Some Info On Cheques Needed

Mikeyorks

Bit uncertain why Magneto decided to resurrect a thread last seen over a year ago? And then decide that the reduction in cheques is down to fraud - which is totally untrue.

Cheque fraud was at it's height in the early '90s .... which is why the Govt rushed (?) in the Cheques Act 1992. Since when plastic fraud has dramatically overtaken anything ever seen with cheques.

The reduction in cheques is a combination of customer convenience allied to the higher costs of retailer processing.

MarkyMarkD

Any wrote: »

Unless the merchant knows that the particular bank doesn't issue a guarantee card, then he accept the cheque.
If they didn't, then issuing a cheque book would be clearly pointless if you cannot quarantee it. No?

No. Most retailers will not accept an unguaranteed cheque in any circumstances.

I presume that the reason banks issue cheque books without guarantee cards is to reduce their fraud risk, not to increase it. People can still write cheques to friends/relatives/suppliers for large deals, but those recipients will only get the money if the customer actually has it (and therefore the cheque clears). It stops customers writing cheques when they don't have the funds available to get their shopping or whatever.

Richard019

Mikeyorks wrote: »

Bit uncertain why Magneto decided to resurrect a thread last seen over a year ago? And then decide that the reduction in cheques is down to fraud - which is totally untrue.

Cheque fraud was at it's height in the early '90s .... which is why the Govt rushed (?) in the Cheques Act 1992. Since when plastic fraud has dramatically overtaken anything ever seen with cheques.

The reduction in cheques is a combination of customer convenience allied to the higher costs of retailer processing.

The internal communication at my previous employer said that we were to stop accepting cheques as even when a guarantee card had been produced there had been a major rise in returned cheques. (ie card and book had been reported stolen so we weren't getting money)

WhySoHard_2

Deleted_User wrote: »

We had someone buy £100 worth of stuff on a business cheque last week then a few days later bought another £74 worth of stuff using a business cheque. The cheques cleared but the bank has told us not to accept any more cheques from the named business account. Got to be dodgy.

The bank phoned you? What sort of establishment do you have? Shop? I just can't quite imagine a bank phoning up Tesco's head office or something and saying don't take cheques from XX Limited

WhySoHard_2

Milarky wrote: »

I would point out that banks now make it a practice of issuing chequebooks with debit cards that are not cheque guarantee cards (for example, Lloyds) Cheque 'fraud' is thereby assisted by the banks themselves. Having the guarantee scheme being undermined by the banks in this way isn't going to help merchants continue to accept cheques now is it?

Lloyds doesn't give anyone cheque guarantee cards anymore?