Do Checks Expire? How Long Do You Have To Cash a Check Leave a comment

Expiration dates and other issues regarding check use are governed by the UCC—that’s a set of laws that regulate commercial transactions in the https://www.bookstime.com/articles/sole-trader-bookkeeping U.S. Some checks are good for about 6 months, and others may never expire. The content on this page provides general consumer information.

Chase for Business

As a business owner, you should take time to clearly outline how your company handles stale checks. The first step to implementing a practical company policy for stale-dated checks is to understand state laws. Consider the type of unclaimed property you could potentially have and investigate the state dormancy period for each. Contrary to popular belief, a check never really “expires.” A bank is not required to cash a check if it’s more than six months past the check date. However, the bank does have the freedom to honor a stale-dated check, regardless of any restrictions listed on the check. Many states have unclaimed property laws that require businesses to turn unclaimed funds over to the state rather than simply write off the expense.

Cashier’s Checks

Cashier’s checks can be a little confusing with regards to expiration dates, which can vary based on local laws. If a cashier’s check has a pre-printed expiration or void date, it’s probably best to cash it before then. This expiration date makes sense when you consider that people often use checking accounts for smaller, day-to-day expenses. By not cashing a check in a timely manner, it may cause the account to be out of balance. However, if you’ve ever found a check several months after it was issued, you may have wondered, “Do checks expire? ” It’s a good question to ask, and the answer will likely depend on the type of check.

Are stale-dated checks valid?

For example, if the $100 supplies check is subject to unclaimed property laws, you would debit the unclaimed property liability account for $100 and credit supplies expense for $100. When you do turn the funds over to the state, debit the liability account for $100 and credit cash stale dated checks for $100. Money orders are typically easier to buy than cashier’s checks. Money orders are available at the post office, banks, Walmart, Western Union, and select supermarkets and convenience stores. They’re also more affordable, and you don’t need a bank account to purchase one.

Typically, banks print the words “void after X days” on cashier’s checks that can go stale. If you’ve found a “forgotten” cashier’s check, look for this disclaimer. After the expiration date, the bank may consider the funds unclaimed property and transfer them to the state in a process called escheating[2]. However, you can still contact the bank and request a replacement for a stale cashier’s check.

• You can fund a money order with cash, a debit card, or traveler’s checks.
• In the United States, each state has laws about unclaimed property, which includes checks that have yet to be cashed within a certain time.
• Such a call may be awkward, but it’s better than imposing an overdraft fee on the person or business that wrote it.
• Whether or not that restriction is valid depends on several factors.
• We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site.
• If a check you wrote is approaching the six-month mark but still hasn’t been cashed, you’ll be able to spot it so that you can get in touch with the recipient.
• One way to avoid this occurrence is to maintain a balanced checkbook.

This is regardless if all the information you have included on the cheque is correct and accurate. Basically, including your signature is giving permission for the recipient to cash it. If you can, it’s usually best practice to cash checks when you receive them. This facilitates a more seamless payment experience for both the sender and the receiver. Traveler’s checks don’t normally expire if the issuing bank or institution is still in business. Checks issued by the federal government (such as tax refunds or benefits) usually carry an expiration date of one year.

What to do if you receive a stale-dated check

• A bank or financial institution is required to cash certified cheques and cashiers cheques even if they’re more than six months old.
• If time goes by, you might find yourself wondering “How long is a check good for?
• Like money orders, cashier’s checks are prepaid and thus offer the payee a higher level of confidence that the payment will go through.
• If you deposit a check from a closed account, the check will bounce, and your bank may charge you fees for depositing a bad check.
• Appropriate forms of identification are Driver’s License and Social Security Card; although, a state issued photo I.D.

Next steps: Ways to avoid a check going stale