Post dating cheques uk
However, putting a stop payment on a cheque does not guarantee that the funds will not be withdrawn from your account.
For a stop payment to work, your request must be made and processed before the cheque is cashed.
You can learn more about cheque fraud and how to protect yourself against becoming a victim in the Fraud Prevention section.
You may have heard recently about a new way to deposit your cheques. Sign the back of your cheque and then log into your bank’s mobile banking application, choose the picture deposit service and follow the instructions.
So when you write a cheque, you are agreeing to pay another individual or organization money that you owe them and you are instructing your bank to make that payment.
Here is some helpful information about the use of cheques and how they are processed by financial institutions.
If your bank had given you immediate access to the funds, it will then remove the funds from your account.
If you were the cheque-writer, very often your financial institution will charge an NSF fee.
A cheque is an agreement of payment between two individuals or organizations.
You can avoid these fees by ensuring there is enough money in your account to cover the cheques that you write.
Sometimes a post-dated cheque is deposited before the date on the cheque.
For example, if John Smith writes a cheque to Jane Doe, she can endorse the cheque on the back and give it to you in payment of a debt.
You can then endorse the back of the cheque and deposit it into your account. To protect against someone else fraudulently cashing a cheque, John Smith can write “For deposit only to account of payee” with his signature, which ensures the cheque can only be deposited into Jane Doe’s account.