When is a Check Considered Stale Dated?

Now, let’s dive deep into understanding a stale-dated check and how what is considered a stale dated check it functions. Though you want to avoid letting a check go out of date, there are some important considerations for a check that has become outdated. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. A lawyer can help you understand your rights and what actions you can take to protect yourself.

Is depositing stale-dated checks illegal?

Checks that remain outstanding for long periods of time cannot be cashed as they become void. Some checks become stale if dated after 60 or 90 days, while others become void after six months. Having a bookkeeper or accountant in the organization can be a great help to the employer. The possibility of clearance of the business amount lies with the bank itself. It’s always best to contact the issuer before trying to cash a stale or outstanding check. Such a call may be awkward, but it’s better than imposing an overdraft fee on the person or business that wrote it.

Risks of Cashing a Stale-Dated Check

A stop payment informs your bank that you do not want the check cashed and essentially voids the check. If you are a business owner who has written a ledger account check that has never been cashed, it doesn’t mean that the money reverts back to you. Instead, it is possible that the money now belongs to the state per escheatment laws. •    Your bank has the option to refuse a stale check, so it’s wise to check with your financial institution first to find out its policy before you try to, say, mobile-deposit the check.

• However, the money order issuer might start charging fees against the money order, eroding its value and eventually making it worthless.
• This will help you stay on top of your bookkeeping and accounting processes.
• Your bank or financial institution considers a cheque to be stale-dated when it becomes too old, which is usually after six months.
• The biggest difference is that when you issue a cashier’s cheque, your bank is going to take funds from the purchaser.
• The six-month rule usually applies to personal and business checks, including payroll ones.

Checks Written to You

• Traveler’s checks might not ever expire, and can always be refunded if lost or stolen.
• If you’re not able to contact the original issuer or they are not willing to reissue the check, ask your bank and the issuing bank if the check can still be deposited.
• It’s important to make sure that you spell the recipient’s name properly on the cheque.
• If they haven’t received the payment, this may nudge them to notify you to reissue the check.
• For example, domestic USPS money orders are good indefinitely, but international money orders can expire.
• With accounting software like QuickBooks Online, you can accept payments anytime, anywhere.

Plus, it will help make sure that if a cheque is stale-dated you will have enough funds to cover it. Even though cheques aren’t as common as they once were, they’re still used and there can be some important things to know. Your bank or financial institution considers a cheque to be stale-dated when it becomes too old, which is usually after six months. A post-dated cheque is a cheque that can’t get deposited before the specified date. If for some reason your bank deposits a post-dated cheque too early, you will need to resolve the situation with them.

Make sure to cash your federal tax refund check no later than a year from the date it was issued. – If you’re the one who wrote the check and it has yet to be cashed, check with the recipient to see if they still plan to cash it. Your bank might let you deposit the check, but the issuing bank can reject it. If this happens, your account may lose funds, and you could be charged a penalty instead.