Returned check

A returned check is a check that is not paid by the financial institution on which it was drawn. The usual reason for a returned check is that the account on which it was drawn does not contain enough funds to pay for the full amount of the check.  Other reasons for a returned check are:

  • The check is drawn on a foreign account

  • The check has been disfigured

  • The check contains a mismatch between the numeric and written amount to be paid

  • The check was presented for payment too long after the check date

  • The check maker issued a stop payment order that blocks payment on the check

  • The checking account on which the check was drawn was closed

Related Courses

Bookkeeping Guidebook 
Corporate Cash Management 
How to Audit Cash