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A crossed cheque is a cheque that has been marked specifying an instruction on the way it is to be redeemed. A common instruction is for the cheque to be deposited directly to an account with a bank and not to be immediately cashed by the holder over the bank counter. The format and wording varies between countries, but generally, two parallel lines may be placed either vertically across the cheque or on the top left hand corner of the cheque. By using crossed cheques, cheque writers can effectively protect the instrument from being stolen or cashed by unauthorized persons.[1]
Cheques can be open (uncrossed) or crossed.
Open cheque[edit]
An open cheque is a cheque that is not crossed on the left corner and payable at the counter of the drawee bank on presentation of the cheque.
Crossed cheque[edit]
A crossed cheque is a cheque that is payable only through a collecting banker and not directly at the counter of the bank.
Two parallel transverse lines, with or without any word, are generally drawn on the top left-hand corner of the cheque.
Types of crossing[edit]
General crossing[edit]
A crossed cheque generally is a cheque that only bears two parallel transverse lines, optionally with the words 'and company' or '& Co.' (or any abbreviation of them) on the face of the cheque, between the lines, usually at the top left corner or at any place in the approximate half (in width) of the cheque.[2] In the UK, the crossing is across the cheque by the person who originally wrote the cheque (the drawer), or it can legitimately be added by the person the cheque is payable to (the payee), or even by the bank that the cheque is being paid into.[3]
Important information. Cheques are valid for 6 months from date of issuance, unless otherwise stated on cheque. Locate a Quick Cheque Deposit Box near you or visit our 24/7 Self-Service branches! The price of cheques varies depending on the amount and style ordered. With some banking accounts such as the RBC Signature No Limit Banking ® and RBC VIP Banking ® account, they are included. You can order and view the prices online or call us at 1-800-769-2511 1-800-769-2511.
Generally-crossed cheques can only be paid into a bank account,[4] so that the beneficiary can be traced.[5][citation needed]
A crossed cheque on its own does not affect the negotiability of the instrument.[citation needed]
Account payee[edit]
Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as that which appears on the ‘payee’ line of the cheque (i.e. the person who has received the cheque, who is legally the “payee” and “holder” of the cheque).
Not negotiable[edit]
The words 'not negotiable' can be added to a crossing.
The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument.
Restrictive or special crossings[edit]
Where some customary instruction is written between the two parallel transverse lines (constituting crossing of cheque) that may result in imposing certain restrictions on the collecting or paying banker, it is called restrictive crossing. The example is 'State Bank of India'. In these cases, the respective restrictions mandate to pay the cheque through State Bank of India (acting as collecting banker) only.
Specific bank[edit]
A crossing may have the name of a specific banker added between the lines. A cheque with such a crossing can only be paid into an account at that bank.
The beneficiary bank can add an additional crossing to allow another bank, who are acting as their agent in collecting payment on cheques, to be paid the cheque on their behalf.
Consequence of a bank not complying with the crossing[edit]
A bank's failure to comply with the crossings amounts to a breach of contract with its customer. The bank may not be able to debit the drawer's account and may be liable to the true owner for his loss.
Cheque Bank Information
References[edit]
- ^Kagen, Julia. 'Crossed Check'. Investopedia.
- ^Participation, Expert. 'Bills of Exchange Act 1882'. www.legislation.gov.uk.
- ^Participation, Expert. 'Bills of Exchange Act 1882'. www.legislation.gov.uk.
- ^Participation, Expert. 'Bills of Exchange Act 1882'. www.legislation.gov.uk.
- ^Goosen, W; Pampallis, A; Amelia Van, Der Merwe; Mdluli, L. Banking in the New Millennium. f Juta and Company Ltd. p. 54.
External links[edit]
From: Financial Consumer Agency of Canada
Enrol in direct deposit
The Government of Canada is switching to direct deposit for all its payments. If you currently receive your federal payment(s) such as your income tax refund, GST/HST credits, Canada child benefit or Canada Pension Plan payments by cheque, enrol in direct deposit.
You have the right to cash your Government of Canada cheque at any bank for free, even if you’re not a customer.
You can cash your Government of Canada cheque at any branch of a bank in Canada that has tellers.
Identification you need to cash a Government of Canada cheque
To cash your cheque, you'll have to show one acceptable piece of identification (ID). The ID must have both your photo and your signature. For example, your ID could be a driver’s license or a passport.
If you don’t have any ID with both your photo and your signature on it, you’ll have to show two acceptable pieces of ID. You may also have someone in good standing with the bank or in the community confirm your identity.
When a bank won’t cash your Government of Canada cheque
Cashing your emergency benefits-related cheque
The Government of Canada has temporarily increased the cheque-cashing limit to $2,000 for emergency benefits-related cheques to individuals.
A bank can refuse to cash a Government of Canada cheque for you if:
- the bank suspects that it's counterfeit
- the cheque is for more than $1,500
- the cheque has been endorsed or signed by a third-party
- the cheque has been altered in some way
- the cheque is connected with a crime or fraud
If the bank won’t cash your cheque, it must give you a letter saying it won’t do so. It must also tell you how to contact the Financial Consumer Agency of Canada (FCAC) if you have a complaint.
Cashing an old Government of Canada cheque
You can cash a Government of Canada cheque no matter how old it is. Government of Canada cheques don’t have an expiry date and never become stale-dated. However, it may take longer to cash an older cheque because a financial institution may first want to verify that the cheque is legitimate.
If you’re having a problem cashing an old federal government cheque, send it to the Cheque Redemption and Control Directorate. Ask to have it reissued with a current date.
Cheque Bank In Time
Cheque Redemption and Control Directorate
Returned Cheques
P.O. Box 2000
Matane, QC
G4W 4N5
Cashing your Government of Canada cheque at a payday lender or cheque-cashing outlet
Payday loan companies and other cheque-cashing outlets charge a fee to cash a Government of Canada cheque. The fee is usually a percentage of the amount you're depositing plus a flat fee.
Example: How much it costs to cash a Government of Canada cheque at a payday loan company
Suppose you have a Government of Canada cheque worth $1,000.
It would cost you about $33 to cash it if the payday loan company charges you:
- 2.99% of the value of the cheque, plus
- $2.99 for each item you cash
This means that after fees, you'd only get about $967 instead of the full $1,000.
Before using a payday loan company or other cheque-cashing service to cash your Government of Canada cheque, make sure you understand all of the fees that you’ll have to pay.
Related links
- Depositing a cheque with your mobile device
Cheque Banker
Cheque Bank And Transit Number
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