Cheque Confusion

SpicyDuck

SpicyDuck

SpicyDuck

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10 Dec 2003
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I've been sorting out my finances lately, and this involved finding and opening a new Bank Account.

Some accounts provide a 'Cheque Guarantee' debit card. The one problem I can see with that is 'Does anybody even accept them anymore?'

But my confusion comes with this scenario:

A man has a £0 account balance, but he wishes to purchase something with his cheque gurantee card, to the value of £100. He never pays back the bank or uses that account again and, thus, gets away with £100 of free goods.

Surely there is something else to this, or it's the most ridiculous loophole I've ever come across? I'm thinking that say, in a shop, they would swipe your card first, to check whether you have the funds available or not.

The reason I'm asking is, I don't want somebody getting hold of my cheque book and bank card, then going on a spending spree at my own cost.

Anybody in the 'know how' regarding this matter?

Grassy-ass.
 
Yes everyone accepts them, nobody would accept a cheque without one.

If you didn't have the money you would get an unuahorised overdraft fee, interest, and a letter from your bank, don't pay it and I guess eventually you'll get taken to court.
 
It's no different to someone getting hold of your card and using it online, no?

The debit card system is actually based around the same idea. When you use it the amount is guaranteed by the bank, because it's entirely electronic though, they can check it on the fly to see if you've got enough money before accepting it. However they don't actually do that check that often, so you can still go several hundred pounds into an unauthorised overdraft before red flags start going off and your card is declined. I think my record in my student days was £300 into the red before it stopped letting me use the card.

Not gone into the red since then though, and not once on my current main bank account. *touches wood*
 
Last edited:
Moses99p said:
Sorry, I don't know the answer to your question, but I'm gonna ask a question of my own! This thread reminded me, and I guess it's better to ask here than it is to start a new thread, maybe ;s

Basically I have a cheque for someone, can I pay it into their bank myself?
Click to expand...

Sure as long as you have their account number and sort code. You could even stroll in with cash and pay that in if you liked
 
Telescopi said:
Yes everyone accepts them, nobody would accept a cheque without one.

If you didn't have the money you would get an unuahorised overdraft fee, interest, and a letter from your bank, don't pay it and I guess eventually you'll get taken to court.
Click to expand...

This is my understanding of what would happen as well. The bank would just take legal steps to recover the defecit.
 
Thanks, guys.

I take it I'd get a refund if it had been used without my permission then? Actually, how would one prove such a thing? Holder's responsibility, I guess. Ahhh, **** it; don't need one anyway if I also have a debit card. :)
 
Many debit cards are also cheque guarantee cards, however, banks are issuing less and less with the guarantee as a 25-cheque book is potentially £2500 of borrowing against a £100 guarantee card.
 
The guarantee card means that the bank will honour payment of the cheque (usually £100 or £250) so the cheque won't bounce. But you will end up with an unauthorised overdraft and the bank will be after you. Unless you had a pre-agreed overdraft limit of some sort.
 
whitecrook said:
The guarantee card means that the bank will honour payment of the cheque (usually £100 or £250) so the cheque won't bounce. But you will end up with an unauthorised overdraft and the bank will be after you. Unless you had a pre-agreed overdraft limit of some sort.
Click to expand...

Seems kinda stupid that they don't run a check on the card, though. But I guess they don't need to, if the Bank guarantee it. *light bulb moment* :o :p
 
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