Mitheral wrote:The way my accountant explained it is that technically a post dated cheque is a kind of cheque fraud if the writer doesn't have the money in the bank when written. This is why stores/banks get away with charging you outrageous NSF fees. In practical terms it is also totally worthless until you've actually got your money from the deposit. Most cheques are proccessed with the barest glance by a human being.
The correct procedure is to properly date the cheque and then write on the back "Do not process/accept for deposit until foo" where foo=the date you're going to have the money in the account.
I'll tell you what's weird about this:
Don't most retail stores use some kind of automated check processing service to confirm the validity of the account, and also, I THINK, something to do with creditworthiness?
I can't tell you how many times I've gone to Home Depot on a Thursday afternoon, paid by check, but the funds from my salary direct deposit are not there until overnight that evening. I used to think that these services were kind of an automatic deduction thing, but I guess not, because the funds AREN'T there until hours later.