How Long Are Checks Good For Before They Expire?
Discover how long different types of checks remain valid and what to do if a check expires. Essential guidance for managing your payments effectively.
Checks serve as a widely accepted form of payment, facilitating transactions between individuals and businesses. Unlike physical currency, checks are not indefinitely valid and possess specific timeframes within which they can be honored. Understanding these validity periods is important for anyone handling checks, whether as a recipient or an issuer, to ensure financial transactions proceed without issue.
Standard Check Validity Periods
Most personal and business checks are subject to a common banking standard regarding their validity. Under the Uniform Commercial Code (UCC), banks are not obligated to pay a check presented more than six months (180 days) after its date. A check that falls outside this timeframe is considered “stale-dated.”
While banks retain discretion to honor stale-dated checks if certain conditions are met, such as an open account, sufficient funds, and no stop payment order, depositing checks promptly is advisable. Some business checks may even include a shorter validity period, such as 90 days, explicitly printed on the check itself. Prompt deposit helps avoid potential complications.
Special Check Validity Periods
Beyond standard personal and business checks, other types of checks have different validity considerations due to their nature or issuer. Cashier’s checks and certified checks, for instance, typically do not have a printed expiration date. These instruments represent guaranteed funds, meaning the bank has already set aside or confirmed the money for payment.
Despite lacking a stated expiration, these checks can become subject to state unclaimed property laws if they remain uncashed for an extended period. This dormancy period, which can range from three to five years depending on the jurisdiction, requires the issuing entity to turn over the funds to the state. Money orders also generally do not expire, but they too can be subject to these escheatment laws after a similar dormancy period.
Government-issued checks, such as federal tax refunds or Social Security payments, also have specific validity rules. Federal tax refund checks, for example, are typically valid for one year from their issue date. If a federal government check expires, the recipient would need to contact the relevant agency, such as the Internal Revenue Service (IRS), to request a reissuance of the payment.
Dealing with Expired Checks
When a check passes its validity period, the recipient may encounter issues attempting to deposit or cash it. Banks can refuse to honor a stale-dated check. If an expired check is deposited, it may be returned unpaid, which can lead to fees for both the recipient and the issuer.
Should a check expire, the immediate action for the payee is to contact the person or entity who issued the check. Requesting a new check with a current date is the most effective way to resolve the situation. Returned check fees, often ranging from $25 to $40, can be imposed on the issuer if an expired check is presented and subsequently returned.
For the check issuer, funds from an uncashed, expired check generally remain in their bank account. It is important for issuers to regularly reconcile their bank statements and track any outstanding checks that have not cleared. If a check remains uncashed for a prolonged period, it may eventually fall under state unclaimed property laws, requiring transfer to the state until the rightful owner claims it.