Exception Item

AAA

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. Bad Check

    A check drawn on a nonexistent account or on an account with ...
  2. Check

    A written, dated and signed instrument that contains an unconditional ...
  3. Checking Account

    A transactional deposit account held at a financial institution ...
  4. Bounced Check

    A slang word for a check that cannot be processed because the ...
  5. Stop Payment

    A request made to a financial institution to cancel a check or ...
  6. Insufficient Funds

    Occurs when an account cannot provide adequate funds to satisfy ...
Related Articles
  1. The Ins And Outs Of Bank Fees
    Options & Futures

    The Ins And Outs Of Bank Fees

  2. Your First Checking Account
    Insurance

    Your First Checking Account

  3. When Good People Write Bad Checks
    Budgeting

    When Good People Write Bad Checks

  4. How Wells Fargo Became The Biggest Bank ...
    Stock Analysis

    How Wells Fargo Became The Biggest Bank ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center