Rubber Check

AAA

DEFINITION of 'Rubber Check'

Another name for a "bounced check." A rubber check is a slang term used for a written check that does not have the funds available to be deemed good. A rubber check cannot be processed because the writer either (a) has insufficient funds in the account, which the check is drawn, or (b) has placed a stop payment or cancellation on the check, making it impossible for the check holder to cash the check.

INVESTOPEDIA EXPLAINS 'Rubber Check'

In either case (insufficient funds or stop payment) the check writer knowingly issues the check with the intent to not make good on the payment. While the practice is not illegal, it is a sign of poor business character in most cases. Additionally, most rubber (or bounced) checks are subject to high bank penalty fees, typically ranging from $20 to $40 per bounced check.

RELATED TERMS
  1. Bulk Filing

    This check processing operation involving the high-speed sorting ...
  2. Holdovers

    Checks that are in transit that are delayed during the collection ...
  3. Check

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

    A slang word for a check that cannot be processed because the ...
  5. Crossed Check

    Any check that is crossed with two parallel lines, either across ...
  6. Bad Check

    A check drawn on a nonexistent account or on an account with ...
Related Articles
  1. How Wells Fargo Became The Biggest Bank ...
    Stock Analysis

    How Wells Fargo Became The Biggest Bank ...

  2. Bag The Best Bank Account
    Insurance

    Bag The Best Bank Account

  3. Tired Of Banks? Try A Credit Union
    Retirement

    Tired Of Banks? Try A Credit Union

  4. Bank Advisor Blunders And How To Avoid ...
    Personal Finance

    Bank Advisor Blunders And How To Avoid ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. 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 ...
  3. Ratio Analysis

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

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

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. 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" ...
Trading Center