# How to cross cheques



## WizardDr

There is a lot of confusion about cheque crossings and all that.

I wont go into the legal technicalities but if you want to write a cheque and ensure that it can ONLY be cashed by the guy whose name you write on it here's what you do:

Pay : Joe Bloggs (delete the words 'or order' at end of line. Initial the change.
Put two parallel lines on the cheque and write 'Not Transferable' on them.

In Ireland currently, this is the only way to ensure a cheque has to be cashed by Joe Bloggs.


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## ClubMan

I always cross them "a/c payee only". Is this no use? 

Perhaps you *could *go into the legal technicalities for anoraks like me?


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## GeneralZod

ClubMan said:


> I always cross them "a/c payee only".



That's what I always do and was told to do by a banker.


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## redchariot

2 paralell lines across cheque with A/C Payee Only


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## Joe1234

redchariot said:


> 2 paralell lines across cheque with A/C Payee Only



This (spposedly) means that a cheque can only be lodged into an account in the name of the person to whom it is made payable.  But, as can be seen from another current thread in this forum, that does not necessarily happen.


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## ClubMan

So crossing it "a/c payee only" can be ignored who is to say that this alternative might not also be ignored? What makes the alternative way presented here different?


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## liteweight

redchariot said:


> 2 paralell lines across cheque with A/C Payee Only



This is correct AFAIK. The other thread mentioned above was when a cheque was cashed illegally although it had been crossed.


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## CCOVICH

I have never heard of 'not transferable' being used when crossing cheques, so I'd be interested to hear more on this.

A/c payee only means that the cheque should only be cashed to the payee's account, i.e. it cannot be endorsed (signed over to someone else), which in effect means that it is 'non-transferrable'.

Of course this does not preclude any bank/institution from (incorrectly) ignoring the crossing.

This previous thread has some more info.


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## Seagull

I've also seen "Not negotiable" on checks. I'm not sure how much attention is paid to the actual words. As long as the cheque has the parallel lines across the corner with some kind of scribble between them, it should be payable only to the person named.


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## eggerb

CCOVICH said:


> I have never heard of 'not transferable' being used when crossing cheques, so I'd be interested to hear more on this.


 
Never heard of "not transferable" either. I have, on occasion, written "not negotiable". This is essentially the same I suppose. Sometimes, I cross it twice - once with "not negotiable" and then with "a/c payee only" - I suppose a bit overkill. 

Just read the inside cover of my BoI cheque book and it just says "cross all cheques to be sent by post". It doesn't give any indication as to how to cross. 

Some large companies seem to cross their cheques "not negotiable" and "& co".

I'd like to know the best way once and for all!


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## CCOVICH

'A/c payee only' would appear to be the safest, as it means that they cheque can only be lodged to the payee's account-assuming of course that the bank follow the order.


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## WizardDr

Sorry I was away for a while:

The crossing 'Account Payee' has no legal significance in Ireland, though it does in the UK after they changed the legislation a few years ago.

The key to what I was saying is to REMOVE the words 'OR ORDER' at end of cheque, as it this creature that gave the instrument its transferability in the first place.

Then placing the words NOT TRANSFERABLE in parallel lines will copper fasten this.

Believe me this is the one.


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## CCOVICH

WizardDr said:


> The crossing 'Account Payee' has no legal significance in Ireland, though it does in the UK after they changed the legislation a few years ago.



Do you have a link to any legislation/official information to back this up?

Or the 'not transferrable' crossing?


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## WizardDr

There is no legal back up for 'Account Payee' in Ireland.
UK change is as far back as 1998
Its 'OR ORDER' is what makes the instrument negotiable in the first instance.


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## CCOVICH

Is there any legal backing for the method you are advocating?


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## GeneralZod

WizardDr are you in a position to backup your claim?


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## ClubMan

I see references to the _Bills of Exchange (Crossed. Cheques) Act, 1906_ on IrishStatuteBook.ie (e.g. [broken link removed][broken link removed]) but I can't find the act itself and don't know if it's the authoritative legislation on the matter...


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## WizardDr

Look 
its 'Or Order' that makes the item negotiable in the first instance.

Just letting people know that it works. 

Dont use it if you dont want to.


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## ClubMan

WizardDr said:


> Look
> its 'Or Order' that makes the item negotiable in the first instance.
> 
> Just letting people know that it works.
> 
> Dont use it if you dont want to.


It's fair enough for people to ask you on what basis you are recommending this. A link to the relevant legislation would help. If you can't provide it then that's fine but don't expect people to take your advice seriously or as authoritative if you can't provide anything that independently corroborates your claims.


