As a result, the transaction is not considered as issuance of a "bad check" since the creditor released the merchandise or performed the service in reliance of the check writer's promise to pay at some later date rather than in reliance of the check's negotiability.
A negotiable instrument can be made payable “on demand” or “at a definite time.” (UCC § 3-104.) A post-dated check is an order to pay the bearer at a definite time in the future.
Although it is legal to post-date a check, the bank to which the check is presented for payment may charge the payor’s account even before the date of the check and even if doing so creates an overdraft.
There is a down side to accepting post dated checks...
If a creditor accepts a post-dated check in exchange for merchandise or services, in many jurisdictions the seller is considered to have extended credit to the issuer of that check.
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One of the myths that somehow refuses to go away is the myth that post-dated checks are "illegal." They are not.