Cashing Cheques

[Buds]

Can the following scenario be true.if i get paid by cheque and is made out to "cash".can i cash that cheque or is authorisation to cash it only with the person who wrote it? secondly is the bank draft a guaranteed form of payment.i.e it cant be bounced?

 

[Grizzly]

Once there is funds in the account a cheque made out to cash can effectively be cashed by anybody. A bank draft can be forged or altered or stolen so it can be bounced, otherwise it is a guaranteed form of payment.

 

[Brendan Burgess]

The holder of a cheque made payable to cash can cash it. So you can pass it on to your friend and she can cash it. It's unlikely that your own bank would pay out on it as it could still bounce. However, if you present it at the cheque writer's branch, they should pay out on it or bounce it there and then.

Bank drafts are cheques issued by banks. It can bounce in the following circumstances:

1) If it's forged - happens from time to time.
2) If the bank goes bust before it's cashed

But if I go into AIB and buy a bank draft made payable to Buds and give it to you, the bank can't stop it.

 

[Mpsox]

Many banks require you to lodge a cheque payable to cash to your bank account. Whilst they may pay out the relevant amount in cash to you when you lodge it, were the cheque to bounce, they would then debit your account the relevant amount.

 

[burner]

The holder of a cheque made payable to cash can cash it. So you can pass it on to your friend and she can cash it. It's unlikely that your own bank would pay out on it as it could still bounce. However, if you present it at the cheque writer's branch, they should pay out on it or bounce it there and then.

I get cheques from a company who's account is with AIB, but their branch is far away from me. If I present the cheque to any AIB branch will they cash it once I have ID?