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Home >> Checks/Money Orders >> Checks You Received
Stop Payment or Check Cleared?
I deposited a check on 8/29 which is the same day a customer said he would stop payment. As of 9/3, it shows the funds in my account. Does this mean that the check cleared and I am safe?
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 August 29, 2008, was a Friday, and Wednesday, September 3, 2008, was only two business days later. That's not enough time to allow for the check to make the trip to the issuer's bank, and back to your bank.
Let's assume that the check was drawn on another bank in the same check processing region, sometimes called a local check. A 2006 study by the Federal Reserve System found that two thirds of returned or unpaid local checks are received by the bank of deposit three business days after the day of deposit (that would be September 4 in your case). According to the study, it takes five business days before 90 percent of bounced checks are received back by the bank of first deposit. Add one business day for your bank to charge the stopped check back to your account. That means that even though your bank may allow you to withdraw those funds, you probably shouldn't count them as yours until the sixth business day after the day of deposit, or September 9th. Even then, there's still about a ten percent chance that the check could come back.
Published on BankingQuestions.com 9/04/08
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