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What Is A Post Dated Check
A posted dated check is a check that is issued with a future date on it.
In other words, a post dated check is a check that is validly written but can only be cashed as of the future date that you have indicated on the check.
For example, you can issue a check to your friend for $100 and instead of putting today’s date on the check, you can put next week, next month, or whatever date in the future.
This way, your friend will not be able to cash the check at the bank on any day that is prior to the date marked on the check.
Post Dated Check Definition
A post dated check can be defined as a check issued on a bank account or credit union having a certain value and bearing a future date.
In essence, the date appearing on a post dated check is a date that is after the date the check was issued.
Post-dating checks are effective ways to make regular payments to someone at fixed intervals.
Let’s look at an example to see how post dated checks are used in practice.
Post Dated Check Example
Let’s look at an example of when it would make sense to issue post dated checks.
Imagine you decide to rent an apartment at a cost of $1,000 per month as of June 1st.
Your landlord asks you to pay your rent on the 1st day of every month.
You may choose to give your landlord twelve post dated checks covering your rent for the next twelve months.
This way, your landlord will only be able to cash your post dated rent check when your rent becomes due.
For instance, your July 1st post dated check will only be cashable as of July st.
Your August 1st posted check will be cashable as of August 1st, and so on.
By giving post dated checks, you are giving your landlord the comfort that he or she has the potential payment of your rent.
At the beginning of every month, you must make sure you have enough money in your account for the bank to honor your check.
Otherwise, your check will “bounce” and the landlord will receive an “NSF” or “Not Sufficient Funds” notice.
Why Write Post Dated Checks
There are many reasons why someone may want to write a post dated check.
The most common reason why a post dated check is issued is that the person issuing the check does not want to pay the beneficiary before a certain date.
For example, if you want to pay your friend $100 only as of next week, you can write a post dated check for $100 bearing next week’s date.
Another common reason why someone may issue a post dated check is because they do not have enough money in their bank account to cover the amount indicated on the check.
For example, you may want to purchase something for $500 but you only have $300 in your bank account.
However, you know that next week, your employer will deposit your paycheck in your account for $1,500 (increasing your account balance to $1,800).
In this case, you’ll write a post dated check for $500 by putting a date after the date you’re expecting to be paid.
The person receiving your check will not be able to cash your check until the day that is indicated on the check.
Post Dated Check Risks
The recipient of a post dated check should be mindful of the risks of potentially not getting paid in the event the bank does not honor the check.
When a person writes a post dated check, the writer of the check intends to have the recipient get paid at a future date.
However, the recipient must trust that the writer of the check will have enough money in his or her bank account to cover the check value.
If the writer of the check does not have enough money to cover the check, the recipient will effectively not get paid.
As a result, many businesses and companies may accept post dated checks but will not deliver the goods or render services for several days to ensure that the check is cashed and cleared by the bank.
Are Post Dated Checks Legal
Every jurisdiction and country may treat post dated checks differently.
In the United States, it is generally legal to issue post dated checks.
When you issue a post dated check, the bank will honor your check only if it is cashed at any time after the date appearing on the check (not before).
However, there are instances that you can get in trouble for writing a worthless check.
In many jurisdictions, a person intentionally writing a worthless post dated check with the intent to defraud the beneficiary can be criminally charged and convicted.
For example, if a person writes a post dated check to purchase goods but is fully aware that the check is worthless and the beneficiary will never get paid, the writer of the check may get into legal trouble.
When you write a post dated check, your primary objective is to pay the beneficiary.
However, the only aspect that is different between a check written for today and a post dated check is that the beneficiary will not be able to cash it until the date indicated on the check.
Bank Rules On Post Dated Checks
Banks and credit unions will typically accept that their account holders issue post dated checks.
However, they all have clear rules and policies that apply to checks bearing a future date.
Keep in mind that some banks have a policy where they can honor checks that are made out for a future date.
This means that the bank or credit union will not wait until the date you put on your check before allowing the recipient to cash it.
If that’s the case, you’ll need to contact your bank to specifically inform them not to cash the check until the date appearing on the check.
In commercial transactions, banks are also given the right to process a check to the extent it is valid and correctly written.
Section 4-401 of the Uniform Commercial Code states that a bank may charge against the account of a customer an item that is properly payable from that account.
Alternatives To Post Dated Checks
If you don’t want to write post dated checks, what are the other options you can consider to pay someone?
Most people now have access to their bank account online where they can process payments.
The easiest way to pay someone, instead of writing a post dated check, is to schedule a payment using your bank’s online bill payment service.
Another way you can pay someone is to accept a pre-authorized debit transaction (or automatic electronic payment).
With pre-authorized debit, the beneficiary schedules regular withdrawals directly from your bank account.
The last alternative to providing a post dated check is the good old hard cash payment.
That’s right, you’ll need to go to your bank, withdraw some money, and pay the person you need to pay!
So there you have it folks!
What does a post dated check mean?
A post dated check is a check that is issued bearing a date later than the current date.
Typically, a post dated check is issued so the issuer can delay the payment to the beneficiary.
Be sure to verify your bank or credit union’s policy on writing post dated checks so there’s no surprise to you.
Also, if you’re receiving post dated checks from someone, make sure you have enough confidence that they will have enough money in their account to honor the check.
Now that you know the ins and outs of post dated checks, good luck with your research!
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