What is a check? This is a type of a receipt that is usually received by the bank organizations from its customers for various transactions. Checks are convenient. If you do not have enough money on hand, you can even post-date a check and settle your accounts. However, not all checks are received at the bank. There are many formalities and stringent checks done by the banks before any check is cashed; formalities.
Balance of account says no balance!
Many banks require that you hold a minimum balance in your account for transactions to take place. If you write a check and there is no money in the bank, how can a bank accept your check! Post-dated checks are received but you need to ensure that money is in the account on the date mentioned on the check.
If you are an employee and you are receiving your pay through check, you need to check if all the authorized signatories have signed duly on your check. It is likely that more than one signature is required if the organization is large. Banks have certain criteria to follow before they release your money. The signatory combinations must match before the transaction can take place. It would b a good idea to counter check before you bank in. Similarly for transactions that take place in an organization.
Banks are very particular when it comes to signature.
Counterfeit checks are a big headache to those who are at the receiving end. Due to the very reason that you could write a post-dated check, transactions are carried out based on trust. You may have something you want to sell; for example your car. You carry out your transactions through the phone and you agree on prices and you are brought for the check either in person or through the email.
You head to bank to bank in your account and you are told to report the following week and see whether your cash s in your account but no sooner you are called by the bank that your check was a counterfeit check and so the bank does accept it. Your asset plus your cash are all gone. Nowadays technology is so advanced that you can rarely tell a difference between reality and illusion. Hence, it is for our own safety and theirs that such stringent measure are followed by the bank to pass your check.
You may have received your check but if you happen to forget about it or misplace it is best that you request the cancellation of the old check and ask for a re-issue of your amount. If the duration has lapsed for more than 6 months, your check will not pass through the bank.
These are some examples why a bank may reject your check. Sometimes it may seem like a hassle. You have to bank the check in and wait for it to clear before knowing whether it is cashed or not. If not, then you have to go through enquiry and re-issue of checks and repeat the process again. It is a hassle. However, the banks need to ensure the safety of itself and its clients before releasing the payment or transferring the amount and such measures are necessary.