Cheque Cashing

You have two options when it comes to cashing a cheque. You might take the cheque directly to your bank, and request that the funds be transferred. In most banks you will find specialised machines which will automate the process.

It will often take a few days for the cheque to clear. If this is unacceptable, then many banks will accelerate the process for a small fee.

Another option comes in the form of a specialised retailer. These tend to be pawnbrokers, like Cash Generator and Cash Converter. In this case, you’re effectively borrowing the funds from them for the few days it takes for the cheque to clear, and they are charging you a small amount upfront.

This is a means of reading a cheque using your mobile phone. Rather than visiting a branch, you are using the secure app on your phone to read the cheque and make the deposit.

A very small minority of cheques will bounce. This can happen for a range of reasons. In some cases, the paying account might not have enough money to fulfil the debt. In others, the bank might have spotted a potential fraud, or a mistake in filling in the cheque.

In cases where there was a problem with the first cheque you issued, then you might be asked to write another. To make sure that the first cheque is never cashed, you might place a stop on it with your bank. Doing this will often incur a fee, so it might not be worthwhile for very small transactions.

There is no strict expiry date on a cheque. However, it is common practice for most banks to bounce cheques that were written more than six months previously. This helps to protect the issuer. You can request a replacement cheque if you have gone beyond this limit. In the event of a dispute, a cheque is a way of proving that the debt exists – but the statute of limitations means that you have just six months to take legal action to prove this.

You might be thinking: this is all very well and good, but where can I cash cheques near me? The answer comes from the Yell.com listings. Use the search function to find cheque cashing services near you. Specify your location either by typing it in, or by using the location of your device.

The extra cross on a cheque makes it slightly more secure, in that it forces the person cashing it to pay it into the account that bears the exact same name as the one specified on the ‘payee’ line. Crossed cheques cannot be cashed.

Strictly speaking, you have the legal right to uncross a cheque you have written by writing ‘crossing cancelled’ over the crossing before signing it – but in doing so you expose yourself to potential fraud. In these cases, it is a better idea to write a new cheque.