Uncleared check

An uncleared check is a check that has not yet been paid by the bank on which it was drawn. Such a check has already been recorded by the payee and presented to its bank. There is a clearing cycle that must then be completed that lasts several days. During the clearing cycle, the payee's bank presents the check to the payer's bank, which then forwards the cash amount stated on the check to the payee's bank. During the clearing cycle, the payee does not have use of the cash.

Similar Terms

An uncleared check is also known as an outstanding check.