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Key takeaways
- Banks often refuse to cash checks to protect against fraud.
- Your relationship with the bank and the status of your account can influence their decision.
- Checks that are postdated or stale (older than six months) or have a hold on them can be refused.
In this digital age, it’s easy to forget that people still use checks and need to cash them. We have payment apps like Zelle and Venmo, debit cards, and credit cards, yet checks are still widely used in the United States. Writing one is simple and banking apps make mobile deposits as easy as pie, but when it’s time to cash your check you may have to follow a few more steps.
Holding a check in your hand and facing a bank’s refusal to cash it can be frustrating. There are various reasons why this might happen. Check out the top 6 reasons a bank won’t cash your check so that next time you’ll be prepared.
1. You don’t have an account there
If you don’t have an account, the bank doesn’t have to serve you. Many banks have a policy where they primarily cater to their account holders. This is to reduce the risk of fraud.
If you don’t have an account with the bank, they may not have enough data about you to confidently cash your check without the risk of potential repercussions.
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2. The amount is too large
Banks maintain a limited amount of cash on hand to serve their customers. If the check amount is exceedingly high, the bank might refuse to cash it to avoid handing over too much of their daily cash.
To combat this, you can call the bank in advance and inquire if they can cash a large amount. They might request that you schedule an appointment or visit the main branch to ensure they have sufficient funds to cover it.
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3. You don’t have a proper ID
Proper identification is crucial for cashing checks. Banks must verify that the person cashing the check is indeed the intended recipient. If you don’t have an appropriate form of ID, or if the bank teller deems the ID suspicious or invalid, they might not cash your check.
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4. The check isn’t made out to you
This situation is fairly straightforward. If the check is not made out in your name, the bank has no obligation to cash it for you. This measure serves to prevent theft and fraud.
If you’re attempting to cash a check for someone else, you’ll need authorization and may need to meet other requirements based on the bank’s policies. When cashing a check for your business, ensure your business is properly registered.
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5. The check is too old
Checks aren’t timeless instruments. They come with expiration dates, often referred to as stale dates.
If you don’t cash your check within a specified period, often ranging from 60 to 180 days, the bank might refuse to cash it. This policy is due to the increased likelihood of potential complications or disputes with checks that remain uncashed for longer periods.
6. There is a hold payment request on the check
Sometimes, checks are written for cashing or depositing on a future date. If you receive a post-dated check (one with a future date), you should ask the issuer when it’s safe to cash it.
People put holds on checks for various reasons including to make sure there is enough money in the account to cover it.
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Final Thoughts
It’s essential to be proactive when attempting to cash a check. Before heading to a bank, pack proper identification (a state-issued driver’s license), make sure the check is within its valid date, and that it’s made out to you. If you’re aware of the common reasons banks may refuse to cash a check, you can be better prepared and avoid potential hiccups in the process. If ever in doubt, reach out to your bank to understand their specific policies.
