cheques need to be cleared
- Thread starter builder22
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whats wrong with that policy?
cheque is pretty much an IOU for £XXX you get it in XX days.
cheques can bounce, garage then has trouble trying to chase the payment if the customer already has the car.
maybe they take card payments if you ask but don't like to do so because of the fee
I’m ready to be proved wrong, as I’ve never used one, but I thought that with a bankers draft, you had to give your bank the cash to issue it, i.e, if you wanted a draft for £250, then you either had to give the bank £250 cash, or authorise them to take it from your account.
I think that it's exactly that; the money is already in your account, and you're authorising the bank to take it from your account and issue a bankers draft for that amount. That's the way that it works here with cashier cheques: "Would you like me to debit your [current account] or savings account to cover this cashiers cheque?"
Correct as it's a cheque guaranteed not to bounce basically but they charge you a £15ish fee for the pleasure
Maybe the companies you pay know you.
Maybe the companies you know are not desirable to rip off.
Someone I know used to accept cheques then insisted on bank transfers after getting burned. There is no safety in accepting someones bit of paper saying they might pay you.
Soldato
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My dad still does! My granny who is 25 years older than my dad is more with the times and uses internet banking for transfers. Apart from my dad, the last time I cashed in a cheque was in 2005 when I sold a plasma light on eBay
Soldato
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Haven't you heard? Cheques are back, or at least will be shortly, as new rules will mean that banks must clear cheques by next working day, and the better banks will allow deposit via image.
Soldato
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I can't imagine many companies accepting cheques. They aren't worth the paper they are written on if the money isn't there. No surprise people who do take them have a policy that they should clear before goods delivered.
Soldato
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Come off it lol
I know NatWest have something in the pipeline to allow you to digitally scan a cheque in to be cleared much faster than traditionally.
I got a cheque yesterday from Green Flag as they had underpaid the refund due when I cancelled on buying the new Kia. As the original payment was by DD and the first refund by DD it was a bit surprising.
The only time we use cheques now is a couple a month to pay savings into two Building society accounts. That could probably be done by card transfer. Can't remember the last time I made a retail payment using a cheque. The exception being when we bought the Kia and paid by building society cheque which is effectively a bankers draft. (And that caused more than a bit of grief when we thought the dealer had mislaid it).
As regards waiting clearance of a large cheque before parting with an expensive item or service - absolutely. Not sure if banks still have the ability to do a fast clearance on payment of a fee - used that many years ago selling an old car.
The only time we use cheques now is a couple a month to pay savings into two Building society accounts. That could probably be done by card transfer. Can't remember the last time I made a retail payment using a cheque. The exception being when we bought the Kia and paid by building society cheque which is effectively a bankers draft. (And that caused more than a bit of grief when we thought the dealer had mislaid it).
As regards waiting clearance of a large cheque before parting with an expensive item or service - absolutely. Not sure if banks still have the ability to do a fast clearance on payment of a fee - used that many years ago selling an old car.
The majority of places will no longer accept a bankers draft for immediate payment, due to forgery and fraud in the form of the drafts (they're basically just bank cheques) being stolen.
don't cheques from the same bank to the same bank, clear instantly anyway?
with faster payments for bank transfers, I don't get why all cheques don't do this
I'm probably skating on thin ice here, as I'm recalling this through dim and distant memory, but years ago if you paid by cheque, you produced a cheque guarantee card, which originally I think,
covered cheques up to £50, but eventually increased to £100.
The merchant, or in my case me, as the Black Cab driver accepting the cheque, wrote the card number on the back of the cheque, then you accepted the cheque with no qualms.
Eventually, as CC use became more prevalent, I, and every taxi driver gave cheques the elbow, too much aggravation checking the bank card, and writing the number down.