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## GeneralZod

I just wrote a crossed cheque and while doing it realised that my crossed
lines were going through the "or order" at the end of the payee line.
I always cross in that part of the cheque  between where the amount
in words is written and the amount in numerals goes in where a banker 
told me to.

I've been unconsciously taking the first of WizardDr steps (excluding
initialing the removal of "or order").

So assuming "acc payee only" and "not transferable" have the same legal 
interpretation there doesn't appear to be a difference between the two 
supposedly different methods mentioned in this thread.


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## eggerb

I'm still none the wiser! I suppose, I just continue crossing them with "not negotiable" and "a/c payee only"!


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## WizardDr

Here is the UK Cheques Act 1992. This is the Act that brought in legal backup for 'account payee' which was not there up to this. (And still isnt in Ireland). 

As there is no equivalent legislation in Ireland, 'Account Payee' has no legal significance at all in Ireland, other than a normal 'crossing', which means it has to be paid through a Bank. It does not mean the Bank is liable if the wrong person cashs the cheque. 

One cannot get the Bills of Exchange on line

Here is the extract from UK Cheques Act for Tomas and others:

Cheques Act 1992 (c. 32)  
  1992 Chapter c. 32 



    An Act to amend the law relating to cheques. 
  [16th March 1992] 




    Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:— 

Amendment of Bills of Exchange Act 1882: non-transferable cheques. 

        1.    After section 81 of the [1882 c. 61.] Bills of Exchange Act 1882 there shall be inserted the following section—
"Non-transferable cheques. 

        81A.    —  (1) Where a cheque is crossed and bears across its face the words "account payee" or "a/c payee", either with or without the word "only", the cheque shall not be transferable, but shall only be valid as between the parties thereto.

    (2) A banker is not to be treated for the purposes of section 80 above as having been negligent by reason only of his failure to concern himself with any purported indorsement of a cheque which under subsection (1) above or otherwise is not transferable.
"


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## laurajayne

You should always write a/c payee only and draw the lines yourself so it stands out more.. This means it can only go to there a/c and should not be cashed under any circumstance.. It really all depends on the experience of the cashier.. If you want the cheque cashed just write it to the person with no crossing they will need id and will have to go to the branch it is drawn on unless they are very well known in their own branch with a good credit score..


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## WizardDr

thats all very well laurajayne, it just has no legal basis what so ever in Ireland. 

Here is another technical extract:

By § 3 of the act a bill of exchange is defined to be "an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer."'

The words 'or order' makes the instrument transferable in the first place.


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## levelpar

Hi, For many years I have been crossing cheques where my intention was for the cheque to be lodged in the account of the payee ONLY. I crossed a cheque with 2 parallel lines with "and Co." but for some reason I lapsed into crossing with the parallel lines and no further wording. Anyway I read somewhere that cheques are on the way out.


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## laurajayne

I have been in banking for over 10 years and this is what we abide by.. A bill of exchange is a completely different document it is not a cheque so you would be right in what your saying as far as a bill of exchange stands... If the bank the cheque is presented in was to cash a cheque that is crossed a/c payee only and the payer was to discover this believe me the bank would be making some apologies and would have to refund the amount if it had been lost or stolen ar cashed to the wrong person third party etc.. Also if it was e reacurring problem with the cashier they would be taken off cash and or sent on a refresher course..


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## ClubMan

frando said:


> Anyway I read somewhere that cheques are on the way out.


Yeah - I probably write less than five cheques a year at this stage - often to organisations who charge a credit handling fee usually c. 2% . Otherwise I use_ CC, Laser _or cash.


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## nlgbbbblth

Four types of crossing

1 / /
2 & Co
3 Account payee only
4 Not negotiable

Crossings 1, 2, 3 have no legal standing and therefore a cheque with any of these crossings is capable of being endorsed to a third party. Bank will have full protection under Cheques Act 1959 if they negotiate a cheque in this way.

4 means what it says. Cheque cannot be negotiated by anybody else other than the payee. Bank is negligent if misused.

Unfortunately - the vast majority of cashiers are trained to take a cautious line and will interpret crossings 1, 2 and 3 at face value i.e. will not permit endorsement to a third party.


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## nlgbbbblth

nlgbbbblth said:


> Crossings 1, 2, 3 have no legal standing and therefore a cheque with any of these crossings is capable of being endorsed to a third party.


 
...for the purposes of lodging the cheque not cashing it.
The third party becomes the 'payee' and the cheque should be lodged to their account.

In practice it's not the end of the world if Mr X cashes a crossed cheque made payable to him instead of lodging it. A problem only arises if the cheque is returned unpaid by the drawee bank.


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