Why does a cheque not clear?

Answer 1

Just to clarify, there is a difference between a check that "bounces" and a check that doesn't "clear." However, they are often related.

A check that bounces means that the bank of the person who wrote the check refuse to transfer the funds to the person attempting to cash or deposit the check. Most often this occurs because the issuer of the check doesn't have enough money in his/her checking account to pay the amount of the check. Sometimes it can also occur because the person who wrote the check "cancels" the check. (To do this you must go to your bank and sign a stop-payment order). Checks can also bounce if the bank doesn't believe the check is authentic or there is a question about the amount of the check or if the check hasn't been properly written, endorsed, and/or authorized.

Typically, when someone says a check "didn't clear," they are referring to an electronic check verification system. Many businesses and merchants use an electronic scanning system to read the account number of a check and then cross-reference that account number with a database of checking accounts that have outstanding checks that have bounced. For example, if I have recently written a couple of checks that have bounced and then I attempt to purchase some items at the grocery store, the cashier might run my check through a check-scanning machine. It will read my account number and suggest that the cashier refuse my check because it has detected a high-probability that this check will bounce.

Answer 2

When a deposited cheque has not been signed by the issuer what is the procedure

Answer 3

When a deposited cheque has not been signed by the issuer what is the procedure