Foreign currency cheque

liviboy

Hi there,

I've just deposited a USD cheque into my Nationwide account...I've previously done this on a number of occasions...

However, my question is, does anybody know the value-limit for a "negotiation" credit as opposed to a "collection"?

I'm not in a hurry for the funds I'm just interested to know. Previously all cheques were below $500 so always negotiated but this cheque is for a few thousand $$$ in re-payment so more likely to go via collection.

Cheers for now

Caladan

Can't speak for Nationwide, but in my own experience there are several things that are taken into account, a value-limit (although this may change depending on the customer/drawing bank/drawing country/recent experiences) and also if there are any potential concerns over the cheque.

So they probably do have a value-limit, say £1k sterling equivalent for example, but it may not be the only reason your cheque was collected instead of negotiated.

By the way, negotiated cheques are a massive risk to the customer and/or the bank in comparison to collected, in some cases they can be recalled over a year later (for the customer) and several years (for the bank). This makes collection safer for everyone involved.

BaxUk

If it's for a few thousand, pretty sure this will go by Collection route, as Caladan said, just the risk factor really, a pain, but as said, best for both parties in the long run.

liviboy

Thanks both of you. I presumed this would go via Collection...roll on the 8 week wait...

It's still a pain that bits of paper need to be physically flown forwards and backwards...you'd think in this day and age they could accept a scan, call the customer to confirm the cheque is genuine and then send the funds...surely better all round. In the event of a dispute the actual paper would then be sent...

BaxUk

liviboy wrote: »

Thanks both of you. I presumed this would go via Collection...roll on the 8 week wait...

It's still a pain that bits of paper need to be physically flown forwards and backwards...you'd think in this day and age they could accept a scan, call the customer to confirm the cheque is genuine and then send the funds...surely better all round. In the event of a dispute the actual paper would then be sent...

The process is completely outdated I totally agree, however, in fairness, if people continue to want to use cheques/foreign cheques when there are faster options out there electronically, the banks are in a difficult position.

Best approach is to use the more modern and efficient methods available

liviboy

BaxUk wrote: »

The process is completely outdated I totally agree, however, in fairness, if people continue to want to use cheques/foreign cheques when there are faster options out there electronically, the banks are in a difficult position.

Best approach is to use the more modern and efficient methods available

Not really my choice how I was paid back unfortunately...the cheque is from a very small credit union whose fees to send an international transfer far outweigh the fees and exchange rate I pay to receive the cheque...the mind boggles with that one!