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cheque guarantee problem???

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  • withabix
    withabix Posts: 9,508 Forumite
    Has anyone found anywhere that you can use contactless cards? (I suspect there are some in London Village, but where else???)
    British Ex-pat in British Columbia!
  • zppp
    zppp Posts: 2,476 Forumite
    edited 22 October 2010 at 3:09PM
    withabix wrote: »
    Has anyone found anywhere that you can use contactless cards? (I suspect there are some in London Village, but where else???)

    Only places I am aware of so far (ut then I'm not well travelled) is Little Chef and an independent electrical store I visited that had a Barclays contactless terminal. (i did think how random lol) I imagine new retailers to Barclays signing up to them may get these terminals.

    Here is a website that will locate retailers for you:

    http://www.visa.co.uk/paywave/default.aspx
    Best Regards

    zppp :)

  • withabix wrote: »
    Also, IIRC, the guarantee limit probably doesn't have to be written on the back of the cheque. The signature needs to match the bank's records, the card must not have expired.

    The cheque must not have been more than the guarantee limit on the card (£50/£100/£250). Writing the guarantee card limit on the back fo the cheque is a physical test that you have checked the card limit, although I don't believe that is compulsory.
    Indeed it is not compulsory. It is not in the conditions of use.
    Whilst not directly relevant, Barclays personal terms and conditions include the following:
    4.26 If you have a card with a cheque guarantee logo on it and the same sort code as your accounts, you can use it for as long as the cheque guarantee scheme exists (it is expected to end on 30 June 2011); or we tell you otherwise to guarantee cheques on Barclays accounts in your name. The following conditions will apply:
    (a) You may only use one guaranteed cheque to pay for any one item. The cheque will not be guaranteed if it is for more than the cheque guarantee limit shown on the card.
    (b) You must not write a guaranteed cheque for more than the Funds Available in your cheque account.
    (c) You cannot guarantee cheques outside the United Kingdom, the Channel Islands, Isle of Man and Gibraltar.
    As we are required to pay all cheques that meet these conditions, you risk making a payment twice if you issue a replacement for a guaranteed cheque without having the original returned to you.
    The statement in bold is over-simplistic and of course aimed at the customer writing out the cheque. It is broadly correct though. I'm surprised RBOS made the phone call to Barclays, but given that they did I would have hoped that they would have challenged the "new" reason Barclays gave.
  • Toe-Jam
    Toe-Jam Posts: 1,554 Forumite
    jen245 wrote: »
    Got my new debit card from Natwest at the end of August with a £250 cheque guarantee, so not all banks have stopped issuing cheque guarantee cards, although as its not going to be in effect from June next year, they should really stop issuing them now

    RBS group are phasing out from Jan 2011, any cards with the facility replaced after that will not have it, but if you have the facility now and replace your card it will have it again.
  • The cheques was not for encashment i.e.cash, also only one cheque was issued for services. Latest news-Barclays have not written 'problem with number' or anything like that on the cheque, just 'refer to drawer. How in an emergency, for example if card machine is broken can we take payment if not near cash machine? RBOS are tackling Barclays about this cheque and the reason for refusal to pay. ps have asked solicitor and there is no need to put guarantee limit on back of cheque, as far as I know a cheque guarantee card is just that, if it is used and taken properly and the bank can't refuse to honour it's obligation. Otherwise why call it a guarantee card?
  • zppp
    zppp Posts: 2,476 Forumite
    edited 22 October 2010 at 6:40PM
    jap11 wrote: »
    The cheques was not for encashment i.e.cash, also only one cheque was issued for services. Latest news-Barclays have not written 'problem with number' or anything like that on the cheque, just 'refer to drawer. How in an emergency, for example if card machine is broken can we take payment if not near cash machine? RBOS are tackling Barclays about this cheque and the reason for refusal to pay. ps have asked solicitor and there is no need to put guarantee limit on back of cheque, as far as I know a cheque guarantee card is just that, if it is used and taken properly and the bank can't refuse to honour it's obligation. Otherwise why call it a guarantee card?

    Have you read my link?

    It may be that they didn't write out the cheque to you for a encashment. They may have been an handed you the cheque, gone to a cheque encasher and written 2 cheques to them with the same dates. This means that all cheques guaranteed are nul.

    If you would like a full explanation from Barclays, I suggest you write to them. However I suspect it will be a response of 'the cheque in question was not written in accordance with the cheque guarantee sceheme rules' type of response. The guarantee scheme only operates if the cheque is written out in accordance with the guarantee scheme. Anything different does not fall under the guarantee scheme.

    With regards to what you are supposed to do if the power goes down and you cannot accept POS payments, I would say that not many people carry a cheque book around with them any more, especially since supermarkets stopped accepting cheques. There are offline solutions if this happens allowing you to continue accepting cards, which involves taking an imprint of the card, and telephoning for authorisation. I suggest you speak with your merchant about this.
    Best Regards

    zppp :)

  • System
    System Posts: 178,340 Community Admin
    10,000 Posts Photogenic Name Dropper
    zppp wrote: »
    It may be that they didn't write out the cheque to you for a encashment. They may have been an handed you the cheque, gone to a cheque encasher and written 2 cheques to them with the same dates. This means that all cheques guaranteed are nul.

