Rubber Check

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.

BREAKING DOWN '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. Bad Check

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

    A type of check where the issuing bank guarantees the recipient ...
  3. Bank of First Deposit - BOFD

    The bank where a check is initially deposited to an account. ...
  4. Check Hold

    Denotes a period of time equal to the maximum number of days ...
  5. Canceled Check

    A check that has cleared the depositor's account and has been ...
  6. Electronic Check Presentment - ...

    A process that allows financial institutions to exchange digital ...
Related Articles
  1. Investing

    Banking: Check-Writing 101

    By Amy FontinelleThe ability to write checks from your checking account allows you to pay bills or send money to relatives more securely than using cash and less expensively than using a cashier's ...
  2. 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.
  3. Trading

    Banking: Managing Your Checking Account

    By Amy FontinelleBecause your checking account is the nexus of all your banking activity - the main place that your money flows in and out of - you'll need to do a few things to keep an eye on ...
  4. Retirement

    How To Do a Background Check on Prospective Employees

    Discover why background checks can be extremely costly, tips for small businesses conducting checks on a budget and if professional checks can be avoided.
  5. Markets

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  6. Personal Finance

    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.
  7. Managing Wealth

    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.
  8. Personal Finance

    Traveler's Checks Vs. ATM Cash: Tips for Tourists

    Traveler's checks were once the preferred way to make purchases overseas, but most tourists now get cash at an ATM – or use credit or prepaid debit cards.
  9. Markets

    Check Point Is In Its Competitors' Crosshairs, But May Be Too Cheap

    Check Point has ample competition and a philosophy that seems more oriented towards maintaining profits than growing them.
  10. Investing

    The 8 Best Bank Perks

    Many banks are now offering free perks to entice new customers.
RELATED FAQS
  1. 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 >>
  2. Do stimulus checks work?

    In theory, stimulus checks are intended to increase the amount of capital in the economy. By giving back tax dollars in the ... Read Answer >>
  3. Can a checking account go negative?

    Find out about negative checking account balances and the ramifications. There is a price to pay, but smart consumers can ... Read Answer >>
  4. How often should I be checking the NAV of my mutual fund shares?

    Learn why the net asset value (NAV) of a mutual fund should be monitored regularly and understand the reasons why you should ... Read Answer >>
  5. Can a checking account affect your credit score?

    Find out if having a checking account can have a negative impact on your credit report. Generally, it doesn't, but there ... Read Answer >>
  6. Can my daughter be held accountable for her employer's bounced checks?

    My daughter worked for an organization three years ago when she was 18. The company had trouble mainta... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center