What is Returned check?

A returned check is one that has not been paid by the financial institution from which it was drawn.

A returned check is one that has not been paid by the financial institution from which it was drawn. The most common reason for the same is that the account from which it was drawn does not have sufficient funds to cover the entire amount of the check.

Other reasons for a returned check include:

• The check is made payable to a foreign bank.
• The check has been mutilated.
• There is a discrepancy between the numeric and written amounts to be paid on the check.
• The check was presented for payment after the check date had passed.
• The check maker issued a stop payment order, which prevents payment on the check from being made.
• The check was drawn from a closed account