Where to pay cheques in to my account?

nivea

jonesMUFCforever wrote: »

... if the cheque is returned unpaid who would they debit back? ...

Payments are cleared through the banking system.

i.e. it still relies on the receiving bank getting the cleared funds, just like if someone tries to pay a bill at a bank with a rubber cheque

Mistral001

Is this not something to do with arrangements between banks who after all are competitors to each other and competitors do not usually do favours for each other. You are really at the mercy of the bank that you try to lodge the cheque with as far as I can see.

EarthBoy

NatWest gives contradictory answers to this question:

Here they say no:

https://supportcentre.natwest.com/app/answers/list/kw/can%20i%20pay%20in%20at%20a%20different%20bank/search/1

Can I pay money into my account using a different bank?

It is not possible to pay cash or cheques into your account using a different brand...

But here they say yes:

http://www.natwestinternational.com/nw/offshore-banking/current-accounts/g4/common-questions.ashx#anotherBank

Can I pay into my current account at another bank?

Yes – you can pay cheques and cash into your NatWest account at any other bank, but some may charge you, so always ask first.

jonesMUFCforever

You can ask (that quote has been on every bank brochure for the last 20 years and is now out of date) but the answer IMO will always be NO.

jonesMUFCforever

nivea wrote: »

Payments are cleared through the banking system.

i.e. it still relies on the receiving bank getting the cleared funds, just like if someone tries to pay a bill at a bank with a rubber cheque

Please explain then how Lloyds would be able to debit a HSBC account if the cheque bounces?

This thread is getting silly now - if you want to pay yourself or anybody else at another bank you can do a faster payment which all banks allow. You don't need cheques.

Armorica

jonesMUFCforever wrote: »

You can ask (that quote has been on every bank brochure for the last 20 years and is now out of date) but the answer IMO will always be NO.

jonesMUFCforever wrote: »

Please explain then how Lloyds would be able to debit a HSBC account if the cheque bounces?

This thread is getting silly now - if you want to pay yourself or anybody else at another bank you can do a faster payment which all banks allow. You don't need cheques.

You're wrong.

Because the payments go through the clearing system...there is a special type of Bacs payment which works like a direct debit that would allow the paying bank to debit (from memory, usually a suspense account which is then passed onto the customer). Some unpaids are done via paper, where again, there is a debit payment that effects the transaction. They are known as CFU (claims for unpaid). A number of transaction include three banks not two and there are arrangements for transactions/advice to pass between collecting and beneficiary banks where there are not the same bank.

As others have, correctly, said - practice varies by collecting bank. It is possible to pay cheques in at a bank other than your own, but practice varies considerably.

You can see references to these practices on
page 12: http://www.lbagencybanking.com/_STERLING_AGENCY_MANUAL.pdf
http://www.raymondcoxqc.com/wp-content/uploads/2013/01/Read-The-Cheque-Clearing-System.pdf
http://www.chequeandcredit.co.uk/files/candc/press/procedures_for_collection_of_credits_for_accounts_at_other_banks.pdf

stclair

Yeah it's mad how in my humble opinion that this proccess between banks always seems a grey area.

Its just like NatWest won't take RBS cheques and vice versa without the paying in slip.

Aquamania

jonesMUFCforever wrote: »

Please explain then how Lloyds would be able to debit a HSBC account if the cheque bounces?....

In what circumstance do you think they would ever need to? :huh:

If the Lloyds cheque is not honoured by Lloyds, then HSBC will not receive the money and so HSBC will deduct the money from the HSBC account holder's account (assuming it was ever shown as credited)

System

All banks that are part of the BGC scheme CAN accept each others credits and debits (cheques).

They will normally refuse for non-customers.

They will normally accept cash tranactions from customers or those of paying into their group e.g. NatWest at RBS. They may not accept cheques (or restrict the value) due to fraud and the newish 2-4-6 clearing timeframe.

stclair wrote: »

Yeah it's mad how in my humble opinion that this proccess between banks always seems a grey area.

Its just like NatWest won't take RBS cheques and vice versa without the paying in slip.

jonesMUFCforever

Aquamania wrote: »

In what circumstance do you think they would ever need to? :huh:

If the Lloyds cheque is not honoured by Lloyds, then HSBC will not receive the money and so HSBC will deduct the money from the HSBC account holder's account (assuming it was ever shown as credited)

NO no no - the cheque will be stamped on the back by Lloyds and would be returned to Lloyds central returns unit who would try to debit the account it was credited to. When they can't do this it will be debited back to the Lloyds branch who accepted it and probably written off as a loss. The member of staff accepting it would probably be in deep do do for not following procedure .


However I do have a challenge for you - go into any Lloyds branch and prove to me that you paid in a cheque into a personal account of another bank.:)