That bank makes sure that the cheque is legitimate and there are enough funds in the cheque-writer’s account to cover the cheque, and then sends the funds to your bank.
Unlike a normal check, a postdated check is not necessarily payable on demand.
Since this kind of check is not payable on demand, most states refuse to cover postdated checks under bad check laws.
If you wrote a postdated check and your bank cashed it after you gave reasonable notice of the postdating, a skilled attorney experienced in banking laws and regulations can advise you of your rights and remedies.
Payments Canada Payments Canada has created a video to explain how cheques travel through the Canadian payments system, why those cheques are “image-conscious” and what happens if they hit a bump in the road Canada has one of the most efficient cheque clearing systems in the world and, while the use of cheques has been declining with the growing popularity of electronic and card payments, financial institutions in Canada still process nearly a billion cheques every year.
While we try to feature as many product offers on our site as we can maintain (1,200 credit cards and financial products!