Can a cheque guarantee card be declined?

sandy_smith_2

Hi,

In some serious money troubles until payday (thursday). Anyway ive maxed my overdraft limit and need to make a few essential purchases so thought I could do so paying by cheque (and obv the guarantee card). When making the purchase the funds wont actually be in my account but obviously by the time the cheque clears there will be enough funds.

Will the cheque go through at checkout??

I appreciate this is a very short term and careless way of handling my finances but my situation means i have no choice.

So yeah would welcome any views on this topic!

Many thanks in advance for any help and advice!

zincoxide

Yes - it will work, although be very careful, if the cheque gets to your bank before your money does then you'll have some fees to pay!!

Good thing is, most retailers only bank 3 times a week, so it should take around 4 to 5 days for the money to come off your account.

I'd highly recommend that you download the budget spreadsheet found on this website for next month!!

sandy_smith_2

Thanks for your reply! Yep I think I will - time to get diciplined and get my finances in order!

Thanks again...

S

Mikeyorks

Yes, the cheque will go through - as the first check on funds is when it hits your account.

But I would do the shopping as late as possible in order the cheque doesn't leave the retailer until the following day.

sandy_smith_2

Thanks for the reply.

Sorry one more question.

Obviously small retailers physically write the cheque card number on the back of the cheque however most places seem to swipe your card. When swiping is this simply to save time writing the card number on (As i presume it will be printed) or are some checks carried out re the funds available in the account.

Thanks again..

S

PS- obviously the sums involved are BELOW the 100 pounds guaranteed by my card.

zincoxide

No - they do not check any details when they swipe the card, it is purely to capture the card details which tend to be printed on the back.

Lucymiss

:j In respect of paying using a cheque guarantee card, I know at Tesco there is a notice that says, they use Transfax to guarantee cheques. I believe this is part of Equifax the credit reference agency. So just be careful as I think they charge you if it bounces as well as your bank! I know Argos, Wilkinsons use this service too.

UKTigerlily

I work in retail & we swipe the card, I know it tells us if a card needs to be retained (Is reported stolen, misused etc) so maybe that's why, as it wouldn't be able to tell us else, but yes it should go through no worries

someone

If you do this and your cheque does bouce then Transcash will blacklist your acount making it very hard to pay by cheque again at other shops that use the Transcash.

Also I think it is unlawful to write a cheque for goods without the funds been in your acount.

M_Thomson

someone wrote:

If you do this and your cheque does bouce then Transcash will blacklist your acount making it very hard to pay by cheque again at other shops that use the Transcash.

Also I think it is unlawful to write a cheque for goods without the funds been in your acount.

Totally agree with you someone, I can't believe that nobody said this earlier on in the thread.

Mikeyorks

Transcash is a payment method owned by Alliance & Leicester (Girobank) - it's particularly used by Post Office if you pay bills through them. It's a paper based system and has nothing (directly) to do with guaranteeing cheques Although I suppose it has an indirect association if you pay the bill by cheque. But it has nothing whatsoever to do with a credit agency.

And I'm afraid it is not 'unlawful' to write a cheque without the funds in your account. Lots of 'law abiding' people write cheques either in anticipation (as in this case) of the funds being there when the cheque arrives - or move money from better interest accounts to meet the same objective.