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.

BREAKING DOWN '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. Stop Payment

    A request made to a financial institution to cancel a check or ...
  2. Certified Check

    A type of check where the issuing bank guarantees the recipient ...
  3. Float Time

    The amount of time between when an individual writes and submits ...
  4. Signature Loan

    A type of personal loan offered by banks and other finance companies ...
  5. Bounced Check

    A slang word for a check that cannot be processed because the ...
  6. Automatic Transfer Service - ATS

    A banking service offered to customers that has both a general ...
Related Articles
  1. Personal Finance

    Top 5 Reasons Banks Won't Cash Your Check

    Learn the top reasons that a bank won't cash your check, and find out what steps you can take to prevent those scenarios from happening.
  2. Managing Wealth

    2015's Top Checking Account Promotions

    Open a checking account in 2015 and the bank could give you a cash bonus. Check out these top offers.
  3. Investing

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  4. Managing Wealth

    Top Premium Checking Accounts of 2015

    Which banks offer the best deals for premium checking accounts – and what do you have to do to qualify for one?
  5. Personal Finance

    The 8 Best Bank Perks

    Many banks are now offering free perks to entice new customers.
  6. Personal Finance

    10 Checking Accounts the Ultra Rich Use

    These accounts – created specifically for the wealthy – come with special extras such as personal bankers, waived fees and the option of placing trades.
  7. Investing

    The Best Small Business Checking Accounts in 2016

    Accounts with big banks offer frills, such as mobile and text-based banking – but for small businesses, local banks and credit unions can save money.
  8. Personal Finance

    The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against those of their brick-and-mortar peers.
  9. Small Business

    Best Checking Accounts For Small Businesses

    What you need to know to choose the best checking account for your small business – and where to look.
RELATED FAQS
  1. What are the differences between preference shares and bonds?

    Learn what information banks keep on file for their customers, and understand how this information can be used to deny an ... Read Answer >>
  2. How do you calculate payback period using Excel?

    Understand the various fees that can be assessed on a personal or business checking account, and learn methods to avoid being ... Read Answer >>
  3. What US banks offer free checking accounts?

    Quit wasting money on monthly fees associated with your checking account and get a free checking account from reputable national ... Read Answer >>
  4. How does bouncing a check affect my credit score?

    Learn the many indirect effects on your credit score when you bounce a check. Read Answer >>
  5. How do government-issued stimulus checks affect the economy?

    Stimulus checks are payments given to individuals by the government based on taxes paid in the previous year. The hope is ... Read Answer >>
Trading Center