Accounting Concepts and Practices

Can You Redeposit a Refer to Maker Check?

Is your check marked 'Refer to Maker'? Learn what this means for you, if redepositing is wise, and how to secure your funds.

When a check you’ve deposited is returned with the notation “refer to maker,” it signals an issue with the payment instrument. This common banking term indicates that the financial institution handling the check could not process it for various reasons, requiring you, the recipient, to address the problem directly with the person or entity who wrote the check. Understanding this designation is a practical step in navigating financial transactions.

Understanding “Refer to Maker”

The phrase “refer to maker” on a returned check is a general instruction from the bank, indicating that the check cannot be honored as presented. It directs the person who deposited the check to contact the check’s issuer to determine the underlying problem.

Common reasons a check might be returned with a “refer to maker” designation include insufficient funds in the issuer’s account. Other causes can involve the account being closed or frozen, or a stop payment order having been placed on the check by the issuer. Discrepancies such as a missing signature, an irregular signature, or errors in the check’s details like mismatched amounts can also lead to this return code.

Redepositing a “Refer to Maker” Check

Attempting to redeposit a check marked “refer to maker” is generally not recommended. While a check returned due to insufficient funds might technically be redeposited, a “refer to maker” stamp frequently implies that a new payment instrument is required. If the original reason for the return was an account closure, a stop payment order, or a stale date, redepositing the check will not resolve the issue.

Redepositing a check that has already been returned can lead to additional fees for both the depositor and the check’s issuer. Banks typically charge a returned item fee, also known as a non-sufficient funds (NSF) fee. Repeated attempts to deposit a problematic check increase the likelihood of incurring multiple fees and can further delay the receipt of funds. Many financial institutions have policies against continuously re-presenting checks with certain return codes, making a new payment method a more efficient solution.

Steps After a “Refer to Maker” Check

Upon receiving a “refer to maker” check, the most effective course of action is to directly contact the person or entity who issued the check. This communication allows you to understand the exact reason for the return and discuss how they intend to rectify the payment. It is important to address any associated bank fees that you incurred due to the returned check, as these are typically the responsibility of the check writer. Documenting all communications regarding the returned check and the agreed-upon resolution is important.

To secure the funds owed, arranging an alternative payment method is advisable rather than attempting to redeposit the original check. Options such as a wire transfer, a cashier’s check, or a direct digital payment can provide more immediate and guaranteed funds. Before accepting any new check, particularly if the initial issue was related to funds, verify that sufficient funds are available in the issuer’s account. Requesting a cashier’s check, which represents guaranteed funds from the bank, can offer greater assurance of payment.

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