Postdating a check is done by writing a check for a future date instead of the actual date the check was written. This is typically done with the intention that the check recipient will not cash or deposit the check until the future indicated date.
What is a postdated payment?
Postdated refers to a payment that is meant to be processed on a specified date in the future. You can postdate financial instruments such as checks or you can postdate electronic payments. Postdated payment instruments are covered under the Uniform Commercial Code, which has been adopted by nearly every state.
What is the purpose of post-dated check?
The post-dated check is the most common means of payment for a loan. It is a check that is written and issued by the debtor for a date in the future and may not be encashed or deposited until such time. Debtors use post-dated checks to avoid missing payments on their loans.
Should I accept a post-dated check?
Post-dated checks are perfectly legal. If they werent, “pay day” lenders, and other crude forms of credit, couldnt exist. Only “properly payable” checks are supposed to be cashed by banks. But just about anything with the right signature on it is properly payable, including post-dated and overdrawn checks.
What do you mean by a postdated Cheque?
To define post-dated cheque, it is a form of a cheque drawn with a future date written on it. To simply put, post-dated cheque is one which is drawn with a date which is after the date on which cheque was written.
What is the treatment of customers postdated checks?
A postdated check—a check with a date that is later than the current date—is not considered to be currency. Further, the postdated check should not be reported as part of the Cash account balance until the date of the check.
Is a postdated check cash?
Can a bank or credit union cash a post-dated check before the date on the check? Yes. Banks and credit unions generally dont have to wait until the date you put on a check to cash it. However, state law may require the bank or credit union to wait to cash the check if you give it reasonable notice.
Would a postdated check be considered cash?
Postdated checks can usually be cashed or deposited at any time unless the person who wrote the check specifically told their bank not to honor the check until a certain date. Rather than writing a postdated check, it may be better to use online payment services or coordinate with your biller to move back the due date.
Do stimulus checks expire if not cashed?
As with all US Treasury checks, you have one year to cash the check before it expires. If you miss that deadline, you can request a replacement for the expired check. You have a year to cash your stimulus check.
Can a stale dated Cheque be cashed?
The Canadian Payments Association says cheques are stale-dated after six months unless certified. A stale-dated cheque is not necessarily invalid. Financial institutions may still honour them but dont have to.