Credit Card cheque books

B

Bronte

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Do credit cards send out cheque books to people who have a credit card with them. Many moons ago on AAM I discovered to my horror they send out credit cheques to people to spend money but I didn't realise there was such a thing as a cheque book. How does this work? Do you sign it like a normal cheque in any shop and the amount is put on your credit card? Why can't one just use the credit card?

Also is there stamp duty on the cheques? How does this get paid?
 
AFAIK - the only cheque I have heard of from CC companies is one that MBNA offer ? I don't think that they're prevalent ?
 
As far as I know MBNA are the only ones who issue them. You generally can’t use them in shops as they don’t come with a cheque guarantee card, but you could if you were paying for a large item such as furniture that had to be ordered in for you & would possibly take weeks, so the cheque would be well cleared by the time the goods were available, or you could write to someone you know.

I doubt if many people actually use them any more, as most people use online banking, but an example of someone using them would be if they had paid a deposit on an item of furniture & the balance had to be paid on delivery by cheque or bank draft, & the person didn’t have a cheque book. People used also write a cheque payable to themselves & lodge it into their regular current account as a short term loan to themselves.

They are treated as a cash advance & the associated interest & charges apply. As far as I know they don’t charge the medallion stamp duty, but am open to correction on that.


I would avoid using them if I were you.
 
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