Can a cheque guarantee card be declined?

Mikeyorks

urz100 wrote:

Yes this is true it against the law to write a cheque for which you do not have the funds available to honour the cheque when it was used.

Can you post some evidence of this, please?

Transcash will look to prosecute if the funds are not available when the cheque was used.
If they don't prosecute they will write to your bank advising them of the situation.

........ and this??

HKP_2

zincoxide wrote:

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.

Not strickly true my friend. The shop may have an agreement/system with Transax (or similar). The card details go 'online' to these companies and check your credit status. It doesnt check your balance, but checks for fraud and credit worthiness.
If you have a history of problems it is possible your cheque would be refused.
If your clean then it should be ok.

Hope this makes it clear how this works.

sunflower_2

last week a bank bounced "guaranteed" cheques of someone i know

one of them was because it was for a company that had already had a cheque cleared on the same day
apparently they only have to guarantee one cheque per company per day, as companies can only accept one cheque
this is supposedly to stop people writing cheques above their guarantee limit (e.g. having a cheque guarantee limit of £100 and writing 3 cheques to pay for something costing £300)

the other bounced cheque was because the shop assistant hadnt wrote the numbers clear enough on the back of the cheque

i would also be careful because your bank will see the date on the cheque and see that you didnt have enough in your account at the time
they could consider this mis-use of the card and take it off you?

i dont have a cheque guarantee card at the mo. and would love one - so to me it wouldnt be worth the risk

Mikeyorks

sunflower wrote:

apparently they only have to guarantee one cheque per company per day, as companies can only accept one cheque
this is supposedly to stop people writing cheques above their guarantee limit (e.g. having a cheque guarantee limit of £100 and writing 3 cheques to pay for something costing £300)

What you say there is quite true ......

i would also be careful because your bank will see the date on the cheque and see that you didnt have enough in your account at the time
they could consider this mis-use of the card and take it off you?

But the above .... is total fantasy

Lucymiss

HKP wrote:

Not strickly true my friend. The shop may have an agreement/system with Transax (or similar). The card details go 'online' to these companies and check your credit status. It doesnt check your balance, but checks for fraud and credit worthiness.
If you have a history of problems it is possible your cheque would be refused.
If your clean then it should be ok.

Hope this makes it clear how this works.

Not sure on this, I have a few defaults so I'd never get a cheque passed! But a person who works at my bank told me, Transax checks the card isn't stolen or has been STOPPED by the bank! The transax service is provided by Certegy.

sunflower_2

Mikeyorks wrote:

But the above .... is total fantasy

ooooo sorry !!!! :eek:

was only making a suggestion

soolin

A cheque guaranteed with a valid CGC cannot be bounced assuming all the terms and conditions about acceptable use are adhered to.

http://www.apacs.org.uk/payment_options/plastic_cards_7.html

Soo

Mikeyorks

sunflower wrote:

ooooo sorry !!!! :eek:

was only making a suggestion

Sorry - it didn't come across as an opinion - more a fact. And where people are posting for advice it can be a problem to them if they are mislead? However well - meaning;)

boo_star

Mikeyorks wrote:

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.

No, it isn't unlawful, but it is illegal to write a cheque that you know will not be honoured.

It's called fraud.

That does not include guaranteed cheques since they will always be honoured up the the guaranteed amount.

So using a cheque guarantee card to pay for your daily fag and beer supply just before you get paid is fine (if you're happy with the £20+ charge from the bank), but if you write a cheque on it's own, knowing you can't cough up the funds, thats fraud.

Tootsie_Roll

What's the difference between illegal and unlawful ?
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.
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One's where you break the law, the other's a sick bird Boom Boom

Actually there isn't a difference surely ?

Mikeyorks - don't know where you get your information from but with 20 years experience in the banking world I would say you are the one that is wrong. Firstly, as stated it is fraud to write a cheque knowing there are no funds in the account to pay it. Secondly, it is exactly this sort of behaviour that banks would class as misuse and they could withdraw the card.

Sunflower - you are spot on.