From Manual Processing to Mobile Scans: How Cheque Clearing Rules Have Shifted

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A dishonoured cheque creates immediate financial friction. Often termed an NSF (non-sufficient funds), bounced, or returned item, a rejected draft triggers penalties that range from $15 to $45, alongside administrative delays. Cheque fraud remains a resilient financial crime because scammers actively manipulate clearing delays through altered routing strips and forged endorsements.

Protecting yourself requires careful record-keeping during the deposit process:

• Wait for the funds to settle: Digital apps often post provisional credit to your ledger within minutes, but final settlement through the central clearing network can take two to five business days. Do not spend against large deposited cheques until the balance is confirmed as collected.
• Hold the paper draft securely: Once you complete a mobile capture, write "Electronically Deposited on [Date]" across the front face above the memo line. Store the physical paper in a secure lockbox for at least 14 to 30 days before shredding it.
• Guard your account number: While writing an account number endorsement protects an ATM drop, never hand an endorsed cheque bearing your account number to an unfamiliar individual. A fraudster can use your routing and account numbers to generate fraudulent automated clearing house (ACH) debits.