Postdated Check Definition

Any check which is written for a future date is known as a postdated check. For example, if you know that you are getting paid on Friday you might write a check paying a utility bill on Tuesday, but write Friday’s date on the check-incorrectly assuming that the bank will not honor the check before Friday. In fact, most banks will process postdated checks on the date they are received.

Thus, writing a postdated check puts the check writer in a certain amount of risk. Postdated checks are commonly used in conjunction with payday loans; the check writer will write a check for e.g. $344 dollars and postdate it by one week, exchanging it with the payday lender for $300 in cash. In turn, the payday lender agrees to not deposit the check until the postdated date.