Although 'post' means after and 'pre' means before there is actually no difference when it comes to cheques for some reason! Same kind of deal as Flammable and Inflammable A post dated cheque is a cheque dated after it was written, hence you cannot bank it until the date written on the cheque. A pre dated cheque is one dated before it was written, often people do this when the months, or year changes ie it is dated 1st April , but the actual date is 1st May , you know, you are still writing 4 for April when it is actually 5 May. This happens a lot in the new year. I believe a cheque is ok for 12months from written date, but this law may be different in other countries. No such thing as a pre-dated cheque really as if a payment is due on a particular date i.
Consumers and businesses are advised not to accept post-dated cheques because of the problems they create if they are paid into their bank accounts before the due date. There are no specific rules on how banks deal with these post-dated cheques if they are paid in before the due date.
Types of Cheques - Post Dated Cheque By Knowledge Topper (Urdu/Hindi)
If the bank does not spot that the cheque has been post-dated the cheque would be paid before you intended it to or even returned unpaid if you have insufficient funds in your account - potentially incurring charges for you. The habit of post-dating cheques goes back to when the only means of payment was by cheque or cash; i.
Historically, if someone wanted to phase their payments, such as for paying into an insurance policy, they issued a series of post-dated cheques to the recipient. Because this was an accepted payment method, the receiver of the cheque had a system in place for making sure that the cheques were not paid in before the intended date.
However, very few people have these post-dating systems in place now as there has been a move to automation, so any post-dated cheques they receive tend to all be paid in at the same time, running the risk of being returned unpaid. Many banks state in their terms and conditions that post-dated cheques should not be written while some include a note at the front of chequebooks, advising that post-dated cheques should not be written.
So the safest practice is not to write post-dated cheques at all and set up a series of standing order payments, provided the recipient is set up to accept automated payments to their account.
Or you can future date a series of online or mobile banking payments.
You will need to speak to your bank. In general, banks do not charge cheque writers for returning a cheque unpaid because it is post-dated.
If your bank paid the cheque and increased your overdraft, you should speak to your bank about this, though you might find it was outside the terms and conditions of your account.
However the cheque would be evidence of the debt in the event of a dispute.
It is the same advice for businesses - you should not post-date your cheques. In the past, before Direct Credits and online banking became available, if a business wanted to phase their payments the accepted way of doing this was to issue the person you wanted to pay with a series of post-dated cheques.
Pre dating cheques
However these days businesses can set up a series of automated payments through their bank branch or through their phone or online banking service, specifying the dates when they want specific payments to be made, thus retaining control of their cash-flow.
A pre dated cheque is one dated before it was written, often people do this when the months, or year changes ie it is dated 1st Aprilbut the actual date is 1st Mayyou know, you are still writing 4 for April when it is actually 5 May.
Dec 02, Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. NerdWallet Compare, Inc. Dec 21, Cheques are treated as being for immediate payment irrespective of whether post dated or not. You are solely relying on the person you paid the cheque to, to hold it until the date on the cheque. Post dating is often covered in the terms and conditions of your bank. In short however, as soon as you issue a cheque, it is valid to be cashed. Post-dating a check makes sense only if you are certain that the payee will not cash or deposit the check before the date appearing on the check. Example of a Post-dated Check. To illustrate, let's assume that on May 22 Jim owes a supplier $2, for purchases made 40 days ago. Since Jim does not have the money to pay the supplier, he offers to.
This happens a lot in the new year. I believe a cheque is ok for 12months from written date, but this law may be different in other countries. No such thing as a pre-dated cheque really as if a payment is due on a particular date i.
If you pay your bill on the 10th, when it was due on the 1st, you can still put the 1st on the cheque just to sort of give 'em the finger, so to speak! Or to imply that it took a long while in the post.
That's 'pre' dating. If you give someone a cheque on the 10th, but put the 31st on it, they cannot pay it into their account until the 31st at the earliest.
That's 'post' dating. PS: nice to see someone who can spell 'cheque' correctly - notice how many of those dotty scams on the internet implore us to send them our 'check'.
The habit of post-dating cheques goes back to when the only means of payment was by cheque or cash; i.e. before the advent of automated payments such as Direct Debits and standing orders. Historically, if someone wanted to phase their payments, such as for paying into an insurance policy, they issued a series of post-dated cheques to the recipient. Post-dated cheques in Indian law are considered under the Negotiable Instruments Act, Post-dated cheques are common and enforceable. In , the Supreme Court ruled that a post-dated cheque is a bill of exchange and does not become payable on . May 11, This is so easy!!! No such thing as a pre-dated cheque really as if a payment is due on a particular date i.e. 12/05/07 banks/creditors will accept a cheque dated on any date up to and including this date (pre-dated) whilst a cheque dated any time after 12/05/07 is a "post dated" cheque and the recipient cannot put it into the bank until (or after) the date on the cheque.
I don't think that there is term called pre dated cheque. I sometimes put a date on earlier than true date when I realise that a bill is slightly overdue, am I 'pre-dating' my cheque!?
Yes confirm. pre dating cheques agree, rather useful
They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There is a difference.
A predated check just means it arrived before due. A post dated check means you signed it not to be cashed before a certain date.
Pre-Dating TM is the world's largest Speed Dating service for single professionals with monthly events in over 70 cities in the US and Canada. If you are so successful and busy that you don't have time to meet new people, don't like to date clients or co-workers and are not interested in the bar scene then try Pre-Dating speed dating events! Is it illegal to pre-date a check? to act as if you paid something before you actually did? I am referring to a check that is dated a week before it is actually mailed to the recipient, to make it. Jun 19, It's wise to communicate first with whoever wrote the check-there's probably a reason it's postdated. If the account does not have sufficient funds, the check might bounce, and you might have to pay insufficient funds or overdraft fees to your bank. You can try to get those fees reimbursed by the check writer, but collecting from somebody who's already low on funds can be time.
So basically post date only matters if there is a legal issue.