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A cancelled check is a check that has been approved by a bank or another financial institution. Once a check is processed, and all appropriate accounts have been credited, it then becomes a cancelled check. At that time, some form of designation, usually a stamp, marks a cancelled check as cleared. Thus, a cancelled check can be considered a token of clearance of transferred funds. As such, a cancelled check may be employed or required as a proof of payment or receipt of transaction. If used in this capacity, both the front and the back of a cancelled check may be required. Unlike a cancelled check, an outstanding check is one that has not been processed and approved by the bank where it originated. |
