Question about presented Checks/cheques

[Glass]

I think the process has changed in recent years and I'm more interested in how things used to be done when checks are processed by a bank. In Australia we fill up a check (amount), stipulate the order (pay to the order of/for deposit only), then we sign the check on the front (endorse it) and finally we present the check (give it to the other party).

In Australia we never see the check/cheque again. However other things happen to the check in the background. The check goes from the bank it was presented at, to the clearing service. They in turn, alert the bank that the check was drawn on and the check is given the all clear or refused for defect.

I remember that in the US, the check/cheque issuers bank sends the presented check back to the person who drew up the check.

My question is what does the bank do to the check? Is there a bankers endorsement on it? Does it have some notice on it such as "Presented" or "Cancelled". Some thing to show that the intrument has been processed? I think it's going to be on the back but it may be on the face of it. Not sure. It might just be a bankers stamp and initials but it could be more than that.

Does anyone understand why they send them back to you?

If anyone could fill in the blanks for me I'd appreciate it. thanks

[Dogman]

It used to be that you got your checks back, and with all the bank routing chicken tracks on the back you knew it has been processed.

Now they or at least my bank, keeps the check and sends you a photocopy sheet (s) of all your checks they have processed. I assume they destroy the original check.

I could be wrong, because I for some reason or the other, have really never given it much thought or study. As long as everything balanced out I was happy.

[sirgonzo420]

They returned them to the issuer of the check, to "complete the cycle" as it were.

Check originates with Bob, who makes the check out to George, signing the lower right side of the instrument.

George owes some money to Tom for an unpaid gambling debt, so he signs the check over to Tom, who then presents the check to the bank upon which it was drawn, for payment.

The bank processes the check (that is, they debit/credit accounts, and other banking voodoo) and gives Tom the cash.

The bank then returns the check to Bob, confirming that the check had been paid, and the matter settled.

[Glass]

Thanks guys.

Is there anything special put on the check by the bank? Is it just somehting like a Date stamp and Clerks initials (maybe a couple of these if the check passes through several banks) or is there a notation on there like "Processed" or "Presented" or "Cancelled"?

[Dogman]

Thanks guys.

Is there anything special put on the check by the bank? Is it just somehting like a Date stamp and Clerks initials (maybe a couple of these if the check passes through several banks) or is there a notation on there like "Processed" or "Presented" or "Cancelled"?


Yes!

Usually on the back, but initials on the front. Cashier may circle your name and info on the front and initial it.

Once it gets run through the system, there can be no doubt that it has been processed.

[Sparky]

Thanks guys.

Is there anything special put on the check by the bank? Is it just somehting like a Date stamp and Clerks initials (maybe a couple of these if the check passes through several banks) or is there a notation on there like "Processed" or "Presented" or "Cancelled"?
The bank that processes the endorsed check puts their dated stamp on it. Then the clearing house puts their stamp on it to indicate that it has cleared. Their stamp is a bunch of numbers, which also includes the clearing date.

[Ponce]

At least you guys get something, all that I get is a pice of paper with all the checks numbers, ammount and dates that they were cashed......If I need a physical check all that they send me is a copy of the check.

V

[BabushkaLady]

Checks used to be sent back to you as "proof" of payment or retained as your receipt.

You also would receive back to you a "bad" check written to you that was never honored. That check was allowed to be presented twice, then returned NSF (non-sufficient funds). You could then present it at a bank manager to watch the account and swipe the funds or get a new check from the original party.

This was the banking law that changed how checks processed and how payments can be presented electronically. "Check 21":
http://www.federalreserve.gov/paymentsystems/regcc-faq-check21.htm

Most of the float time was lost when everything went electronic.