Cheque gaurantee cards

MonsieurBond said:
I see that the [broken link removed] site says:



I wonder do they mean maximum instead of minimum?
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I just talked to somone 'in the know' on retail banking, and apparently the bank must honour every cheque written with a cheque guarantee card, unless they can repossess the chequebook and card, so it is possible to write 25/50 cheques for €130 each and the bank will have to honour them all. Obviously, this is not explicitly stated in the ts&cs, as it would lead to people abusing this:

I know someone who wrote out a book of 40x€130 cheques with no money to back them up. The bank begrudingly paid them. The bank had kittens when the cheques hit the bank. He wrote them out to his friends who gave him the cash and he used the €5K obtained to leg it to Australia.

MB-I would say that IFSRA do mean minimum, as the bank could choose to honour more than €130, but have no obligation to do so.
 
If valid cheque guarantee card is used bank is obliged to pay cheque from customers account (irrespective of whether there are funds in account or not) - on cheques up to value of E130. Writing a cheque guarantee card on the back of a cheque for an amount greater than this is in effect useless.

Cheque Guarantee Card is written on back of cheque, Bank compares same to their records. If in order cheque must be paid. Obviously must be within expirey date etc.

Yes - does create credit exposure risk for Bank, hence why they won't (or at least shouldn't) hand out until they've satisfied themselves as best they can on customers credit worthiness.

Only instances they can bounce cheque would be.....

a) fraud - and signature on cheque bears no resemblance to that on cheque guarantee card (therefore retailer did not carry out necessary checks)

b) card out of date - again retalier deemed not to have carried out appropriate checks.

c) if card is placed on 'abuse' list, which is circulated to retailers, and retailer cashed after same was circulated on this list.

In reality, used less and less in todays environment as more people are using Laser/Credit Cards, and the limit of E130 has not increased in line with inflation, thus limiting it's usefullness.
 
Bank Manager said:
If valid cheque guarantee card is used bank is obliged to pay cheque from customers account (irrespective of whether there are funds in account or not) - on cheques up to value of E130. Writing a cheque guarantee card on the back of a cheque for an amount greater than this is in effect useless.

Cheque Guarantee Card is written on back of cheque, Bank compares same to their records. If in order cheque must be paid. Obviously must be within expirey date etc.

Yes - does create credit exposure risk for Bank, hence why they won't (or at least shouldn't) hand out until they've satisfied themselves as best they can on customers credit worthiness.

Only instances they can bounce cheque would be.....

a) fraud - and signature on cheque bears no resemblance to that on cheque guarantee card (therefore retailer did not carry out necessary checks)

b) card out of date - again retalier deemed not to have carried out appropriate checks.

c) if card is placed on 'abuse' list, which is circulated to retailers, and retailer cashed after same was circulated on this list.

In reality, used less and less in todays environment as more people are using Laser/Credit Cards, and the limit of E130 has not increased in line with inflation, thus limiting it's usefullness.
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Is the above still valid? Am trying to ban the acceptance of cheques in my company but am under pressure to accept cheques to a value max value of €130 if a guarantee card is presented. Is is just a case of wrting the details of the card on the back of the cheque?


Thanks
 
I have always believed the following to be true ..

.. a card number, written on the back of the cheque, can be invalid if written by the person offering the cheque in payment, i.e. it's the responsibility of the person accepting the cheque to write the cheque number.

Not covered in what's cited below ? Can anyone confirm, or refute, this ?
 
BM's post is still valid. Yes, it's the responsibility of the receiver of the chq to write Card no & check that all details are correct.

Why does anyone want to deal in chqs these days ? They're costly, inefficient etc. The only reason I would see for writing a chq is when it has to be posted!

Laser is a much better option.
 
Laser requires funds to be in the account at the time of the transaction.

Paying by cheque and guarantee card does not.
 
yes but the laser card has the CG symbol. So paying by cheque in that manner can still be done. If the transaction takes place at the right time you can buy yourself four or five days credit.
 
bond-007 said:
CGC's are virtually a thing of the past now. Laser is king now.
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My GP doesn't take plastic, and then takes months to lodge the cheques.

My childcare provider doesn't take plastic.

Tradesmen don't take plastic.

These are the main reasons why I continue to need cheques
 
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