Once deposited or cashed, the time it takes a check to clear will depend on several factors. If the financial institution of first deposit or the paying financial institution processes checks through a clearing bank, it may add an extra day to the time it takes for the check to be entered into the Federal Reserve Bank. If the payee’s financial institution is not local, it may add extra days to the time it takes the check to reach the paying bank. If the check is damaged so the MICR line is illegible, it may add days or weeks to the time it takes the check to reach the paying financial institution.
Many financial institutions are now converting checks into optical images that are cleared electronically. The Check 21 items can clear on the same date they are received by the payee’s financial institution. Other checks may be converted into ACH electronic items which will speed up the time it takes to clear.
Although a check is considered “Stale Dated” if it was written more than 180 days prior to presentment for deposit or payment, the paying financial institution may pay the check. A check represents a contract between the issuer of the check and the payee and there is really no time limit on when that contract expires. The payee could pursue payment of a check well beyond 180 days and even for years after the check was written.
