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When bank may refuse to pay the check?

Updated: 9/20/2023
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12y ago

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  1. When the signature on the cheque doesn't match the customers signature
  2. When there are not enough funds in the account
  3. When there is any overwriting or editing in the cheque without a counter signature
  4. When the cheque is expired (More than 90 days from the date of issue)
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12y ago
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Q: When bank may refuse to pay the check?
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Does a check a check you accept have to have your name on it?

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What do you need to be sure of before you write somebody a check?

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What if I write a personal check and my account doesn't cover it will it still cash?

Your bank may choose to cash it, at their discretion, and assess a fee on your account which could be from $20-40 depending on your bank's fee schedule. Or, your bank may choose to return the check to the payee (whoever you wrote it to). In this circumstance, if the payee presents the check for payment at your bank, they will likely be told to return to you for an explanation of why they are unable to cash the check. But if they cash or deposit it at another bank and the check is returned unpaid, they will be charged a "returned item" fee by that bank and will probably be quite unhappy with you, and may even request that you pay the fee in addition to paying the check.


How much does it cost to process a check?

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Why might a bank refuse to cash check?

A Bank might refuse to cash a cheque due to a variety of reasons. Some of them are: a. The signature of the cheque issuer does not match bank records b. There is not enough money in the issuers bank account to pay for the cheque c. There is overwriting in the cheque and is not duly counter-signed d. The amount in numbers and amount in words does not match e. The cheque is very old and expired (more than 90 days old)