Banking Check Deposits Date Stamping Checks For Deposit Only

We have business units that receive checks for deposit.  As an internal control, they have been instructed to stamp the checks "For Deposit Only" as soon as they are received so that no one can do anything else with the checks.  One of the business units has a stamp that includes a date stamp in addition to the "For Deposit Only" text.  Sometimes that business unit is not able to deposit checks until a day or two after they are received.  Therefore, if they stamp them when received, the date stamp will not match the deposit date.  Does this matter?  It seems to be that it doesn't but I want to try to make sure before issuing guidance. I believe the date stamp only pertains to the date the business unit receives the check and has no relationship to the date the check is actually deposited.  If there is a relationship, then that would mean we would have to instruct that particular unit to hold off on stamping the checks until the date of deposit which would be an internal control weakness because they would have checks on hand without the "For Deposit Only" stamp on them.  Any thoughts?  Thank you.
dbfromnewjerseyAsked:
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JohnBusiness Consultant (Owner)Commented:
if they stamp them when received, the date stamp will not match the deposit date.  Does this matter?

If the deposit date is later than the stamp by a reasonable time, there is no issue.  The deposit date will be the date of deposit.

Where I am, the banks want the deposit account number written on the cheque as well.

Be aware that cheque deposits are highly mechanized and older style controls are not always honoured (like "for deposit only" and stale dates).
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dbfromnewjerseyAuthor Commented:
Thank you.
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nickg5Commented:
Some people post date checks. If a check is received by you on March 5th and the person who wrote it dated it March 9th, they did this because their account may not have the needed funds until then.

Our previous landlord required the check to be postmarked by the 4th of the month. The post office postmark on the envelope. However, with so many tenants, there was one couple who did not get their pay checks until the 10th. They made their checks out to make sure they were postmarked by the 4th but they put the 10th on the checks because the check would bounce if processed before the 10th.
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You don't want bounced checks that are good..........your may want to try to note the dates on the front of the checks.

Here you see reference to contacting the person who may have post dated a check to you. It could prevent a bounce.
http://www.bankingquestions.com/checksyoureceived/2009/q_0511_postdated.html
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aleghartCommented:
A date on the back of the check should have no bearing on whether the check is paid out.  The date of issue on the front of the check is the determining factor.

If the date of deposit is more than six months from issue date, the bank may not make funds available to the depositor.  See Uniform Commercial Code  U.C.C. 4--404

§ 4-404. BANK NOT OBLIGED TO PAY CHECK MORE THAN SIX MONTHS OLD.
A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date, but it may charge its customer's s account for a payment made thereafter in good faith.

Post-dated checks may be deposited, and the issue date is often ignored.  It may cause overdrafts , and is not advised.  Neither the depositor's or maker's bank are obligated to delay processing.  The maker/payer can send specific notice to his own bank requesting that a check not be processed early.  The check must be identified exactly, not a general request to honor any post-dated checks.

Depositor's bank may withhold availability of funds for post-dated checks on the grounds that the check may be noncollectable under  U.C.C. 4--401.

§ 4-401. WHEN BANK MAY CHARGE CUSTOMER's ACCOUNT.
(c) A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty.
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nickg5Commented:
For Deposit Only for account xxxxxxxxxxxx (written on the back of the check under the line where it is endorsed by the payee) is the way we were told to protect our checks. Here in the USA.

I owned a business from 1979-1984 and again 2005-2009. Even checks accepted on Ebay before they forced all buyers to use Paypal.
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When you receive a check from someone, you must endorse it before cashing it or depositing it. This is done by signing your name on the back of the left end of the check. You can also limit who can cash it by specifying in your endorsement that it is only to be deposited into your specified account at Provident. Provident is our bank.
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JohnBusiness Consultant (Owner)Commented:
@dbfromnewjersey  - As we have noted over the last month, there is no particular issue with what you are doing. Have we answered your question?
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