How Long is a Check Good for? (2021 Guide) – DollarBreak

Check expiration dates are a major pain. There are a lot of variables that can effect how long a check is good for, such as the company it’s written by, the bank it’s written for, how it’s written, the date it was written, how it’s written (cash or physical), where it’s written, how it’s drawn, etc. It can be difficult to know how long a check is good for unless you know exactly how it’s made up.

In 2011, I wrote a blog post called How Long is a Check Good for? (2010 Edition) – DollarBreak , which was my answer to the question. In that post, I explained that a check is good, or “valid”, for one year from the date of your written order, regardless of the date you wrote it. I also went on to help readers determine how long a check is good for in the future. Why this post? I still get asked questions like this one all the time, so I decided to update it.

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What is a cheque?

Let’s start with the basics. According to Investopedia, a check :

A written, dated and signed document instructing the bank to pay a specified amount of money to the bearer. The person or organization issuing the check is called the payer and the person to whom the check is issued is called the payee. On the other hand, the debtor is the bank on which the check is drawn.

When you deposit a check into your bank account, the money is transferred from the account of the person (or company) who wrote the check.

What is the difference between cheques and cash or electronic payments?

There are four main ways someone can pay you what they owe you:

1. Electronic bank transfers

Not everyone can do an electronic transfer. You must have an internet connection and an internet bank account.

2. Card payments

Card payments can be made online or directly, provided the payer has a card and you have a method for accepting card payments.

Digital wallets are a hybrid between electronic funds transfers and card payments. These are electronic devices that allow individuals to make electronic payments. The money is credited to a digital wallet, which can then be used to pay bills. However, this is not a common practice. A study by Forrester Consulting, commissioned by JPMorgan Chase, found that only one in four small businesses accepts payments via a digital wallet.

3. Cash

Cash is the simplest form of payment. The payer just gives you money for what he owes you. But there is a downside to carrying a bag full of money. If your money is stolen or lost, it is lost forever. This is one of the reasons why many people don’t like to carry cash.

4. check

Finally, we come to the exams. If you lose your check or it is stolen, it may be voided. Plus, it’s in your name, which means it’s much harder for the person who finds the check to cash it. In short, paying by check is popular because:

• Eliminates the risk of holding cash
• Verifying that the payer has made the payment
• Can be used as proof of the amount due if the cheque cannot be made public

Should I accept the cheque?

As a means of obtaining money, cheques remain an important part of the financial system. They will make sure you get the money and you don’t have to worry about carrying cash. If the person owing you money does not have cash or access to the internet and you cannot accept payment by card, you must accept payment by cheque.

If you accept payment by check, small business:

• You pay lower data processing fees than when you accept debit and credit card payments.
• Increase your market potential for customers who prefer to pay by check.
• Business expansion with other companies who prefer to pay their suppliers by check.

Non-acceptance of payment by cheque

Just as there are disadvantages to accepting payments by cash, card or bank transfer, there are also disadvantages to receiving payments by cheque. Here are two of the most important ones:

You will wait longer for your money

When you deposit a check into your account, you do not have immediate access to that money. You will also need to deposit a check, which usually requires you to go to your bank, and this can take time.

Then there is the waiting time at the bank, and time is money. When you add up the cost of fuel, parking and your time, collecting one check can be expensive.

You may receive an invalid cheque

A check may not qualify because the payer has closed the account or does not have sufficient funds to cash the check. In this case, you have to find the payer to get the money. It’s an effort you don’t really need.

Accept payment by cheque

If you are offered a check payment and decide to accept it, you can reduce your risk by making sure the following information is accurate:

• and that the numerical sum and the written sum are the same.
• Name of payer
• Date of cheque
• Your name as beneficiary
• signature of the payer

What happens if the cheque matures?

The biggest problem for small businesses and individuals is collecting a check they receive. Going to the bank takes time. People often put a check in a drawer with the intention of depositing it the next time they visit the bank. Then you forget to take the check out of the drawer and it doesn’t get paid.

If you leave the check in stock for too long, you run the risk of it expiring. Under federal law, the bank issuing the check does not have to honor the payment if the check is valid for six months, although requirements vary by state. At this age, the check would have expired.

Although the payer still owes you money, you are now left with the problem of finding the payment. Then you run into a new problem: the payer may have spent all the money in his account when he gave you the check.

Depositing checks shortly after receiving them is also appreciated by those you pay by check. According to Bank of America’s 2017 Consumer Mobility Trends Report, 38% of account payers are annoyed by returned or never cashed checks.

For your peace of mind, your bank balance, and to satisfy check payers, always deposit your check immediately, within six months.

Should I cash a check instead of depositing it?

Instead of depositing the check into your bank account, you can cash it. When you use a service like ACE Cash Express, you will receive money immediately (if you cash your check at ACE Cash Express) or the money will be deposited into your account immediately (if you use their electronic service).

If you need quick cash to pad your coffers, or if you don’t have a bank account, this service is ideal for you.

The checks that ACE collects are as follows:

• Personal cheques
• Paychecks
• Income tax refunds
• Government Controls
• Audits of insurance rules
• Transferring money

The check cashing process in ACE is also simple. If you receive a cheque and wish to cash it, please proceed as follows:

• Draw the back of the check you want to cash.
• show an ID with photo
• Present the cheque
• get money

It’s really that simple. If you can’t make it to ACE Cash Express, you can also cash your check online with ACE Mobile Recharge. Imagine a customer handing you a receipt for goods or services you have provided and the money ending up in your account minutes later. That is the power of the ACE Mobile Recharging application.

Of course, there are costs associated with cashing checks. ACE charges 3%, which is typical for money verification services. However, you will save time, fuel costs and the worry of not getting the money you deserve. If you consider the convenience of check shipping, 3% is a small price to pay.

Never postpone a test

Accepting payments by check makes sense for small businesses and individuals. A check serves as proof that someone owes you money and is supposed to guarantee that you will receive that money.

However, depositing checks can be time consuming and expensive. You will probably need to contact your bank. If you deposit a check, the money is not available until the check is cashed.

If you need money fast, a money verification service like ACE Cash Express is very useful. If you don’t have a bank account, this might be the best way to unlock your money. There is a small fee involved, but you and the person who wrote the check can rest easy.{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”How long are checks valid for?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” Checks are valid for 30 days after the date they are issued.”}},{“@type”:”Question”,”name”:”Can I cash an old check?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” You cannot cash an old check.”}},{“@type”:”Question”,”name”:”What happens if a check is never cashed?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” A check that is never cashed is considered a bad check.”}}]}

Frequently Asked Questions

How long are checks valid for?

Checks are valid for 30 days after the date they are issued.

Can I cash an old check?

You cannot cash an old check.

What happens if a check is never cashed?

A check that is never cashed is considered a bad check.