# PTSB Clearing cheque



## sharonp (12 Oct 2007)

Hi,

I get paid weekly by cheque. I lodged my wages into my Permanent TSB Current account last Fri, it cleared today. A girl in PTSB told me it takes 5 working days for a cheque to clear. If this is the case why can BOI & AIB clear cheques immediately?


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## ClubMan (12 Oct 2007)

Anything here?


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## sharonp (12 Oct 2007)

Thanks for your reply, i understand the bank must confirm payment from the other bank but how can some banks clear a cheque instantly?


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## Towger (12 Oct 2007)

AFAIK. With the other banks and probably the PTSB there is a flag (maybe a limit as well) on their computer system to give you 'instant' access (value) to Credits into your account. Basically it depends on if they trust you not to do a bunk if a cheque bounces.


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## runner (12 Oct 2007)

My experience with TSB is that it always takes a week (5 working days).


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## Mpsox (12 Oct 2007)

The nornal cheque clearance process interbank is 5 days, this is because of the time taken to physically transfer a cheque from one bank to another
AIB and BOI don't neccessarily clear a cheque in 5 days, however they do give you access to the funds. If the cheque bounces they will still try and get the money back from you, they are simply accepting the risk that you will not lodge a cheque, knowing it is going to bounce and do a bunk with the money. PTSB don't accept this risk


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## sharonp (12 Oct 2007)

I just think its a bit unfair when its the same amount from my employer every week especially as BOI & AIB will clear them immediately for other employees!


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## Mpsox (12 Oct 2007)

it's not unfair, it is simply a business risk decision that the other 2 banks have taken. Remember that if your employer got into financial difficulty, AIB and BOI could be left at a loss. 
Free banking is not necessarily always free!!!!!!!!!


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## Joe1234 (12 Oct 2007)

sharonp said:


> I just think its a bit unfair when its the same amount from my employer every week especially as BOI & AIB will clear them immediately for other employees!



Why not move your account to either AIB or BOI?


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## shilling (13 Oct 2007)

AIB & BOI will only give you access to the money immediately if you are proven customer. Not if you are a new customer.


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## demoivre (15 Oct 2007)

I lodged cash at lunchtime last Monday to my PTSB current account through the ATM and it didn't show as a cleared / available balance that afternoon when I went to pay a bill online - it took 24 hours for the cash to become an available balance even though it showed as my account balance !


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## Quest (15 Oct 2007)

sharonp - You should ask your employer to pay you electronically, this would be cleared funds as soon as it hits the account, as well as being the most cost effective way of payment for both you and your employer.


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## Gulliver (15 Oct 2007)

The word "clear" applied to cheques in Ireland has a variety of meanings. Most countries who use cheques have a "Clearing house" - a specialist organisation which performs the clearing operation. Ireland does not. The clearing arrangements are managed by the Irish Paper Clearing Company, one of the IPSO group of companies, but the actual clearing operations are performed by the banks among themselves.

In the old days, a cheque had to be presented at the branch on which it was drawn before a decision could be made on whether it would be paid or bounced. The drawers bank could delay such a decision until close of business on the day following presentment, if the cheque was presented through the clearing system (as opposed to presentation over the counter). If it was presented over the counter, such a decision would be made immediately, and the payee could obtain funds immediately.

Nowadays, many banks treat their branch network as if it was a single branch, and so a cheque presented in branch A, drawn on branch B of the same bank might be paid immediately.

However, the story is different if it is drawn on another bank.

If a Bank of Ireland, Newbridge cheque for €500 is lodged in PTSB, Dundrum, on say a Thursday, then the following is a possible sequence of events:-

Thursday.... €500 is credited to your account with an "uncleared" flag
Friday........ Morning - cheque arrives in PTSB clearing department, is sorted, and is delivered to Bank of Ireland as an item in the morning exchange of cheques. ....Friday afternoon... PTSB and Bank of Ireland settletheir clearing account through the Central Bank --including this €500
Monday.... Morning- cheque is presented to the payers account at Newbridge. If the account has adrquate funds, then the cheque may be paid. If not, then the payment is deferred for a day.
Tuesday... Deferred cheque is again presented for payment. If there are not adequate funds, then the cheque is returned to PTSB Dundrum as a bounced cheque.
Wednesday.. PTSB receives the bounced cheque in the post, and a notification that Bank of Ireland wants to recoup the amount. PTSB debits your account (a) with the amount of the cheque (€500) and (b) with a charge for all of the administration involved. IF PTSB does not receive such a bounce and notification, then it will remove the "uncleared" flag.

Some banks as mentioned in previous posts dispense with such flagging arrangements for customers who have established a proven record.
editor -


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## bond-007 (15 Oct 2007)

I think the problem is that PTSB's policy is so rigid in respect to cheques it does not matter if you a proven customer of 10 years they will not give you value on a cheque without waiting 5 days.


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