    What a load of rubbish !

    It's largely irrelevant to the original poster what the cheque drawer did before or after.

    As long as
    • the name, the sort code & signature all match.
    • the cheque card number was written on the back of the cheque by you.
    • the cheque is for below (or equal to) the guarantee limit
    then the bank HAS to pay it.

    Sounds like Barclays are trying it on ;)
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Re people not paying by cheque anymore it is quite surprising how many people carry a single cheque around with them in their wallet or purse as a solution to card problems and so they don't have to use cash. Very often the machine will reject cards for no reason , in fact we went through a stage when cards had to be put through 3 times before working. I still don't understand how a retailer can accept a cheque with a guarantee card and have the trouble I am having. It has nothing to do with me what else the person has done that day with his cheques, my only concern is complying with the conditions of cheque acceptance with a guarantee card. We dont go following people around all day watching to see what they are doing with their cards and making sure they are using them properly do we? A cheque guarantee is exactly that and if it isn't then it should be printed on the card, eg: we will guarantee cheques up to £100 or whatever but only if the person hasn't gone elsewhere issuing multiple cheques and if they have then we won't honour your cheque!. If this is the case then no-one would be safe taking cheques would they?
  • zppp
    zppp Posts: 2,476 Forumite
    Heng_Leng wrote: »
    What a load of rubbish !

    It's largely irrelevant to the original poster what the cheque drawer did before or after.

    As long as
    • the name, the sort code & signature all match.
    • the cheque card number was written on the back of the cheque by you.
    • the cheque is for below (or equal to) the guarantee limit
    then the bank HAS to pay it.

    Sounds like Barclays are trying it on ;)

    Hang Leng, what I have said is supported by the above link. Not only that this is what the CAB say:
    According to the cheque guarantee scheme the bank will guarantee your cheque providing all the following conditions are met:
    • The cheque does not exceed the limit on the cheque guarantee card; and
    • The signature on the cheque matches the specimen on the card and was written in the presence of The person receiving the cheque; and
    • The person accepting the cheque writes the card number on the back of it; and
    • The cheque guarantee card has not expired; and
    • The cheque is not drawn on the account of a limited company; and
    • Only one cheque is used in the transaction.
    Your bank or building society is contractually bound to honour all cheques, provided that sufficient funds are in your account, or if the cheque was within the limits of your agreed overdraft. So, even if the cheque was over guarantee, but there was enough money in the account, it should have been honoured.
    In this situation, contact your bank to find out why they failed to honour the cheque. Without this information, it will be difficult to argue with the music store. If there has been an error on the part of the bank, they would be expected to pay the music store any compensation for the inconvenience and expense caused in the cheque being returned.
    If, for some reason, the bank were right to bounce your cheque, you could return to the branch of the music store and look for the agency's notice. If the notice is not prominent then you may be able to argue a case for not paying the £58. Just be aware that it may cost you more in the long run if the dispute then went to court.
    Best Regards

    zppp :)

  • zppp
    zppp Posts: 2,476 Forumite
    jap11 wrote: »
    Re people not paying by cheque anymore it is quite surprising how many people carry a single cheque around with them in their wallet or purse as a solution to card problems and so they don't have to use cash. Very often the machine will reject cards for no reason , in fact we went through a stage when cards had to be put through 3 times before working.

    So what are you going to do in the middle of net year? No guarantee scheme will be in operation then. (before I get shot down, Leeds BS may keep theirs but that is a matter of opinion ;)) The only time I would use a CGC is for my Chinese takeaway, and they have just stopped accepting them. Most major retailers have stopped usage. That is unfortunately the way it has gone.
    jap11 wrote: »
    I still don't understand how a retailer can accept a cheque with a guarantee card and have the trouble I am having.
    jap11 wrote: »
    It has nothing to do with me what else the person has done that day with his cheques, my only concern is complying with the conditions of cheque acceptance with a guarantee card.

    It does when you have been defrauded by someone and a cheque has bounced. Perhaps you should stop accepting them if you feel they are of too high risk.
    jap11 wrote: »
    We dont go following people around all day watching to see what they are doing with their cards and making sure they are using them properly do we?

    Some retailers have the same problems with cards and chargebacks. Unfortunately there are some unscrupulous people around, know how to play the system and get away with it. Whilst I sympathise, if I was you, I would be accepting only card payments or cash.
    jap11 wrote: »
    A cheque guarantee is exactly that and if it isn't then it should be printed on the card, eg: we will guarantee cheques up to £100 or whatever but only if the person hasn't gone elsewhere issuing multiple cheques and if they have then we won't honour your cheque!.

    Where does it say that on the card? It has a hologram of the amount and that is it. The terms are available from APACS, as the cheque will go through the clearing system.
    jap11 wrote: »
    If this is the case then no-one would be safe taking cheques would they?

    Agreed, but the Cheque Guarantee Scheme has rules. If they are breached, the cheque can be dishonoured. I didn't make the rules, that remit falls within the UK Payments Council so please don't have a go at me.

    Roll on the end of the CGC.
    Best Regards

    zppp :)

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