This process highlights checks that haven’t been presented to the bank for payment or uncleared checks. If a check is notated as stale dated it may or may not have been cashed or re-issued. Contact Procurement Services at  to verify whether the check cleared the bank, was cancelled, was reissued or is still unclaimed.

Money orders are a substitute for checks and generally used for lower value transactions. If you’re trying to figure out if a cashier’s check or a money order would better suit your needs, read our article Cashier’s Check vs Money Order. After 1-3 years, Western Union will charge a fee against the value of the money order.

Stale date Procedures

So in summary, banks are not obligated to honor outstanding checks older than six months, although they can potentially do so. Banks are required to cash certified checks and cashier’s checks, even if they are greater than six https://www.bookstime.com/articles/stale-dated-checks months old. A stale check is one presented to a bank after a specified time, typically six months. While a stale-dated check is not necessarily invalid, banks may deem it an “irregular” bill of exchange and refuse to honor it.

Let the owner know how he or she can claim his check and provide a deadline for doing so. 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. Another solution is to contact the person or business that wrote you the check and ask them if they would issue another check to replace the stale one. Freezing an account will prevent all outstanding checks from clearing.

Why Do Stale Dated Checks Occur?

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. Consider the type of unclaimed property you could potentially have and investigate the state dormancy period for each. The policy should more clearly outline what you are going to do if a recipient does not cash a check that you’ve issued. When a check is certified, the bank backs that the drawer’s signature is genuine and that he or she has enough money in the account to cover the cost of the check. If your bank will not accept a check made out to you or your business because it is now considered “stale”, then there are a few things you can do to attempt to recover the amount you were paid.

List the voided check as a negative check on the treasurer report. While no motions are needed to void a check, motions are needed to reissue, especially if the check was issued in a previous term. Some programs, such as MyPTEZ, record the “Void” with the current date.

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Another thing you can do to prevent a stale check from clearing is to freeze your account. Typically accounts are frozen if checks have been stolen or there is other possible fraudulent activity, but you can request to have your account frozen. 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.

U.S.P.S. money orders do not expire and retain their value indefinitely. As long as there are post offices, you can cash a U.S.P.S. money order. If you’ve been given a check, it’s best to cash or deposit it as soon as feasible. If you hold onto a check for a while you run the risk of https://www.bookstime.com/ the account number or routing number changing or the check writer may have forgotten about the check and spent the money on something else. Someone who wrote a personal check is probably not prepared for the hit their checking account balance will take if you cash it months later.

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The UCC guidelines that allow banks to deny checks after six months do not apply to certified checks. But a certified check that sits for too long may be subject to state abandoned property laws. If these options don’t work, you can check with the state in which the issuing company is located.

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What to do if you have a dated check

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. However, it’s up to the bank’s discretion if it will allow a stale check to be processed. It’s best to confirm with your bank before you attempt to deposit a stale check.

• If you need assistance navigating this topic, reach out to your BKD Trusted Advisor™, fill out the Contact Us form below, or check out our Outsourced Accounting Services page.
• Personal, business, and payroll checks are good for 6 months (180 days).
• Cashier’s checks are backed by the issuing bank and, theoretically, should be valid for as long as the bank is in operation, but some banks will put expiration dates on the checks themselves.
• The length of time for a cashier’s check to go stale can also vary — from 60 days to never — depending on multiple factors.
• So let’s say that as a business owner, you wrote a check to a vendor.
• Cashier’s checks are a type of “official check” and the rules surrounding them can be complicated.

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 (6 months) from the date on the check. The Uniform Commercial Code (UCC) is a collection of laws and regulations meant to harmonize the laws of sales and regulations across the U.S. The UCC tells banks that they are under no obligation to accept personal or business checks that are older than 180 days (6 months). So, generally speaking, personal and business checks are good for 6 months; however, some banks will accept older checks. The length of time for a cashier’s check to go stale can also vary — from 60 days to never — depending on multiple factors. In some cases, the issuing bank may specify an expiration date on the check itself.

Lost or Stale-Dated Check Procedures

The exact due diligence requirements vary by state, but the National Association of Unclaimed Property recommends a formal letter to the check recipient sent by first-class mail. In some cases, if your bank was negligent – e.g., your bank failed to perform due diligence in verifying the check, then you could request to be compensated for any losses or damages. This may be a surprise to hear, but there are many different—yet appropriate—accounting methods for small and midsize businesses. There are a few ways you can determine if a check is stale-dated, whether you received the check or have concerns about a check you’ve written. Compensation may factor into how and where products appear on our platform (and in what order).

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.

What should I do with a stale-dated check?

Generally speaking, money orders don’t expire, but they could become so old that they fall under abandoned property regulations or the value is eaten with fees. If a live check was issued, write a letter to the vendor stating that the check (indicate check number, date and amount) has not cleared the bank. If the vendor responds, you can move forward with a replacement check and voiding the outstanding check.