Can a bank or credit union cash a post-dated check before the date on the check?

However, many banks will waive non-customer check cashing fees if it’s a check that the bank issued and can verify. You should also check your state’s laws and your bank or credit union’s policy before writing a postdated check. Ask the cashier, or better yet a manager, if writing a postdated check would be an acceptable form of payment.

• If you don’t need the money immediately, this is another courtesy to the check writer, and this can help keep trust between you and them.
• In states that have not adopted the UCC, post-dated checks may be unenforceable.
• “From a criminal law perspective, there is nothing inherently illegal about postdating a check,” says Eric Hintz, a criminal defense attorney in Sacramento, California.
• Lastly, in some cases, people will write a post dated check knowing that they won’t have enough money in their account to cover it by the date on the check.
• You can try to cash a postdated check early, but it may or may not work.

The amount that is immediately paid out can depend on your account, your bank’s policies, the value of the check, and even the type of check you receive. Cashing a check technically means to immediately process and trade the check for the same amount of cash. Depositing a check means you’ll put the payment into the account of your choosing, where the funds can then be accessed once the payment is processed. If a bank has a policy of NOT accepting post-dated checks before the post-date, and the recipient tries to cash the check at a teller, the teller can easily say no. Be prepared for the possibility that the check funds won’t be available. Not only do you not want to incur an insufficient funds fee, you don’t want to go through the trouble of obtaining a reissued check.

What Does it Mean to Post-Date a Check?

The option you go for will determine how and where you process the paper payment. However, a rejected payment (or an unexpected withdrawal from your checking account) can cause numerous problems. If you properly provided instructions to your bank and they pay funds from your account anyway, your bank should be required to cover any overdraft charges that result.

It’s important to only accept postdated checks from people you trust or have a longstanding financial history with you regarding postdating checks. A “check” is a negotiable instrument intended for immediate negotiating, NOT as a promissory note). Cashing a postdated check might be more difficult than depositing it. Depositing allows your bank to place a hold on the funds while the check clears, but cashing a check requires an immediate transaction.

Contact the issuer of the check and ask them to write you a new one. We’re the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly. MyBankTracker has partnered with CardRatings for our coverage of credit card products.

In addition to understanding the risks and potential issues with providing a postdated check as payment, consumers should be cognizant that it is illegal to intentionally write a bad check. In M.’s case, it appears it was indeed “at the bank’s discretion” to process the payment when it was received. Still, she tells Consumerist that the bank in question agreed to remove the overcharge fees incurred as a result of the situation. If you take a check to a business that doesn’t cash checks, they won’t be able to verify the payment and won’t be willing to give you cash. Taking your check to a bank or credit union where you aren’t an account holder is fine if that financial institution is the one that issued the check. If it’s an unrelated entity, you may or may not be able to cash the check.

• Third-party retailers and businesses will typically charge a fee to cash your check, and may limit the amount you can cash.
• In some cases, the issuing bank may charge you a fee to cash the check if you don’t have an account there.
• The Uniform Commercial Code (UCC) governs the use of post-dated checks in interstate commerce.
• However, there are some financial institutions that will charge a nominal fee for this service.

However, checks with “void after 90 days” written on them can often still be cashed if they’re within 180 days of issuance. While the use of paper checks has declined in recent decades, you may still come across them from time to time. In 2018, checks were used to pay for 5% of all U.S. consumer transactions and 10% of consumer bills—a minority in the payments world, but still present. While postdating a check won’t guarantee a delay, you can specifically instruct your bank not to cash a certain check until a certain day.

Is it Illegal to Post-Date a Check So That it Will be Honored When I Have Enough Funds in the Bank?

To cash a check without a bank account, you can first try taking it to the issuing bank, assuming it has local branches. The issuing bank will be printed on the face of the check; a quick search online should reveal if it has a brick-and-mortar location in your area. Every check-cashing fee you pay is money wasted, so try to avoid them whenever you can. We believe by providing tools and education we can help people optimize their finances to regain control of their future.

Although this is more for convenience rather than lack of funds. Unfortunately, this is not always honored by banks or the organization cashing the check. First, let’s take a look at some possible reasons why you would want to postdate a check. You’re writing a check to your landlord, but you don’t have enough money in your account.

Postdated checks are also used for purposes other than cashing or depositing when funds become available. A postdated check can simply serve as another way to keep a record of when you made scheduled payments to someone so that there will be documentation of when a bill was paid. In some cases, postdated checks get deposited, and nobody ever notices (they don’t look closely at the date). Unless there’s a problem or complaint, those checks are processed and forgotten about.

However, if you call them and arrange for the funds to not transfer, then they are obligated. This, however, often comes with a fee of about $30 for the bank to monitor your funds. If you are concerned about overdrafting — and you’d rather not deal with a returned check and your landlord’s ire — consider switching to a bank with a solid overdraft policies.

Can you cash voided checks?

If an account overdraft happens, there are usually a few fees that are levied, such as insufficient funds or an overdraft fee (and sometimes both). Banks will often try to collect this from the writer, if possible. When you write a check, you two teach limited are essentially giving the payee’s bank permission to take the money out of your account when the check is presented for deposit as discussed above. The funds won’t actually be transferred until the check clears, which can take a few days.

Banks have different policies for how long they will continue to monitor to prevent premature payment. If your check is cashed prior to the postdate, and funds are not available, be prepared for a headache and additional fees. Many bigger banks, however, will honor postdates as part of banking agreements. Be sure to check with your bank about specific account disclosures for more information. Banks are not obligated to wait until the date on a check to cash it or deposit funds.

What happens when you post date a check?

Additionally, the only time a bank can be held liable for processing a postdated check before the indicated date is if that notice is still valid. In which case, the CFPB says the institution may may be on the hook to cover damages such as the cost of overdrafts and other fees. Consumer advocates who spoke with Consumerist say that while there are several reasons someone might think it’s a good idea to use a postdated check, it’s not generally recommended. She says that many people who end up falling into predatory lending traps like payday loans have also used postdated checks to try to stave off debt collectors.

Businesses may reject a postdated check as a form of payment — and this is well within their legal right. You should clear it with your bank and your payee before writing a postdated check. Depositing a postdated check a day early may cause the check writer’s bank to attempt to pay the check immediately. If the check writer does not yet have the funds in his bank account, this will cause the check to “bounce,” or be returned for nonsufficient funds. A check is a negotiable instrument that can be used to make payments or withdraw cash.

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Do not be surprised if they do not allow it even if it is in line with state laws. The check writer is waiting for money to be deposited or for another check to clear before the payee will be able to cash the check without overdrawing the writer’s account. Can a bank or credit union cash a post-dated check before the date on the check? Banks and credit unions generally don’t have to wait until the date you put on a check to cash it.

What if the Bank Cashes a Post-Dated Check Early?

Keep in mind that banks may require up to two weeks of prior notice before you issue a postdated check. This is so they have time to prevent a check from being paid if it’s already been issued. This varies by bank, so be sure to ask your specific financial institution about their policy. To cash a check, you’ll either need to visit a bank where you are an existing account holder or, in some cases, a branch of the bank that issued the check. You can also cash many checks at check-cashing businesses or retailers that offer check-cashing as a service, though either of those options will incur fees. In some cases, the issuing bank may charge you a fee to cash the check if you don’t have an account there.