How does cashing a cheque work

But many UK banks now use cheque imaging which speeds up the process a lot. It means that the need to move pieces of paper around has been removed. Cheques can now clear as quickly as by the day after they were banked.

But, depending on how tech-savvy you are and who you bank with, you might not need to make the trip. With the introduction of new technology, many people can pay in cheques using their smart device. They can just take a photo of the cheque and upload it to an app. A lot of banks now also have paying-in machines that electronically read the data of your cheque and hold it for processing using cheque imaging.

So, even if you do go to your bank to pay it in, it should clear more quickly with this option. When you youse cheque cashing service, the cheque can be paid out in cash, so this removes the need for a bank account. Most of these services will charge a fee. Some pay charge a flat fee if it's below a certain amount, or a given percentage of the amount cashed if it is above a certain threshold.

The other option is to move money using a bank transfer. You can move money between people and companies this way. Bank transfers can be set up on a mobile phone or computer using online banking or Paym. You just need the recipient's mobile number to send money through Paym. Or you need the payee's name, sort code and account number to use online banking.

Payments usually arrive in less than 2 hours and can be spent immediately. You can compare bank accounts with online banking to find one with all the features you need. Yes, instead of posting a cheque you could use an international money transfer. This lets you send money in your bank account to a bank account held in another country, either in your own name or someone else's.

New bank accounts are offered all the time, so compare all of the best options to make sure you get the right one for you. Bank account for teenagers. Bank accounts for bad credit. Bank accounts with overdrafts. Business Bank account. Charity bank accounts. Current accounts. Many banks prefer that you have your bank debit card with you as well. If you do not have your debit card, you may be required to fill in additional forms to cash your cheque. Cash the cheque at an ATM. The funds are usually available immediately.

In most cases, you will need your bank debit card to deposit or cash a cheque at an ATM. The debit card identifies your account so that you can deposit or cash your cheque. Make sure you endorse the cheque before inserting it into the ATM. Deposit the cheque electronically. Many banks now allow you to deposit cheques into your account using a smartphone. Make sure to follow all the directions in the app.

Take a clear, well-lighted photograph of the front and back sides of the cheque. Method 3. Visit the bank that issued the cheque. You can find the name of the bank by looking at the front of the cheque. Most banks are required to cash cheques that are drawn on accounts at their bank if there are sufficient funds in that account. Be aware that if the account the cheque is written on does not have sufficient funds to cover the cheque, the bank is not required to cash it.

You can find out online if you live in a state where this applies. Use a retailer to cash the cheque. Some grocery stores and a number of large retailers will cash certain kinds of cheques that they believe are reliable. For instance, they will cash payroll cheques or government cheques but not personal cheques cheques written by individuals drawn from their personal accounts.

Merchants often charge small fees for cashing a cheque for you. They will only cash payroll, government, and tax cheques. Use a prepaid card. Many financial institutions now offer prepaid cards to people without bank accounts. If you have a prepaid card, you will usually be able to deposit cheques at select ATMs. You may be charged a fee to deposit and withdraw funds, depending on the card. You can deposit cheques and withdraw money at any ATM that accepts Visa debit cards.

Chase offers a prepaid card that allows you to deposit a cheque at any Chase ATM. Use a cheque-cashing service. There are many cheque-cashing stores and services that will cash cheques for a percentage of the amount. These should usually be reserved as a last resort, as their fees tend to be quite high. Most retailers will not. Endorse the cheque to a trusted proxy. If you do not have a bank account and have someone you absolutely trust, you can make over the cheque to them.

They can then cash the cheque with their bank and give you the money. Sign your name. In some cases, you may also be required to initial near the written and numerical amounts of the cheque. Never ask someone you do not know intimately to cash a cheque for you. Never cash a cheque for someone you do not know and trust extremely well.

Lewis Business Advisor. As the payee, you cannot legally change the currency denoted on a check. You have two choices: 1 Return the check to its original maker and request a new one in Rand, or 2 Cash the check in dollars and convert thee proceeds into Rand. Not Helpful 3 Helpful Effectively, an individual cashing a cheque made to a company is a third party cheque I'm assuming the company has endorsed the cheque to you. Most banks do not accept third party checks for cash since they cannot ensure that the signature of the original maker is valid.

However, your bank may allow you to deposit the check and hold the funds until the cheque clears. You might consider returning the cheque to your company for deposit into their account and getting a company check made payable to you. Not Helpful 3 Helpful 5. Include your email address to get a message when this question is answered. Consider depositing a cheque you receive rather than cashing them.

Your bank will place the funds in your account, then collect the funds from the bank from which the cheque is drawn. You may have to wait a few days to spend the money because the bank will make sure the cheques are honored by the other banks.

This is free of charge if you cash it at the branch where the drawer holds his or her account. If you cash it at another branch, you may be charged for checking the balance and signature. By depositing it in an account in your name at the same bank as is due to pay the cheque drawee.

This is also free. By depositing it in an account at a bank other than that paying the cheque. A fee will normally be charged.