimed property you could potentially have and investigate the state dormancy period for each.

The only condition in this situation is the financial institution has a right over the refusal of the check. Unless you have a government-issued check or certified check, it’s wise to deposit checks within six months. Doing so prevents confusion at the bank and lets the check writer know that you’re ready to collect your money. A stale check is one presented to a bank after a specified time, typically six months.

Can You Cash a Two-Year-Old Check?

A stop payment informs your bank that you do not want the check cashed. A stop order prevents the other business owner from cashing both the original and new checks. Even if the payee never cashes the stale check, this doesn’t mean that your business receives extra cash.

While a stale-dated check is not necessarily invalid, banks may deem it an “irregular” bill of exchange and refuse to honor it. At this point, the only way to process the payment is if the drawer — otherwise known as the check writer or issuer — changes the date on a replacement check or issues a new check. Personal, business, and payroll checks are good for 6 months (180 days).

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Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Use this data to develop a policy for owner contact and state remittance for various types of uncashed checks. NAUPA’s free reporting tools can assist you in developing a sound strategy.

Do Checks Expire? How Long Do You Have To Cash a Check – GOBankingRates

Do Checks Expire? How Long Do You Have To Cash a Check.

Posted: Mon, 07 Aug 2023 07:00:00 GMT [source]

While a stale-dated check is not inherently invalid, banks may refuse to honor it as an “irregular” bill of exchange. At this stage, the drawer — also known as the check writer or issuer — must modify the date on a stale dated checks replacement check or issue a new check-in order for the payment to be processed. It’s also vital that all employees, particularly accounting staff, understand that unclaimed property does not belong to the company.

If a person wishes to cash a stale check at the issuing bank, then they would need to get approval from that bank before presenting the stale check. Santander Bank, for example, charges $15 a check, while at Bank of America, the fee is $12. Plus, the person who wrote the bounced check might be charged a nonsufficient funds fee of up to $35. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens.

stale dated checks

Due to the popularity and ease of electronic payment and cash transfer apps, the use of paper checks is slowly declining. Despite this decline, paper checks are not yet obsolete, so there might be an instance in which you have to write, cash or deposit one. Instead, you will need to ask that the issuer of the check provides you with a new check for the purpose of the payment. With this in mind, it’s best to process a check as soon as possible to avoid complications or delays with processing, which also ensures avoiding stale-dated checks.

If a bank does elect to cash or deposit a check for you, this does not mean the balance of the check will be immediately available. Each bank has its own check hold policies, check endorsement requirements, and clearance period. First, determine if it is a live check or not (such as an automatic withdrawal or credit card charge). Make sure that a replacement check was not cut or an order cancelled.

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