Returned check Reason 37: What does it mean? What to do?

Check bounces are a common occurrence in the banking system and can occur for a variety of reasons. When a check bounces, it means it was not accepted by the drawee bank, and the amount was not credited to the beneficiary's account. This process can cause problems for both parties involved—the issuer and the beneficiary—as it affects the liquidity and reliability of commercial transactions.

Check bounce reasons are classified by specific codes, which help identify the exact reason why the check was rejected. For example, reason 11 is used when a check is returned due to insufficient funds on the first attempt to cash it. reason 21 occurs when the check is stopped or revoked, either at the request of the issuer or due to some other circumstance that justifies the suspension.

But do you know what reason 37 means?

In this text, we'll explain everything you need to know about check bounce reason 37, including its causes, consequences, and how to prevent it from happening.

Returned check reason 37: What does it mean?

Returned check reason 37 is used when there is an inconsistent record on the check during the clearing process. This means that the information presented on the check does not comply with the standards established by banking systems. These inconsistencies can include discrepancies in numerical and word values, printing errors in critical data, or inconsistencies in the check's encoding. Such issues prevent the check from being processed correctly and securely, resulting in its return.

Reason 37 refunds are a security measure to ensure that all banking transactions are carried out accurately and reliably. This type of refund protects both banks and customers from potential fraud or errors that could compromise the financial integrity of both parties.

What to do if your check is returned for reason 37

If you receive a returned check for reason 37, it's crucial to take the appropriate steps to resolve the inconsistency and ensure proper payment. Here are your options:

1. Review Check Information: Carefully check all information entered on the check. Make sure the numerical amount matches the amount written in words, the date is correct, and all required fields are filled out clearly and accurately.
2. Issue a New Check: When you identify an error, the most common solution is to issue a new check with the corrected information. Ensure all information is correct to avoid a refund.
3. Contact the Bank: If you can't identify the problem, contact your bank. Bank staff can help clarify the inconsistency and provide guidance on how to correct it.
4. Communicate with the Beneficiary: Inform the beneficiary about the check return and the steps being taken to resolve the issue. Transparency and communication are essential to maintaining a good business relationship.
5. Request Help from a Professional: If you have persistent questions or the problem is recurring, consider seeking the help of an accountant or financial professional who can review your check-writing procedures and offer advice on how to avoid future errors.
6. Opt for Electronic Payments: Consider using electronic payment methods, such as bank transfers or payments via banking apps. These methods are less prone to input errors and can offer greater security and convenience.

By following these steps, you can resolve your check bounced for reason 37 and avoid future hassles by ensuring your payments are processed efficiently and securely.

Reason 37 can be resubmitted?

When faced with a check returned for reason 37, many people wonder if it's possible to resubmit it to the bank to try to cash it again. The answer is yes; in many cases, it's possible to resubmit a check returned for reason 37. However, it's crucial to understand the conditions and procedures for this resubmission.

The possibility of re-presenting the check will depend on the bank's policies and procedures, as well as the specific nature of the inconsistency that led to the return. In many cases, if the identified problem is correctable and there is no violation of banking rules or laws, the issuer may correct the inconsistency and re-present the check within a specified timeframe, usually up to 30 days from the date of the initial return.

Does a returned check expire? How long do I have to resolve the issue?

Returned checks, including those returned for reason 37, have specific timeframes to be resolved. A check is valid for six months from the date of issue. Within this period, if a check is returned for any reason, the issuer has up to 30 days to correct the inconsistency and resubmit the check to the bank. It's important to act quickly to correct errors and avoid additional complications that could further delay payment.

If the inconsistency isn't resolved within this 30-day period, the check may need to be reissued with a new issue date, which can cause payment delays and negatively impact business relationships. To avoid these issues, consult your bank for detailed guidance on how to proceed and ensure that all check information is correct upon resubmission.