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Can a Canceled Check Still be Paid
If a check is canceled, can it be resubmitted later for payment?
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 This should never happen, but it does, and it took some detective work to get to the bottom of the matter. In that case, a customer had sent his original canceled (paid) personal check to a merchant as proof that he had paid a bill. The merchant either didn't pay attention, or deliberately defrauded the customer by depositing the check a second time. If the customer had sent a copy, instead, the merchant would not have been able to make the mistake.
In today's check processing world, a similar problem can arise when a merchant converts a customer's check into an electronic fund transfer item and collects funds using the automated clearing house (ACH). Unless the original check is returned to the customer, it could, through mistake or fraudulent design, be submitted in paper format.
When a check is paid twice, whether in paper form, or in paper and electronic form, the duplicate payment is not authorized. A customer's best defense against this problem is prompt and careful review of bank statements, and an immediate notice to the bank if a duplicate payment is suspected.
Published on BankingQuestions.com 1/26/07
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