M
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Mattonella Tile Studio
- Original Poster
- #2
You can't rely on a cheque having cleared for payment to be guaranteed. If you are sending out something of value, having been paid by cheque, the only way you can be safe is to ask your bank to present the cheque 'special presentation.' Your bank then sends it to the drawers bank, and they get a guaranteed answer.
Because of the nature of how cheque returns work it is possible due to postal delays, for your bank not to find out about the cheque not being honoured days after the cheque has cleared in your account.
Because of the nature of how cheque returns work it is possible due to postal delays, for your bank not to find out about the cheque not being honoured days after the cheque has cleared in your account.
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Well it's a problem because a cheque can still bounce long after the 3-5 days. I had one bounce 30 days after I paid it in and it was for a tenant's deposit cheque long after she moved in. The whole things turned into a nightmare but luckliy she left and we relet. Now I only take cleared funds for almost everything. And special clearance costs a lot so only useful for large amounts.
For an internet customer, if the amount is small I send the goods out and keep my fingers crossed. I actively discourage cheques though and for people with no bank account postal orders are a good option.
Best thing to do is to ring them and get the cheque guarantee number to put on the back.
For an internet customer, if the amount is small I send the goods out and keep my fingers crossed. I actively discourage cheques though and for people with no bank account postal orders are a good option.
Best thing to do is to ring them and get the cheque guarantee number to put on the back.
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You could just not accept cheques. We don't, and you do get the odd person complain about it every now and then, but cheques are just too expensive (in admin time) to bother with.
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S
.Spiralling.
- Original Poster
- #8
Isn't there a new code about cheque clearance now? I think that funds are available on day 4 after banking, and if it hasn't bounced by day 6, it won't, because they are not allowed to anymore.
edit:
here it is:
http://www.clickdocs.co.uk/news/view.asp?ID=565
edit:
here it is:
New cheque clearance rules for e-retailers
19 December 2007
New cheque clearance rules came into force on 1 December which UK online retailers and eBay sellers should be aware of or risk becoming victims of fraud.
The new 2-4-6 cheque clearance rules mean that payment by cheque is not guaranteed until the seventh working day after a cheque has been presented to a bank for payment. This means that even if a payment looks to have cleared an account on day four, the money is not safe until close of business on day six.
Anyone accepting payment by cheque should wait seven working days after a cheque has been presented for payment before dispatching goods.
Many people buy goods sold on auction sites such as ebay by cheque.
The new rules have been welcomed by anti-fraud experts since they clarify the sometimes complicated cheque clearance process.
Andrew Goodwill, director of anti-fraud service 3rd Man, said: "The new 2-4-6 rules give a guarantee that on day seven a retailer or member of the public can dispatch goods with the certainty that the money is cleared funds in their bank account, and can not be clawed back unless the payee is a knowing party to fraud. I await the day when we receive this type of guarantee for credit card payments."
http://www.clickdocs.co.uk/news/view.asp?ID=565
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I use Paypal a lot to receive online payments, not because I like Paypal but because it is so convenient!
Last night however I got a Paypal payment in the form of an Echeque - this happens if the payer does not have a credit/debit card registered or if said card has expired.
Echeque payments have been known to take weeks to clear!
However for £3.75 it is really not worth the hassle of refunding and getting them to pay in some other form. I too will take the risk and keep my fingers crossed...
Last night however I got a Paypal payment in the form of an Echeque - this happens if the payer does not have a credit/debit card registered or if said card has expired.
Echeque payments have been known to take weeks to clear!
However for £3.75 it is really not worth the hassle of refunding and getting them to pay in some other form. I too will take the risk and keep my fingers crossed...
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I had an echeque few weeks ago, I simply emailed the customer with the details (they may not even be aware their cc was out of date etc) then I simply cancelled the echeque transaction from my end.
Or if you really want you can wait for the echeque to clear
suppose its al based on the value of the transaction, but like you say for a couple of quid, less than a fiver i would send item and take the risk.
Or if you really want you can wait for the echeque to clear
suppose its al based on the value of the transaction, but like you say for a couple of quid, less than a fiver i would send item and take the risk.
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Although I agree this is a good practical suggestion, what you are suggesting is illegal and could constitute fraud.
A guarantee card is only valid if you have had sight of the card, checked signatures etc - claiming you have (by writing the number down) when you haven't is not something you should advocate in public.
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