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What Are Stale-Dated Checks?

BookkeepingMay 26, 2023

stale dated checks

Uncashed checks to vendors, contractors, employee payroll, and distributions to stockholders are all potential unclaimed property. While a bank does have the right to refuse an old check — and even return it to the original issuer — it also might decide to honor it. Before trying to cash a stale-dated check, it might be a good idea to contact the bank that holds the account the check is drawn against to see what its policy is. Incorrect fees (See chart below or refer to CPLR Article 80) or checks with printed limitations, such as “not valid after 90 days” often pose a problem.

stale dated checks

Invalid or missing Section, Block, and Lot (s) (and if a condo, Unit numbers) This is the most common error. The best source to obtain this information is the current County Tax Bill. Be sure to list all information, because the document will only be indexed as directed by you. Before recording, check the clerk’s index to be sure that there have been no changes since the preparation of the tax bill. The eRoutingNumber™ database uses many different sources and has evolved since 1998, and now utilizes user reporting to keep the data in check.

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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. A check is usually payable at the time it is negotiated or presented to a bank for deposit or cash. However, a person may no longer be able to deposit or cash a check after it has become stale. The first step to implementing a practical company policy for stale-dated checks is to understand state laws.

  • When opening a bank account, typically documentation and proof of identity are needed to get the application and review process started.
  • Even though banks or other financial institutions may allow you to deposit or cash it, they’re not obligated to do so by law.
  • But every now and then, you may need to write a check to a vendor or receive one as a form of payment.
  • Before trying to cash a stale-dated check, it might be a good idea to contact the bank that holds the account the check is drawn against to see what its policy is.

Typically, accounts are frozen if checks have been stolen or there is other possible fraudulent activity, but a person can always ask to have their account frozen. There are a few things a person can do to prevent a stale check from being honored by a bank. The easiest and most effective way is through a check-stop payment order. Use this information to create a policy on owner contact and state remittance for different categories of uncashed checks. NAUPA’s free reporting software can help you craft a sensible plan.

When do money orders expire?

This can lead to overdrawing your account and incurring fees unless you stop the payment. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.

Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. If the stale check is returned for any reason, then a person’s bank may charge a fee for returning the check to the person. They may then reverse the deposit if the funds were not placed on hold.

How Long Can a Check Be Uncashed?

These checks are returned to the bank and the issuer is charged a fee as a penalty. In some situations, the recipient can also be charged a fee in addition to having to refund the deposit. With a stop payment notice, the bank employee who is responsible stale dated checks for handling your accounting transactions ensures that the check becomes void. It prevents the other business owner who is on the client-side of the table from cashing old and new checks, thereby maintaining transparency in the business.

Let’s look at what to know about stale-dated checks and what you can do if you’re holding onto one. Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you.

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