Returned check Reason 12: What does it mean? What to do in this situation?

Finding out that a check has bounced can raise a number of concerns, especially if you're unfamiliar with the specific reason for the bounce. If you've been informed that your check has bounced due to Reason 12, it's crucial to understand the reasons behind this decision and how you can proceed to correct the issue.

In this article, we'll explore in detail what check bounce reason 12 means, the situations that can lead to it, and offer practical guidance on how to avoid this type of problem in the future. By the end of this article, you'll have the information you need to handle the situation effectively and prevent it from happening again.

What is Check Return Reason 12?

Reason 12 for a check bounce occurs when the check is stopped or revoked at the request of the issuer. In simple terms, this means that the issuer has requested the bank not to pay the check, regardless of the available balance in the account.

Reason 12: Common Causes

Several situations can lead to a check being returned for reason 12. Below are some of the most common reasons:

• Commercial Disagreement: The check issuer disagrees with the service or product received and chooses to cancel the payment.
• Error Filling: After issuing the check, the issuer notices an error in the filling and stops the check to avoid problems.
• Loss or Theft of Check: If the check is lost or stolen, the issuer can request a stop payment to prevent it from being cashed by third parties.
• Negotiations in Progress: The check is issued as part of a negotiation, but a stop payment is requested while the terms are still being discussed.

How to Avoid Returns for Reason 12

To minimize the chances of having checks returned for reason 12, consider the following practices:

• Confirm Before Issuing: Please ensure all details are correct and that you are satisfied with the service or product before issuing the check.
• Negotiate Clearly: If there is any disagreement, try to resolve the issue before issuing the check, avoiding the need for a later stop.
• Keep Your Check Safe: Keep checks in a safe place to prevent loss or theft that could lead to a suspension.
• Communicate Clearly: If you need to stop a check, inform the beneficiary of the reason and propose an alternative solution.

What to Do When a Check Returns for Reason 12?

If your check was returned for reason 12, follow these steps to resolve the situation:

1. Check with the Bank: Confirm with the bank that the suspension was requested correctly and understand the details of the refund.
2. Contact the Beneficiary: Inform the check recipient that the check has been stopped and explain the reasons. Offer an alternative payment method if necessary.
3. Correct Errors, if Applicable: If the suspension was due to a filling error, reissue the check with the correct information and ensure that the new check will be accepted.
4. Consider Alternatives: If the suspension was necessary due to a disagreement, explore other ways to resolve the issue and, if necessary, use different payment methods.

Other Reasons for Check Returns

Besides reason 12, there are several other reasons why a check might bounce. Here are a few examples:

• Reason 11: Insufficient funds – There is not enough money in the account to cover the amount of the check.
• Reason 21: Check presented after the due date – The check was presented for clearing after the validity period (usually 6 months).
• Reason 22: Signature discrepancy or insufficiency – Signature missing or inconsistent with the record.
• Reason 31: Formal filling error – Failure to fill in a mandatory field, such as the date or amount in words.
• Reason 37: Blank checks – The check was issued without all the required fields being filled out.
• Reason 44: Check issued against closed accounts – The issuer’s account was closed before the check was presented.
• Reason 48: Check already cleared – The check was presented more than once for clearing.
• Reason 59: Check incompatible with account – Check does not match the account type or has discrepancies in the information.
• Reason 113: Divergent signature – The signature on the check does not match the one registered with the bank.