Define: Unpaid Cheque

UK Accounting Glossary

Definition: Unpaid Cheque



What is the dictionary definition of Unpaid Cheque?

Dictionary Definition


A cheque that has been sent to the payee’s bank and then through the clearing process only to be returned to the payee because the value cannot be transferred.

If the reason is lack of funds the bank will mark the cheque “refer to drawer”.


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Full Definition of Unpaid Cheque


A cheque from which funds are not transferred because there are insufficient funds in the payer’s account.

For example, suppose Paul writes a check to Peter for £500, but there is only £400 in Paul’s checking account. When Peter deposits the check, his bank will refuse to credit the £500 to his account, because Paul’s bank will advise that Paul doesn’t have enough money to honour the cheque.


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Synonyms For Unpaid Cheque


Bounced Check, Bounced Cheque


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Unpaid Cheque. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/unpaid-cheque/ (accessed: April 04, 2020).
American Psychological Association (APA):
Unpaid Cheque. PayrollHeaven.com. Retrieved April 04, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/unpaid-cheque/

Definition Sources


Definitions for Unpaid Cheque are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th May 2019.