Can You Redeposit a Returned Check? What to Know

When a deposited check is returned unpaid, it can be confusing. This “bounced check” means the financial institution could not complete the transaction. Understanding why a check is returned and what steps to take is important for managing finances. This article explores common causes for returned checks, when redepositing is permissible, the steps for redepositing, and actions to consider before attempting a redeposit.

Understanding Why Checks Are Returned

Checks can be returned for several reasons, often indicated by specific codes from the bank. One frequent cause is “Non-Sufficient Funds” (NSF), meaning the check writer’s account did not hold enough money to cover the check’s amount at the time of presentation. This can happen due to simple timing issues, such as a pending deposit not clearing in time, or an oversight in tracking the account balance.

Another reason for a returned check is a “Stop Payment Order,” where the check writer specifically instructed their bank not to honor the check. An “Account Closed” status will also cause a check to be returned, indicating the account from which the check was drawn is no longer active. Checks can also be returned if they are “Stale-Dated,” typically meaning they were presented for payment more than six months after their issue date.

A “Post-Dated Check” is written with a future date and may be returned if presented before that date. Other reasons include a missing or unauthorized signature, errors in the check’s details like incorrect account information, or if the check appears to be forged or altered.

When Redepositing Is Permissible

Redepositing a returned check is often possible, but its success depends on the original reason for its return. If the check was returned due to insufficient funds (NSF), redepositing it can be successful if the check writer has since added money to their account. This applies when the issue was a temporary lack of funds, and the check writer has rectified the situation.

However, if the check was returned for reasons such as a closed account, a permanent stop payment order, or forgery, redepositing the check is futile. Understanding the specific return code or reason from your bank is important for determining the viability of a redeposit.

How To Redeposit A Check

Once you have determined that redepositing a check is a viable option, the process is similar to making an initial deposit. You can typically redeposit the check through several convenient methods. Mobile deposit, available through most banking apps, allows you to take pictures of the front and back of the check and submit them electronically. Ensure the check is properly endorsed.

Alternatively, you can use an Automated Teller Machine (ATM) that accepts deposits. This usually involves inserting the check into a designated slot and following the on-screen prompts. For a more direct approach, visiting a bank branch and handing the check to a teller is always an option. Regardless of the method, it is recommended to keep the original returned check until you confirm the funds have successfully posted to your account.

Key Actions Before Redepositing

Before attempting to redeposit a check, taking certain preparatory steps can increase your chances of success and help avoid further complications. The most important action is to communicate with the person or entity who issued the check. Confirm that the issue that caused the initial return, such as insufficient funds, has been resolved and that funds are now available in their account.

It is also prudent to check the date on the check to ensure it has not become stale-dated since the initial deposit attempt. Be aware that your bank may charge fees for returned items; these fees, also known as Non-Sufficient Funds (NSF) fees or returned item fees, can range from approximately $20 to $50 per occurrence. Examining the physical check for any damage, tears, or alterations is also advisable, as banks may reject checks in poor condition. If redepositing seems unlikely to succeed, consider requesting an alternative form of payment from the issuer, such as a new check, a wire transfer, or an electronic payment.