Cheques are becoming less and less common to make or receive payments. Not only are they easy to lose, but it can take longer for funds to reach the right account with a physical cheque. This is where you might run into a situation with a stale-dated cheque. Writing a cheque means that you’re asking your bank or financial institution to take money out of your account and transfer it somewhere else.

This is especially important to make sure you make payment by the due date if you’re mailing the cheque. You also want to make sure that there’s enough money in your account to help avoid any extra fees. Checks that remain outstanding for long https://www.bookstime.com/ periods of time can’t be cashed, as they become void. Outstanding checks that remain so for a long period of time are known as “stale” checks. Some checks become stale if dated after 60 or 90 days, while all become void after six months.

What are the Dangers of Cashing Stale-dated Checks?

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Make sure you check with your bank, as not all financial institutions offer stop payments. The most important thing when issuing a cheque is to make sure there are enough funds in your bank account to cover the amount. Your financial institution will most likely charge a non-sufficient funds fee if you don’t have enough funds in your account. Make sure you allow more than enough time for the cheque to reach the appropriate person, vendor or merchant.

What Are Stale-Dated Checks?

When it comes to organizing the finances for your business there can be a lot to know and understand. You want to have processes in place to pay staledate bills, settle any debts and pay your employees. And sometimes you might need to write a cheque to or receive one from a vendor for payment.

Non-sufficient checks or bounced checks can be accompanied by criminal and civil penalties in the state of New York. Intentionally writing bad checks is an unlawful act that
can be costly. Businesses have an obligation to attempt to collect money that is legitimately owed to them and will pursue legal
action against individuals who have written bad checks.