Exception Item

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DEFINITION of 'Exception Item'

A banking term used to describe a check that cannot be processed. Reasons may include the fact that a stop payment order has been made, the customer's account has been closed or the check is missing a signature.

INVESTOPEDIA EXPLAINS 'Exception Item'

In recent years, computer software programs have been developed that help bank personnel spot and resolve exception items in a more efficient manner.

RELATED TERMS
  1. Check

    A written, dated and signed instrument that contains an unconditional ...
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  3. Bounced Check

    A slang word for a check that cannot be processed because the ...
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    A request made to a financial institution to cancel a check or ...
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