How Long Are Business Checks Valid?

Individuals routinely receive checks from businesses for refunds, payrolls and services performed. There are times when people inadvertently or intentionally delay depositing these checks, resulting in questions regarding how long they are valid.

Time Frame

Banks have the right to refuse a business check six months from its issue date. This is the same time frame applied to personal checks.

Terminology

A business check that is more than six months old is considered "stale dated."

Effects

Some banks will turn away stale dated checks completely, while others will accept them provided they are subjected to delayed availability. The regulations in place that define stale dated checks give banks the freedom to design their own policies for dealing with these checks.

Considerations

Although it can be inconvenient, refusing to accept a stale dated check is done for the depositor's protection. Banks may worry about funds still being available for a stale dated check and in turn wish to protect their customers from any fees or liability for insufficient funds.

Solution

As each bank sets its own policy, it is wise to contact the financial institution where the check will be deposited to learn the specifics of how they deal with stale dated business checks. In some cases, it may be more convenient to contact the business for a new check.