Discuss Ten Reasons Why A Cheque Will Be Dishonored?


5 Answers

Anonymous Profile
Anonymous answered
Dishonored Cheques;
  Effect not yet cleared
  Not sufficient fund
  Payee's endorsement required
  Drawer's signature differs.
  Alteration requires full signature
  Cheque post dated
  Cheque mutilated
   Amount in words and figures differ
   Stopped payment
Emraan Varshani Profile
Emraan Varshani answered
Technical reasons like
Signature not matched
unrecognized handwriting
editing the cheque
Insufficient balance
incorrect info or less info on check, which was supposed to be filled in.
Date should be within 6 months, not more than 6 month because cheque validity is only upto 6 months.
------***------, This are the reasons, which is known to me, if someone knows more and precise answer than this than you r most welcome.
thanked the writer.
Bob Yacknowitz
Bob Yacknowitz commented
These are true in theory, but not true in the real world. The only reason a bank will not honor a check is if it doesn't know what account the check is drawn on.

Even insufficient funds is not a reason to dishonor checks. It depends on the credit worthiness of the individual and any contractual arrangements you might have. For others, banks love to honor the check as a "convenience" and then charge a $39 fee for allowing you to overdraw. And the fee can be charged for more than one check.
Bob Yacknowitz
Bob Yacknowitz commented
Unfortunately, checks are made out of paper and paper can be damaged. The account number printed at the bottom of the check is read magnetically and not optically. It is easy for it to be damaged. In most cases, the check processing department will repair the damage. If they can't repair the damage and there is no name printed on the check(highly unlikely) the bank might return the check. But the check must be significant enough to warrant investigation. If it isn't, it's possible to get a free ride. Don't forget large banks process millions of checks every night......

Another important point. The question "how long does it take for a check to clear" Within the US a check generally always clears bank to bank in one day. The issuing bank has x number of days to return the check for whatever reason is specified. Hope this helps!!!
maro amin
maro amin commented
i think a cheque dishonor due to
fake signatures
unauthorized person encashing the cheque
claims are less than amount of cheque
bank times out etc
maro amin Profile
maro amin answered
According to my 2 months experience as an internee in a bank the bank dishonors the cheque due to fake signatures and the person who is the payee if not present and send other unauthorised person to encash the cheque.
If amount on cheque is more than claims.
Anonymous Profile
Anonymous answered
Mic OGOBUCHI...a bank can dishonour a cheque if the payee acts suspiciously.also if there is no specification on the amount to be paid.some one can say something better.
Bob Yacknowitz Profile
Bob Yacknowitz answered
There is only one real reason a bank will consistently not honor a check.(I am talking about the issuing bank). If the issuing bank cannot determine the account number, it will not honor the check. Even an insufficient balance will not cause a check to be returned. Many banks will honor the check depending on the customers history and various other factors.

All the other reasons may be true in theory, but in these days of automation and enormous check processing volumes, they are not reality.
thanked the writer.
Emraan Varshani
Emraan Varshani commented
Sir, i agree with u, however I'd like to add that bank wont support each and every cust, depends... on the bank and trust relationship. If you are known to the bank's manager, then definitely he/she will support u, otherwise not..
Secondly A/C number, that shouldn't be an issue, because while issuing cheques, all the banks usually prints the A/C number on the cheq itself not with the pen, but computerized, so there is negligible change of dishonor as A/C number is concerned..
Plz comment on it, if i am wrong ??

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