Payment by Credit Card Cheque - Need Advice

I have recently been paid for an item won by cheque and told the purchaser that I would not send the item (which is worth nearly £200) until the cheque cleared.

I have just received the cheque today and noticed that it is a credit card cheque, although it is in the same name as the person I have been corresponding with.

Has anyone any experience of credit card cheques (I usually shred the ones I get sent by my CC company), are they safer or more risky than cheques from a current account and how long do they take to clear before there is no chance of them 'bouncing'.

Comments

  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    Like any normal cheque, under new rules they should clear without any comeback after 6 working days.

    They might actually be a bit safer than normal cheques because customers can't usually put a stop on them, but don't release item until cheque clears as it could be stolen, a fake, etc.
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • dollywops
    dollywops Posts: 1,736 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Premier wrote: »
    Like any normal cheque, under new rules they should clear without any comeback after 6 working days.

    They might actually be a bit safer than normal cheques because customers can't usually put a stop on them, but don't release item until cheque clears as it could be stolen, a fake, etc.

    Personally I would ring your bank. I know, from personal experience, that a cheque can bounce even after it has cleared.
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    dollywops wrote: »
    Personally I would ring your bank. I know, from personal experience, that a cheque can bounce even after it has cleared.

    This certainly used to be the case but since the introduction in Nov 2007 of the so called 2-2-2 rule, once it's in for 6 days it's now guaranteed.

    http://news.bbc.co.uk/1/hi/business/7112829.stm


    2-2-2 rule

    2 days - credited to bank account (i.e. earn interest, if applicable)
    4 days - funds available for customer to draw against
    6 days - guaranteed no claim back
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • lightisfading
    lightisfading Posts: 1,288 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    dollywops wrote: »
    Personally I would ring your bank. I know, from personal experience, that a cheque can bounce even after it has cleared.

    A cheque is generally thought of as 'cleared' as soon as it's available to withdraw on - ie for HSBC thats 4 working days inc the day paid in. It can however come back as a 'late return' for a couple of days after that because the banking system still uses good ol snail mail. If that happens then the money will be taken back from your account. For ebay etc purposes (release of goods) you should really be waiting 6 working days as mentioned above.
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