how is the cheque cashing procedure done?

Question

it is a business cheque, what do the shop have to do to check it before they cash it? The company the cheque is from is closed today but i need to cash it at a pawn brokers as it's for £3.000 i need it.

I'm in the UK

Answer 1

If the cheque is made out to you then they wont cash it as they will not be able to bank it.

They will cash one of your cheques so if you need the money, get them to cash one of your cheques and pay the company cheque into the bank tuesday - hopefully it wil clear before the pawnbrokers cheques clear.

Answer 2

These days, to mininise fraud, almost all Cheques will be 'crossed'

This means the Cheque has to be paid into the Bank Account of the 'payee' (person whoose name is on the cheque).

In that case you wil have to take it to your own Bank.


There is well know (usually Nigerian) scam that operates like this :-

The con-merchant spins you some lies that convinces you to accept a Company Cheque and Bank it for them. They will offer you 10% (or 20% or whatever) 'commission'.

It's 'drawn' on a real (Nigerian) Bank on a real account - so your Bank accepts the Cheque and after 3 days the money shows up in your account.

After 5 (or 10 days) days everything still seems OK, so you withdraw 80% as cash and pay the con-merchant their 'cut' ...

A month or two later, when the Nigerian Bank gets around to processing the Cheque thay reject it as a forgery !

Your Bank removes the money from your account and charges you £50 for passing a dud cheque.

But you arleady paid the con-merchant - so now you are overdrawn .. and the con-merchant is no-where to be found....