Accounting MascotAccounting Q&A

What are dishonoured cheques?
submitted by Ty Malone

Robles

A dishonored check is a check that the bank refuses to process. They usually won't clear it due to insufficient funds. Sometimes it could be a mismatch in signatures that causes security concerns.

When a check is dishonored, it is returned unpaid, and the issuer may be liable for penalties or fees.

Julian

It's a check that the bank doesn't accept. They can reject it when there isn't enough money in your account, or there's some security problem with it. When that happens you might have to pay a fee, depending on why it was rejected.

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