What is a check return? Why would a check need to be returned?
A check return occurs when a check that has been deposited or presented for payment is sent back or "returned" to the person or entity that deposited it. This happens because the check cannot be processed or honored by the issuing bank for different reasons. When a check is returned, the bank typically provides a reason for the return. This might be indicated by a code or a description on the check or in the account statement.
| Code | Description |
|
Stop Payment |
The person who wrote the check may have issued a "stop payment" order to their bank, instructing them not to pay the check. |
|
Refer to maker |
Bank is unable to process the check, and the payee should contact the person or entity who issued the check (the "maker") for clarification. |
|
Duplicate presentment (supporting documentation shall be readily available) |
Check has been presented for payment more than once. The payee should first verify if the check was indeed already deposited. If it was, the payee should not attempt to redeposit it. Instead, the issue should be clarified with the bank. |
|
Stale dated |
Check that has not been cashed or deposited within a certain period of time from the date it was written. *Time frame may vary depending on the bank or issuing entity. |
|
Endorsement missing |
Check lacks the necessary signature(s) on the back to authorize its transfer or cashing. An endorsement is required to legally transfer ownership of the check from the original payee to the receiving party. *It could also be missing a "Restrictive Endorsement", this is a endorsement that might include phrases like "For Deposit Only" along with the signature. |
|
Endorsement Irregular |
Problem with the endorsement on the back of the check. |
|
Signature(s) missing |
One or more required signatures are not present on the check, making it invalid for processing. |
|
Signature(s) irregular, suspected forgery |
The bank has flagged the check because the signature does not match the expected signature of the account holder or appears to have been tampered with. This is typically a protective measure taken by banks to prevent unauthorized transactions or fraud. |
|
Altered/fictitious item. Suspected counterfeit/counterfeit. |
The bank suspects the check has been altered, is fictitious, or is a counterfeit item. This is a serious issue that usually involves potential fraud. *Replica of a legitimate check or it mimics the appearance of a legitimate check. |
Tips to prevent check returns!
- Endorse checks correctly
- Deposit promptly
- Check for alterations
- Confirm bank information
- Monitor your bank account regularly
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