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. Bounced Check

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

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

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

    Any check that is crossed with two parallel lines, either across ...
  5. Certified Check

    A type of check where the issuing bank guarantees the recipient ...
  6. Negative Float

    The period of time between when a bank customer writes a check ...
Related Articles
  1. Personal Finance

    What is a Bounced Check?

    Bounced check is a slang term to describe a check that cannot be processed because its writer has insufficient funds.
  2. Personal Finance

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  3. 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.
  4. Personal Finance

    What is a Cashier’s Check?

    A cashier’s check is a check written on a financial institution’s funds.
  5. Personal Finance

    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?
  6. 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.
  7. Markets

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  8. 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.
  9. 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.
  10. 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.
RELATED FAQS
  1. 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 >>
  2. Could I deposit a check I received from Edward Jones, cancelling my IRA account, ...

    I had a SIMPLE Individual Retirement Account through Edward Jones while working for M. Potteiger, Inc. I stopped working ... Read Answer >>
  3. 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 >>
  4. Can someone like me invest that little and grow some money?

    I have never invested, or know anything about it. I have always been interested. Penny picks shows stocks for like $ 0.5 ... 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 >>
  6. Are checks escheatable?

    Learn that unpresented checks become unclaimed and escheatable by the state, when the state obtains and holds the title to ... Read Answer >>
Hot Definitions
  1. Bond Ladder

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

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

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

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

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center