Rubber check definition
/What is a Rubber Check?
A rubber check is a check that has been rejected by the bank on which it was drawn. This situation arises when the maker did not have sufficient funds in the underlying account to cover the amount of the check. A rubber check is a sign of poor cash management by the maker. When this situation occurs, the bank will likely charge a fee to the maker. If the maker has an overdraft protection agreement with its bank, then the bank will lend the shortfall to the maker, so that no checks will bounce.
Terms Similar to a Rubber Check
A rubber check is also called a bounced check.