How Long Should You Give Someone to Cash a Check?
Master the essential timeframes for check validity. Understand the nuances of cashing, managing older checks, and navigating bank policies for secure transactions.
Understanding a check’s validity period is important for managing personal finances, whether you are writing or receiving one. Knowing these timeframes is crucial for both the check’s creator, known as the drawer, and the recipient, or payee, to prevent unexpected financial complications. Timely cashing helps avoid issues such as unexpected debits or the inability to access funds when needed. Delays in depositing a check can lead to various inconveniences and potential financial pitfalls for all parties involved.
Standard Validity Periods for Checks
Most personal and business checks are generally considered valid for six months from the date they are written. This guideline is recognized in banking practices and supported by the Uniform Commercial Code (UCC). While the UCC states that banks are not obligated to honor a check presented more than six months after its date, it does not strictly void the check. A bank has the discretion to pay a check after this period, especially if the account has sufficient funds and no stop payment order exists.
Certain types of checks have different validity periods. Government checks, such as those issued by the U.S. Treasury, typically remain valid for one year from their issue date. State and local government checks may also have varying expiration dates, often ranging from six months to a year. Some checks, particularly those from businesses, might have a “void after 90 days” phrase printed on them, but banks usually still honor these for the standard six-month period.
Dealing with Stale-Dated Checks
A check becomes “stale-dated” when it is presented for payment after its typical six-month validity period. While banks are not required to honor a stale-dated check, they retain the option to do so if funds are available in the account and no stop payment has been issued. This discretionary power means a stale check might still be cashed, potentially leading to unexpected debits or insufficient funds if the drawer has since spent the money.
If a check you wrote has not been cashed after six months, it is advisable to contact the payee to confirm if they still intend to deposit it. Offering to issue a new check can resolve the situation and ensure the payee receives their funds. If there is concern about the original check being cashed, or if the underlying transaction is no longer valid, placing a stop payment order on the stale-dated check is an option to prevent it from clearing.
Stopping Payment on Checks
Placing a stop payment order is a formal request to your bank to prevent a specific check from being cashed or deposited. This action is commonly taken if a check is lost, stolen, or if a dispute arises over the goods or services. It is also used if a check has become stale-dated and the drawer wishes to prevent its payment. The process generally requires providing your bank with details like the check number, the exact amount, and the payee’s name.
Banks typically charge a fee for a stop payment order, which can range from $15 to $35 or more, depending on the financial institution and how the request is made. This fee applies whether the request is made online, by phone, or in person. A stop payment order usually remains in effect for six months but can be renewed if necessary. Wrongly stopping payment on a check could have legal implications, particularly if the funds were legitimately owed.
Understanding Different Check Types
Post-dated checks are written with a future date and are generally not valid for cashing until that specified future date arrives. The standard validity period, such as the six-month guideline, typically begins from the post-date, not the earlier physical writing date of the check.
Cashier’s checks and certified checks offer a higher level of security because the funds are guaranteed by the issuing bank. For a cashier’s check, the bank draws the money from its own account after collecting it from the purchaser, guaranteeing the payment. Certified checks involve the bank verifying sufficient funds in the drawer’s account and then setting those funds aside, marking the check as “certified.” While these types of checks are not subject to the same stale-dating rules, practical considerations still exist for timely deposit. An old cashier’s or certified check might still present challenges for the payee during deposit due to internal bank policies or reconciliation procedures.