OT Bank Cheques

Not sure that is quite right oldpop. I've only been a bank employee for 38 years, so I spose I could be wrong. ;-)

The only reason a Bank Cheque can be stopped is if it was a fraud or if it's been reported stolen etc.

If we issue a Bank Cheque and subsequently find that the client who purchased it didn't have enough funds in the account or if we allowed THEM to purchase the cheque using uncleared funds (which subsequently proved to be dishonoured etc), then the issuing bank has to wear that.

If you purchase a bank cheque from a bank with the intent of, say, purchasing a camper trailer and subsequently find that the camper trailer isn't what you thought it was going to be, then you cannot ask the issuing bank to place a STOP on that cheque. Once you hand that cheque over, you have effectively handed the payee of the cheque a clear instrument.

Now, Brew, your bank/credit union will not know whether the bank cheque is a fraud etc; so they will still require you to allow the usual 3 days clearance time....sorry mate!

Cheers

Roachie

Dead right Oldpop
I used one yesterday but only for security reasons as I did not like carrying several grand cash in my sky rocket. My supplier was cool about the cheque and released the goods secure in the knowledge he would "Eventually" get his money from St George.

I was clearly told by St George that they DO NOT clear any quicker UNLESS you pay a goodly fee for it.

No such thing as a free lunch nowadays.
Colin.

Funny thing is that the biggest ticket item most of us will ever buy is a house. Now, how do you suppose property settlements take place?

Not sure?

Well, it's via the good ol' fashioned Bank Cheque.

Big difference is that they are purchased by solicitors/conveyancers and are considered as good as cash at the time of settlement..... "Settlement" is that magic time when the players get together and exchange Bank Cheques for Title Deeds; no room here for waiting 3 days for clearance.

So, it all comes down to the credibility of the client who is depositing the Bank Cheque.

Brew, I know all my clients very well and I don't invoke the 3 day clearance time on ANY of the cheques they deposit (IE: regardless of whether they deposit personal cheques or bank cheques). Reason? I know they are "good for recourse". If I have a client who accepts a cheque from one of their customers in good faith, which subsequently bounces, I know that they will be able to cover the cheque from their normal trading cycle. HOWEVER; if I have a newly established client who operates as say a cafe and they bring in a cheque for $50K and say that they want to draw against the funds staright away.....different story!!! I may be green, but I'm not cabbage-looking!!!!! hahaha

You are dead right OldPop. Not many people know but there is plenty of history where banks have not honoured there own chqs ! They are judge and jury and you will have a hard job getting them to see things your way. First rule of business is to never have your personal accounts at the same bank as your business account to stop them dipping into one to pay loan or OD on the other.

This is an NAB Moonta Bank Cheque lol. So not far from home.:)

LOL. I paid for my last one on Mastercard and then transferred the money back afterwards.

Just pruchased a new van for (was going to pay deposit of 12k.... and lease the rest bank wanted some stupid interest rate cos it wasnt over 15000 or something so i used visa for the whole lot and made em wait 55days for their $$$...

banks are just the biggest crooks

Sorry oldpop, but if the cheque was reported lost or stolen (by the bloke who bought it from his bank), then it wouldn't take Einstein to establish that the cheque had been deposited by the payee.

The purchaser could then be charged by the Police for making a false statement. Serious chit!!!!

Roachie
Sorry but banks can not be trusted
only deal in 3 forms of currency
CASH cash or Cash

Regards
Oldpop

Jeez oldpop, you're a hard bloke to convince.

I'd like to think that I have a reasonable reputation as a banker. However, if I'm reading you correctly, it's the organisation/s you don't trust, not the individuals that handle the day to day transactions.

Maybe you've had a bad experience at one time or another. I'll ask a rhetorical question (you don't have to answer): Have you ever borrowed money from a bank? If so, did they try to rip you off? If so, did you try to stop making the repayments on the basis that they tried to rip you off?

I love it when I see on ACA or TT, bleating folks who claim they're losing their house because the nasty ol' bank is kicking them out!!! hahahaha If only we could tell our side of the story!! (but privacy laws prevent this until and unless the whole thing ends up in court).

If I could speak to these good folk who berate the banks for the situation they find themselves in, I would ask them to show me the banker who "forced" them to take the loan out....who was it that held a gun to their head and forced them to borrow hundreds of $'000s to buy that house etc.

Of course there is no such person. People seek loans for their own purposes and then when their circumstances change (lose their job etc), they blame the bank cos they can't afford the payments anymore. Logic would dictate that they should fess-up to their situation and sell the bloody house while they still have some modicum of equity and dignity. There is no shame in going back to renting. Hell, I've been working all these years and I don't own a house. Instead, I've been poking a few odd $$ into super so that I can buy a house outright when i retire.

Rant over (for the time being!!! hahahaha)

Roachie
Had one bad deal
Cheque from customer from same bank and branch as mine had to wait 4 working days for it to cleared

Sorry dont like banks
regards
Oldpop

No worries mate.....I can see why you'd be sooooo bitter if you were kept waiting 4 days for a cheque to clear.

The 3 day clearance standard has only been the accepted norm for a few years. It used to be 10 days when I joined the outfit in 1970.....cheques had to physically go (via the postal system) to their place of issue and that could take ages......

A quicker way may have been to have your bank credit the funds direct to the vendor's bank account with note that funds are clear funds.

Blank Bank cheques have been stolen , or cheques issued have been obtained through fraudulent means, which is probably why the 3 day rule.

Bank to bank transactions are through "bank warrants" bank to customer transaction is through bank cheques.


Pedro

Yeah but if a money order is for some obscene amount then you probably walk out of a PO with a cheque! Either way at least you know it's good.

All I know is a Bank Cheque pretty much guarantees that you'll get the money once it clears (unless it's some fraud), whereas a personal cheque is more risky (they may not have the funds in the account).

Paypal is great apart from the fees, and it acutally can take as long for the funds to clear as a cheque or bank deposit.
The good old on line bank transfer is probably the best, it's free, but as a buyer you are taking a risk if you're paying for the item site unseen prior to pick up.