Bankers drafts??

pcyam

Different bank different procedures, Abbey use to pay bankers drafts and even their counter cheques in as cleared items, but since there has been a number of fraud they have stopped doing this and have told staff to pay in as cheques to go through the clearing system, but if you call up with the cheque/draft number staff can check if its geniuine. For drafts there is a telephone number on it but in case of fake cheques/drafts I would advise people to call their call centre or pop into any local branch (For any bank/building society)

Not sure if people are aware of this but there is no difference for asking for a counter cheque/bankers draft the only difference is the cheque looks differently, one says counter chq and the other says draft, its because they withdraw via the same system, whilst a counter cheque is free theres a £10 fee for drafts. But then I guess people accepting them dont know this.

amandathepanda

There is a difference between a counter cheque and a bankers draft. A counter cheque is issued with the customers details written on the cheque and the customers account is not debited until the cheque comes throught the clearing system, so in effect the could empty their account and there would be no funds available when the cheque is presented for payment. When a bankers draft is issued, it is in effect bought from the bank, ie their account is debited immediately to pay for the draft. That is how the system works in my bank anyway.

gingerdad

Where do you stand if a draft/cheque turns out to be stolen/fordged, i have taken one for a car after checking with the b/s nationwide and visiting the buyers house, now worrying, but was told by a member of staff at barclays on friday, that "it is treated just as cash".......

GD

pcyam

amandathepanda wrote:

There is a difference between a counter cheque and a bankers draft. A counter cheque is issued with the customers details written on the cheque and the customers account is not debited until the cheque comes throught the clearing system, so in effect the could empty their account and there would be no funds available when the cheque is presented for payment. When a bankers draft is issued, it is in effect bought from the bank, ie their account is debited immediately to pay for the draft. That is how the system works in my bank anyway.

With the Abbey, we take the money out of the customers account as soon as they have signed for the counter cheque/bankers draft, which is why we have in the past and in some circumstances (even though we have been told not to) pay it in as a cleared item. When we withdraw the cheque/draft we use the same system hence the computer cant tell the difference between the two.

But different banks have different systems.

jonesMUFCforever

amandathepanda wrote:

There is a difference between a counter cheque and a bankers draft. A counter cheque is issued with the customers details written on the cheque and the customers account is not debited until the cheque comes throught the clearing system, so in effect the could empty their account and there would be no funds available when the cheque is presented for payment. When a bankers draft is issued, it is in effect bought from the bank, ie their account is debited immediately to pay for the draft. That is how the system works in my bank anyway.

Are you sure that you are not confusing a counter cheque with a temporary cheque. Years ago if you ran out of cheques and had not received a new one in time your bank would write out a temporary book of about ten cheques. In this case you would be correct in saying that one of those cheques would only be paid for if used (just like any proper cheque book) but a counter cheque is paid for when you request it.

amandathepanda

We only issue counter cheques when a customer has either run out of cheques, or had their books lost or stolen. On other occassions we issue bankers drafts which are issued for a fee. It just goes to show the difference between banks.