Do companys/shops/local authorities log who writes a cheque before banking it

lottieru

just wondering if company/local authrortiys and shops log who writes a cheque before banking it?

OliveOyl_2

It may depend on paying in slips
For our business account with the Co-Operative we had to note the following:
Name of payee
Cheque number
Account number
for every single cheque we paid in!

OTOH, I was once able to tell a customer which of his accounts had paid the bill when his records were adrift :rotfl:

But all the paying in slips I have seen have had a space to note the payee.

dzug1

Well put it this way - they ought to. Those I've had any dealings with do

In reality I suspect the level of detail varies

glider3560

My old college had a cheque reader in their finance department. Whenever you wrote them a cheque, they'd pop it in the reader and print you a receipt which showed the cheque number, account number and sort code. I assume the same details were recorded on their computer system.

One of these:

EarthBoy

OliveOyl wrote: »

But all the paying in slips I have seen have had a space to note the payee.

They would do. The payee is the person or company being paid, not the person or company the cheque is from. They would be the payer, i.e. the one doing the paying.

The OP was asking about the person who writes out the cheque, which would normally be the payer, or someone on behalf of the payer (if it's a company). Small companies might well keep a record of who the cheques are from, but I doubt that large companies would do so. When I worked for a large energy supplier we received far too many cheques to record who they were from. We weren't bothered who paid the bills, as long as somebody did.

Mark_In_Hampshire

The reverse of some cheques used to be pre-printed with a tick box and caption which said "customer signed cheque in front of me".

This is because if you pay with a cheque and guarantee card, the cheque is only guaranteed if signed in front of the recipient. This helps prevent fraud.

So in that context the payee knows that it really was the account holder, e.g. the person named on the front, or if joint holders, one of them (but not which)

However as above, payees don't care who writes the cheque as long as they get the money, responsibility for paying remains with the account holder (the account with the payee, not the bank) so if a cheque bounces then who wrote it is of no significance, the customer of the company remains liable to pay anyway.

dzug1

Mark_In_Hampshire wrote: »

However as above, payees don't care who writes the cheque as long as they get the money, responsibility for paying remains with the account holder (the account with the payee, not the bank) so if a cheque bounces then who wrote it is of no significance, the customer of the company remains liable to pay anyway.

But if they have recorded insufficient detail they won't know which customer's account to debit for the bounced cheque.

Mark_In_Hampshire

Normally when you send a cheque to a supplier you write the account number on the back - if you don't then they don't know who to credit in the first place.

As far as retail goes, the retailer just has to lose the money - even if they remember the sale to you, and what you look like, they can't very well pursue you if they don't know who you are beyond the name on the cheque which is why retailers will insist on the guarantee card.

EarthBoy

dzug1 wrote: »

But if they have recorded insufficient detail they won't know which customer's account to debit for the bounced cheque.

They write the account or invoice no. that's being paid on the back of the cheque. If the cheque bounces you get the cheque back, -or probably just a photocopy of it these days, but either way you could see which account no. or invoice it related to and then debit that customer's account.

lottieru

see i work in a local school and i have cheques to bank but no invoice to put them against so just write on my paper work that i have a cheque. I then send it off via Kings to the local authrity fund. Was wondering if at the other end they log the name and the amount from each cheque