Cheque guarantee cards

[Carol Anne]

I was talking to some American visitors the other day, and one man, a storekeeper was so impressed by the cheque guarantee card scheme that the banks run here, and was amazed to hear that it has been around here for decades. He told me that they have no such cards in the states and if he takes a cheque in his shop with a credit card or license as ID only, he really has no idea whether or not it will be paid.

Are we the only country in the world with cheque guarantee cards?

[noxlumos]

The problem is that cheque guarante cards donnot actually guarantee cheques and the banks often return them. I have had three customers cheques returned and endless rows with the banks over this, but they still flatly erfuse to honour them and as a result you might notice now that lots of places no longer accept cheques.I don't know if any other country has this system but it appears to be falling apart here.

[Sammy Snake]

A bank will guarantee any cheque guaranteed by a card unless:

The card details (number etc) have been written on the back of the cheque by the drawer

There is more than one cheque written for the same transactionn at the same time (transaction for �120, cheques for �100 and �20 writteb out

[lady_p_gold]

Well I would like to hear further on this as I am surprised by noxlumos's reply. Do cheque guarantee cards guarantee cheques or don't they ?? Surely the bank are not honouring their promise if they then refuse the cheques providing everything has been done in order.

[spudqueen]

When I worked in a Bank the criteria for a cheque being guaranteed by a card was that the person to whom the cheque was payable (or the shop etc) actually saw the card and wrote the number on the back (so writing the cheque guarantee card number on the back of the cheque yourself and then sending it through the post doesn't count), the cheque had to be signed (otherwise how could someone have checked that the signatures agreed) and that only one cheque each day for each payee ,as Sammy Snake says, (so buying something at one M&S till then wandering round and buying something else at another till meant that only the first cheque was actually guaranteed),

[noxlumos]

I have never had a problem getting cheques honoured form almost bankrupt customers until; the last two years. since then despite the fact that everything was written correctly etc I have had 3 returned. I agree if it says "guarentee" then that's what it should be, but unfortuneatly banks are now refusing to honour cheques from customers whose accounts they have closed/suspended but who still have possession of the cards and cheque books.Ask any small retailer ( garages especially) and most will tell you that they are not worth a light.

[khana]

As long as the cheques have been issued correctly as stated above by other replies then the cheques will be honoured regardless of the account being closed or suspended. The only other time they can be returned is through fraud and the signature on the cheque being blatently different to the real customers signature.....eg the signature was not checked against the card by the shop assistant (and lets face it, how often have you seen this being done).

[noxlumos]

I suggest you ask around shopkeepers khana, you'll find it a very common problem and I ALWAYS check signatures thanks very much.

[Carol Anne]

Isnt there some kind of umbrella organisation who run the scheme who should adjudicate on such matters.

Surely if the basics have been applied ie:

Cheque written and signed in presence of payee

Within the card limit and otherwise correct

Card number ( Often not the long number accross the middle of the card), written on the back of the cheque by the payee.

If such a cheque is dishonoured surely, in order to maintain confidence in the system an explanation must be given as to why?

Anyway, who's to say who wrote the number on the back ? Do they employ psychics I wonder.

[khana]

noxlumos, I'm glad your diligent enough to check the guarantee cards properly. I must just have an honest face as hardly anyone ever bothers checking mine.

This being the case then you should have no problem with all the cheques you deposit being honoured. If you find they are being returned then phone up the Bank they are drawn on and query it with them as it is IMPOSSIBLE not to honour them if they are drawn correctly......and thats 20 years of Bank experience talking (believe me, with some of the customers accounts i've seen, I would have loved to bounce them !).

[noxlumos]

Thanks for the advice Khana but already gone that route and have a huge dossier of letters to and fro to confirm it. Currently in the hands of the ombudsman :(