Stale-dated checks: What to do with them?

stale dated checks

If you hold onto a check for a while you run the risk of the account number or routing number changing or the check writer may have forgotten about the check and spent the money on something else. But there are several exceptions, and there’s no guarantee that banks will reject checks after that time. The Uniform Commercial Code , which most states use as a model for the law, says that banks do not need to honor old checks. But banks can still process those payments if they believe the check is good. A. Policy – This instruction establishes that checks issued by the College for payment of goods and services, refunds, payrolls and other considerations are to be void after one year of the date of issue. When a check has not been cashed after 30 to 45 days, contact the payee to determine why.

How long is an uncashed check good for?

With the personal check, if the check hasn't been cashed after 180 days or six months, it will be considered invalid.

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Treasury checks, cashier’s checks, money orders, and traveler’s checks are different. Read on if you need information about a specific type of check. If you do not pick up or otherwise receive a payroll check during the time period established by your state, your payroll check will be considered abandoned and will go into your state’s unclaimed property unit. Your state will act as a custodian for your property and will return your money upon showing proof that you are the owner or that you have the right to claim the property. If you’ve been given a personal or business check, it’s important to understand the check validity period. Most personal checks have a maximum time-frame that they can be presented to a bank before they become stale, which is usually 180 days from the date on the check.

How do you handle a stale-dated check?

If you've issued a check that has yet to be cashed, you can contact the recipient to see if they still have the check and intend to cash it. If they still want to cash the check, offer to write them a new one — just make sure you get the old check back first, or put a stop payment order on it.

The IRS needs to reissue the check if it has been sitting around for longer than a year. Many banks place limits on how long they’ll accept checks for after being signed, though that amount of time varies depending on several factors. The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

What should I do with a stale-dated check?

Even if the payee never cashes the stale check, this doesn’t mean that your business receives extra cash. Personal checks can be replaced by the issuer, so it is best to reach out directly to the person who wrote the check. That way, they know to have enough funds in the account to avoid a returned check or becoming overdrawn. There is also a chance the check writer might have issued a stop payment thinking the check had become lost or stolen. While the UCC places banks under no obligation to cash stale checks, many banks and credit unions may go ahead and cash the check even beyond ​six months​. The disclaimer here is that banks are not under any obligation to honor a stale-dated check. Further, banks are not required to cash a check for non-customers.

For example, if you’ll need to report the property on June 1, mail the letter before the beginning of the year. Almost every state requires a business to perform due diligence by contacting the owner of the unclaimed property. Certified checks guarantee that there are funds in the account, so those cashing the check don’t have to worry about it bouncing.

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Checks are stale dated on a monthly basis, the most recent set of stale dated checks will be reflected in this listing by the 15th of the month. Eventually, the person or business that the check is from might switch banks.

  • List the voided check as a negative check on the treasurer report.
  • Employee payroll, and distributions to stockholders are all potential unclaimed property.
  • Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.
  • Periodically update your records for lost or missing participants.
  • At this point, the check is not cashable, and you must file a claim directly with the state to recover it.
  • After that time, you’re still entitled to money the government owes you, but you’ll need to contact the issuer of the check and request a new check.
  • If you have any questions about City & County of San Francisco uncashed, stale-dated checks, please submit a ticket through our public records portal using NextRequest.

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. A bank will, in good faith, do all it can to stop payment on a check, but a bank will not guarantee that the check will not be processed. If a bank is unable to stop payment on a check, your funds may be debited and you may be responsible for any fees including the fee your bank charges for stop payments. Specifically, a customer or any person authorized to draw on the account can request their bank to flag the account to stop the payment of the outstanding check.

Putting a company policy in place for stale-dated checks

A stale-dated cheque means that the item is old, and not necessarily invalid. Financial institutions may still honour these items, but there is no obligation to do so.

stale dated checks

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