Do you have a cheque that’s been issued abroad and would like to cash it? You should read this.
If you have a cheque issued abroad and would like to cash it, then you should read the following information.
As a general rule, there are two possible ways to cash a cheque: allowing the credit institution to manage its collection and then paying you the sum once all verifications have concluded, or either receiving an advance payment of the sum into your account. In this case you should bear in mind that, even though you get the money in your account, the cheque may have not yet been cleared. Therefore, although you may make use of the money, it could be withdrawn from your account later, should there be any problem with the cheque.
Uncertainty with cheques issued abroad is even greater, as the return periods vary depending on the country.
According to best banking practices, total transparency is therefore essential so that customers handing cheques to their banks to be collected and paid into their accounts, may know the bank’s compromise and the conditions for the cheque’s availability, just by reading the receipt.
Therefore, upon handing a cheque to your bank, they should explicitly inform you about:
- The actions to be taken for its collection: if you are allowed to make use of the sum deposited in your account, you should be clearly warned that such deposit will be subject to the corresponding payment verification, and will not be confirmed until it has actually been cleared, bearing also in mind that you will have to return the deposited amount if the cheque is unpaid or return. Your bank should also inform you in the event the sum of the cheque is not available until it has been effectively collected.
- The fees or expenses that may be charged, if any, and the exact amount: the most common ones are those charged for the necessary procedures taken to collect the cheque and those charged when the cheque is unpaid and therefore returned.
- The maximum time that should elapse from the moment you hand the cheque to the bank until it’s effectively collected and the amount in your account is confirmed. If the cheque has been issued abroad, as in our case, and the exact date cannot be determined, your bank must inform you about this circumstance regardless of whether you will have the money available or not. The bank should also inform you of an estimate of how long its effective collection will take.
And finally, about the possibilities offered by your bank for a new collection of the cheque should it be unpaid and returned.
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