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. Ask for a new check if the old one is past six months old.
When is a check considered stale-dated?
- Domestic money orders don’t have an expiration date, but terms differ from state to state.
- When a check is stale-dated, the recipient of the check will need to inform the issuer of the check and request that they provide them with a new check for the payment.
- If that’s the case, it’s best to keep the funds available in your account for at least six months.
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Expiration dates and other issues regarding check use are governed by the UCC—that’s a set of laws that regulate commercial transactions in the U.S. Some checks are good for about 6 months, and others may never expire. The policy should more clearly outline what you are going to do if a recipient does not cash a check that you’ve issued.
How Long Are Personal Checks Legally Valid?
If a person has been given a personal or business check, it is important to understand that the check has a limited period during which it is valid. Most personal checks have a maximum time frame in which they can be presented to a bank before they become stale or invalid. The standard period is usually 180 days, i.e., 6 months, from the date on which the check is issued.
- The only condition in this situation is the financial institution has a right over the refusal of the check.
- U.S. Treasury checks expire one year from the date they were issued.
- The standard period is usually 180 days, i.e., 6 months, from the date on which the check is issued.
- So in summary, banks are not obligated to honor outstanding checks older than six months, although they can potentially do so.
- That said, stop payments are one situation when it may actually work in your favor to deposit a stale-dated check—because stop payment orders eventually expire.
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- Stale-dated checks refer to expired checks or checks that banks and credit unions will no longer process.
Personal Checks vs. Company-Printed Checks
When a bank rejects a check, you’ll most likely incur fees. The fees will depend on whether you were the issuer of the check or the recipient. The primary fee is an NSF fee; when a bank returns a check that is unpaid. John just finished a large job and receives a check made to John Smith Landscaping Services LLC. He tries to cash that check at a nearby bank, but the bank teller refuses to complete the transaction unless John can provide proof of valid business registration with the state. Always carry proper government-issued identification such as a driver’s license or passport when you intend to cash a check.
- Consider the type of unclaimed property you could potentially have and investigate the state dormancy period for each.
- That way, you’re not only aware of your financial standing, but also shielding yourself from issuing a check when there aren’t sufficient funds to cover it.
- He tries to cash that check at a nearby bank, but the bank teller refuses to complete the transaction unless John can provide proof of valid business registration with the state.
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- If somebody worries that a check got lost, they may decide to stop payment—an order not to pay a check that has been issued, but not cashed—on that check.
Stale Dated Checks
If the company does not cash the check, you’re going to have to go through the escheatment process, and you’ll end up losing the cash either way. Almost every state requires a business to perform due diligence by contacting the owner of the unclaimed property. When a check is certified, the bank backs that the drawer’s signature is genuine check stale dated and that he or she has enough money in the account to cover the cost of the check. Some checks come printed with text stating that a check becomes void after 90 days. This can be safely disregarded as an attempt to remind people not to hold a check for too long. The six-month rule applies regardless of what is printed on the check.
What happens if you try to cash an expired check?
This step helps avoid problems and reduces risks such as bounced checks. While checks may not have a fixed expiration date, they can become stale after a certain amount of time. You may not be able to cash or deposit a stale-dated check. However, bank routing numbers or account numbers may change if your bank merges with another bank.
However, the institutions and companies that issue them may have rules determining when unused money orders become considered abandoned property. They may also charge fees that eat away at a money order’s value. Traveler’s checks never expire as long as the issuing bank is still in operation.
