It’s important to read the fine print as provided by the issuer. After 1-3 years, Western Union will charge a fee against the value of the money order. U.S.P.S. money orders do not expire and retain their value indefinitely.
Plus, the person who wrote the bounced check might be charged a non-sufficient funds fee of up to $35. Banks are still allowed to process an old check as long as the institution believes the funds are good. A Federal Reserve regulation says a bank does not have to deposit a check if it has reason to doubt that it will be able to collect the money from the paying bank. The offers that appear on this site are from companies that compensate us.
Even if the payee never cashes the stale check, this doesn’t mean that your business receives extra cash. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
If a replacement check was cut, then void the outstanding check. The policy should more clearly outline what you are going to do if a recipient does not cash a check that you’ve issued. Certified checks guarantee that there are funds in the account, so those cashing the check don’t have to worry about it bouncing. Santander Bank, for example, charges $15 a check, while at Wells Fargo and Bank of America, the fee is $12.
How Can Plan Sponsors Deal With Stale Dated Checks?
Generally, a “stale check” (also called a “stale-dated check”) is an uncashed check that’s more than six months old. Although banks, credit unions or other financial institutions might let you cash or deposit an outdated check into your account, the law doesn’t require them to do so. Most would simply consider voiding the check and making the funds available for use.
The company that issued the money order could charge a nonrefundable fee that’s taken from the check amount if you don’t cash the money order within one to three years. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you’ve been given a check, it’s best to cash or deposit it as soon as feasible. If you hold onto a check for a while you run the risk of the account number or routing number changing or the check writer may have forgotten about the check and spent the money on something else.
Contact Procurement Services at to verify whether the check cleared the bank, was cancelled, was reissued or is still unclaimed. If the owner says that the check is lost, or you notice that it has become a stale check, you’re going to need to issue a new check. In addition to creating a new check, you should also issue a stop payment on the old check. If the company does not cash the check, you’re going to have to go through the escheatment process, and you’ll end up losing the cash either way. Letters should alert the owner of your obligation to turn over the property to the state. Let the owner know how he or she can claim his check and provide a deadline for doing so.
“Void” cannot be used in most computer software programs because it has the effect of zeroing the check on the date written which changes all the prior month reports. List the voided check as a negative check on the treasurer report. While no motions are needed to void a check, motions are needed to reissue, especially if the check was issued in a previous term. Some programs, such as MyPTEZ, record the “Void” with the current date.
This process highlights checks that haven’t been presented to the bank for payment or uncleared checks. A “stale” check — one that hasn’t been cashed within six months of the original issue date — can cause you problems and cost you in bank fees. It’s important to know that when you get a check it may not be valid forever. Checks can become “stale dated” and may be harder, or even impossible, to cash.
Putting a company policy in place for stale-dated checks
We also offer a suite of services related to state and local tax challenges. Unclaimed property provisions implement two rules for determining the fiduciary state. Under the primary rule, the property is remitted to the state of the owner’s last known address as shown on the holder’s books and records.
- Since you owe that money to either the state or the property owner, uncashed checks should never be voided.
- This latest act empowers the adopting states to review virtually any general ledger category within a corporation’s chart of accounts for possible property subject to escheat.
- Generally speaking, money orders don’t expire, but they could become so old that they fall under abandoned property regulations or the value is eaten with fees.
- It’s also critical that all employees, especially accounting personnel, know that unclaimed property doesn’t belong to the company.
- Check the program currently in use to determine how to best void checks.
- You should also keep diligent records of the attempts you made to contact the business owner.
Your checks provide instructions to the bank not to cash the check after 180 days. Eight months later, you realize that the vendor has still not cashed the check. Personal checks are typically good for 6 months (180 days), but business checks, government checks, U.S. Treasury checks, cashier’s checks, money orders, and traveler’s checks are different. Unclaimed Property is anything negotiable that has monetary value.
How long is a certified check good for?
Be considerate — call or text the payer to let them know your intent. Make sure to also double-check that they haven’t switched financial institutions or opened a new account. “Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
Business checks often have a notation stating how long they’re valid, usually between 90 days and one year. If no such statement is present on the check, most banks will exercise their right to refuse a check more than six months old. A common way to identify stale-dated checks is by reviewing regular bank reconciliations.
If you discover an old cashier’s check, contact the issuing bank and ask them what they need from you to handle the transaction. The six-month time frame generally applies to personal and business checks — including payroll checks. A stop payment informs your bank that you do not want the check cashed. A stop order prevents the other business owner from cashing both the original and new checks. Money orders don’t expire, but cashing in a money order late might cost you.
If the issuing bank is still in existence, then the traveler’s checks are still valid. Please note that it’s always possible that Western Union or U.S.P.S. have changed their rules. Contact the issuer of your money order to find out if they have an expiration date or charge fees against old money orders.
Though you want to avoid letting a check go out of date, there are some important considerations for a check that has become outdated. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. The Huntington National Bank is an Equal Housing Lender and Member FDIC.
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