A check is a paper tool that instructs you to pay money from a bank account. When you issue a check, you are the payer and the recipient of the check becomes a creditor.
Checks are valid for 6 months from the date stated on the check unless the check specifies a shorter period.
When you deposit a check into your account, your bank sends a picture of the check to the payer’s bank. The purpose is to collect the amount of the check to be credited to your account. This process is known as check clearing.
Things to consider
If your account does not have enough money, your check will be rejected. You may have to pay fees:
Write the name of the payee clearly
Use dark permanent ink and draw an additional line after the name.
Write the amount in words and then “only”. Cut out extra spaces by drawing a line
Outdated checks cannot be deleted immediately. When checks are returned, transaction fees apply.
Notify your bank immediately. You can only stop a regulated check payment if it has not been approved or borrowed. The bank can charge an administration fee.
What happens if a check is returned free of charge
If you are a believer
You will not be paid. Instead, your bank will send you a check return document (IRD) and a return check recommendation with instructions on whether you can resend it to the same bank to clear the IRD.
If you don’t have enough money in your account, check that what you wrote is failing. For the reimbursement of interest fees for checks and sight deposits (OD), you must pay a transaction or administration fee to cover the bank’s loss of interest overnight.
Please contact your bank for details.
Keep a record of every check you have written on the check counter slide (or save the checkbook of your checkbook. This can help you keep track of the total amount you paid.
If you have any question about bank accounts then join the discussion. howtodiscuss.com
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