2006-11-10 02:46:02 · 7 answers · asked by dritan b 1 in Business & Finance ➔ Credit
It's a paid service that a vendor uses to ensure s/he will be paid for service or goods--even if your check bounces.
The business owner will run your check through the service. The service will instantly verify your last known address, phone number and whether or not you've got any outstanding NSF checks. If everything looks good, they approve your check. If information is missing, your check account is too new or you have a check bouncing around out there, they will not approve your check.
If they approve the check, but it bounces, the vendor has not lost anything. But, the guarantee company will be on you like a duck on a junebug.
2006-11-10 03:02:14 · answer #1 · answered by TroubleBubble 2 · 2⤊ 0⤋
A cheque guarantee is a document (typically a card, or an emblem on the back of your debit/bank card) that guarantees a receipient of a cheque that the payment of a cheque will be honoured up to a certain amount.
Look on the back of your bank card. If it has a shiny holographic logo (usually on the bottom right hand corner) with a value and the words "cheque guarantee" in small lettering, then you can issue cheques from the account that this bank card relates to at the till of a retailer that accepts cheques as a form of payment, up to the value that is stated on the logo.
However, with the widespread use of chip & pin debit cards, a lot of places have phased out the use of cheques as payment.
2006-11-10 02:50:09 · answer #2 · answered by k² 6 · 0⤊ 0⤋
Usually a card, iswued by yor bank, which has a number on it, it guarantees the cheque up to a specified value if the person you are paying it to writes the number on the back and you sign it. It means that the cheque will be honoured, and no self respecting business will accept a check without such a card. If you don't have sufficeint funds, then you willbe overdrawn and the bank will penalise you, do it too often and the card will be taken away from you. It is usually your debit card as well, usually a switch, solo or visa debit card.
2006-11-10 03:28:24 · answer #3 · answered by mike-from-spain 6 · 1⤊ 0⤋
Essentially, a cheque guarantee ensures that the bank will honour the cheque and pay the amount stated. The mechanics of guaranteeing the cheque varies between the UK and the US. If you are in the US, TroubleBubble has given you a top answer. If you are from the UK, twokay75 has given a good answer.
2006-11-10 07:00:06 · answer #4 · answered by Penfold 6 · 0⤊ 0⤋
Well I can Guarantee that if your check bounces,
The bank will be after you!
LOL!
2006-11-10 02:54:06 · answer #5 · answered by Banderes 4 · 0⤊ 0⤋
it is a card reference number that guarantees to seller that the money will be paid to him
2006-11-10 02:55:36 · answer #6 · answered by Anonymous · 0⤊ 0⤋
guanrantees that if you dont pay it they will be after you lol, because the person who you have paid will still have got it!
2006-11-10 02:58:17 · answer #7 · answered by button moon 5 · 0⤊ 0⤋