How long does it take a check to clear?
If youre paying by check then its important to know how long it will be until the amount is cleared. Its easy enough to bank a check, but its not as instant as a bank transfer or cash, so depending on your situation, it may not be the best way to make your payment. That said, it does remain one of the safest ways to send money in the post without needing anything more than the recipients name. Hold time is the period of time between when you deposit a check and when the funds cleared in your account. So, even if you were to deposit a check at 9am on a Friday, the actual funds may not appear in your account until the following Wednesday. Checks have hold times because the banks first need to make sure that the amount written on the check is actually available in the senders funds. Because we rarely deposit checks on the same day, week, or maybe even month, that they are written, the financial situation of the sender may have changed considerably in the interim. When the amount promised on the check cannot be paid by the account it has been sent from due to lack of funds (or non sufficient funds NSF), the check will bounce, i.e., cannot be processed. Writing a check that will bounce, also known as a bad check, either because of NSF or the account simply not existing, is known as check kiting and is illegal. If you write a bad check unwittingly, you will likely still face fees from your bank. If you receive a bad check, dont automatically assume illegal activity  anyone can accidentally write a bad check, having been caught out by an unforeseen expense that has resulted in NSF. Check beforehand  A bank will describe its check clearing times in their policies. If you frequently get paid in checks and need them cleared quickly, its well worth shopping around for the best bank before you open any account. For the majority of cases, your check will clear within two working days. The same hold times generally apply to checks deposited online via apps, though the ability to deposit 24/7 means some banks will clear it immediately or within one business day. There is general guidance offered by the Federal Regulation CC that describes a reasonable period of time for banks holding checks, which is generally:  Two business days for checks from the same bank  Up to seven business days for other checks  In most cases, a regular check will clear in two working days, but banks reserve the right to hold them for longer if they deem it necessary. We can help  GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.