Lodging a cheque to yourself

[MugsGame]

While we're on the subject of AIB and lodging cheques - has anyone used the lodgement facility available on a limited number of their ATMs? (And I do mean an ATM, not an in-branch QuickLodge machine.).

I put a cheque in an ATM a few months ago and it was never processed. AIB couldn't trace it and didn't seem concerned that this suggested a major problem with their internal procedures.

Eventually I tired of the run-around and asked the drawer to cancel and reissue.


Has anyone else had problems (or even succeeded) lodging through an AIB ATM ?

If the drawer had refused to reissue - what come-back would I have had?

 

[Guest127]

as far as i know presenting cheques with no funds and trying to get a few days credit is know in banking circles as 'kiting' and is frowned upon. Mbna wont let you pay off your credit card with an mbna cheque and aib wont let you clear your credit card with any kind of cheque.

 

[CCOVICH]

aib wont let you clear your credit card with any kind of cheque.

I presume you're talking about when you present a cheque at their branch, as opposed to sending one to their CC processing centre?

Up until I closed my BoI CC account, I had always paid my BoI CC bill by a cheque drawn on my AIB account.

 

[RainyDay]

Mbna wont let you pay off your credit card with an mbna cheque

Which would be like trying to clear your own overdraft with a cheque drawn on the same account!

 

[Guest127]

ccovich: rainyday has in one. aib wont let you pay an aib credit card bill with one of their own cheques. and if you pay through an post it has to be cash. mbna let you pay by cheque but just not one of theirs

 

[CCOVICH]

Hang on-do you mean that I can't pay an AIB cc bill with a cheque drawn on my AIB current account? This doesn't seem correct? RainyDay was talking about MBNA (who seem to offer a cheque book on their cc accounts?)

 

[MonsieurBond]

AIB give value at time of lodgement but will take it back if the cheque bounces. This could lead to an unintended or unauthorised overdraft, but it's better than having to wait for the cheque to clear.

This is true - and non-AIB cheques can take up to FOUR working days to "clear". (I am still convinced that cheques "clear" within a day, and any delay imposed by the bank is just to allow them to keep the money in a high interest bearing account for a few days. )

Be aware that AIB and most banks charge (or at least reserve the right to charge) interest on uncleared cheques, i.e. if you lodge a cheque then withdraw more funds than are in your account (prior to the lodgement actually being fully credited), you can be charged interest as it is akin to an overdraft.

In the U.S., banks even look at the date of the cheque - if you write a cheque today but your salary doesn't hit until tomorrow, when the cheque is presented, you could be charged uncleared interest if you did not have funds in the account to match the cheque amount on the date the cheque was written! I am not sure if any Irish banks do this here.