What Does Refer to Maker Mean on a Returned Check?

When a check you’ve deposited is returned with the phrase “Refer to Maker,” it signifies that the issuing bank could not process the payment. This message directs the check recipient, known as the payee, back to the person or entity who wrote the check, often called the “maker,” to resolve the underlying issue.

Understanding “Refer to Maker”

The phrase “Refer to Maker” is a general message from a bank indicating its inability to honor a check presented for payment. It does not specify the exact reason for the refusal, but rather implies that the bank is unwilling or unable to process the funds from the check writer’s account. This message acts as an instruction for the check recipient to directly contact the person who wrote the check to understand the problem and seek an alternative form of payment.

This notification means that the funds are not available from the bank for that specific check, effectively failing the payment transaction. The bank, in essence, is stepping out of the middle and requiring direct communication between the payee and the maker to rectify the situation. It underscores that the responsibility for payment now falls back on the check writer to make good on their obligation.

Common Reasons for a Returned Check

Several common issues can lead to a check being returned with a “Refer to Maker” message from the bank. These include:
Insufficient Funds (NSF): The check writer’s account lacked enough money to cover the check amount when it was presented for payment.
Closed Account: The bank account from which the check was drawn is no longer active.
Stop Payment Order: The check writer instructed their bank to prevent payment on a specific check.
Signature Discrepancy: The signature on the check does not match the one on file for the account holder.
Post-Dated Check: The check is dated for a future date and presented too early for payment.
Stale-Dated Check: The check is presented more than six months after its issue date, and banks are not obligated to honor such old checks.
Alteration: There is evidence of changes to the payee or amount, raising concerns about fraud.

Actions for the Check Recipient

When a check is returned with “Refer to Maker,” the recipient should promptly contact the person who wrote the check to understand the reason for the return and arrange for alternative payment. It is important to inquire if their bank charged a fee for the returned item, as the recipient’s own bank may also impose a deposit return item fee, which can range from approximately $5 to $8.

Re-depositing the check without confirmation from the maker is generally not recommended, as it could lead to additional fees if it bounces again. Instead, requesting an alternative payment method is often the most effective approach. Options include cash, a certified check, a bank transfer, or electronic payment methods, which can offer more certainty than another paper check.

Maintaining thorough records of the returned check and all communications with the maker is also a prudent step. This documentation can be helpful if further issues arise or if there is a dispute over the payment obligation. Being proactive in addressing the returned check can help minimize financial inconvenience and potential fees.

What It Means for the Check Writer

For the person who wrote the check, a “Refer to Maker” return carries several financial consequences and responsibilities. Their bank will almost certainly charge a fee for the bounced check, commonly known as an insufficient funds (NSF) fee or a returned item fee. These fees typically range from $25 to $40, though some banks may charge more, with the average NSF fee being around $34.

The original payment obligation remains, and the check writer is still responsible for fulfilling the debt. Repeated instances of bounced checks can negatively affect the check writer’s banking relationship, potentially leading to account closure.

While a single bounced check might not directly impact a credit score, a pattern of such occurrences, especially if they lead to unpaid debts being sent to collection agencies, can indirectly harm creditworthiness. In rare instances, particularly with repeated offenses or large amounts, writing bad checks can have legal ramifications, potentially leading to misdemeanor or even felony charges depending on the jurisdiction and intent. Addressing the underlying issue that caused the check to bounce and promptly arranging payment helps restore good standing with both the payee and the bank.