The following is important information regarding the use of your cheques.

What is a cheque?

A written instruction to NAB to pay a specified amount of money on demand can be given in the form of a cheque. Check access is available through a selection of NAB’s banking services. The following characteristics apply to you if you have access to cheques: Are you interested in learning more about bank checks? Check out our cheque page.

Note that the special clearance is no longer being offered; thank you for your understanding.

Drawing a cheque

In order to avoid fraudulent alteration, you must complete and sign a check with the signing authority you’ve provided to NAB.

In order to properly sign a cheque, you must: provide your full signature for each alteration, date it, and complete all of the information.

You are deemed to have requested that the amount shown on the cheque is taken from your account and paid to the payee or the payee’s bank when NAB receives your cheque for payment. If there are not enough cleared funds in your account, NAB may dishonour or pay the cheque.

Clearing a cheque

Three business days are typical for cleared funds to appear in your account after you deposit a check. Even if the funds have been cleared, this is still the case.

For the most part, clearing a check involves depositing a check into your NAB account; then, we will seek out the bank on which it is drawn, and finally the bank will pay you the money from the check. When each of these steps has been completed, the check will be considered cleared for payment.

Despite the fact that your account will be credited with the check’s proceeds immediately after deposit, you will not be able to withdraw the value of a check you deposit until it has cleared. If the check is payable to “cash,” this regulation applies.

Effect of crossing

If you “cross” a check (by drawing two parallel lines from top to bottom across the front of the cheque), you are indicating to NAB that the check should not be cashed over the counter. Therefore, the check has to be cashed in at a bank (for example, into the account of the customer). If NAB were to cash a crossed check, the company could be held liable for any losses incurred by the legitimate owner of the check.

Meaning of ‘not negotiable.,’

You may write the words ‘not negotiable’ between the two parallel lines on your cheque. This means that if the cheque is transferred to another person, the person who obtains the cheque has no greater rights than the person who gave it.

For example, if the cheque was stolen, the person from whom the cheque was stolen might recover the amount of the cheque from the person who received payment, even though that person who received it may have done nothing wrong.

Meaning of ‘account payee only.’

Between the two parallel lines that are already present on your check, you also have the option of writing “account payee only.” When you use these words, you are instructing a bank that will accept the check to make the payment solely to the bank account of the person who is named on the check. If someone other than the payee attempts to deposit the check into his or her account or cash the check, the bank is notified that it needs to conduct further investigation into the situation.

If NAB negligently pays the proceeds of the check to a person who is not the payee, the bank could be held liable to the person who is legally entitled to own the check. Even if the check is written to “account payee only,” the transfer of the check is still possible.

Significance of deleting ‘or bearer.’

“Or bearer” is usually printed at the bottom of checks, after the line in which you write down who is being paid, in order to avoid any misunderstandings. This is the line immediately following the signature.

Or bearer means that the bank from which a check is drawn has the authority to pay any amount owed to a check’s bearer, whether that bearer found the check or stole it. Unless the bank has reason to believe the check has been stolen, this is the case.

Changing this position is as simple as removing the words “or bearer,” which will accomplish your goal. As a result, the cheque will be referred to as a “order” check. “order” cheques require the bank to pay the cheque only to the person named as the payee or the person to whom it has been authorised.

Stop payment

You may stop payment of your cheque before it has been presented for payment by calling 13 22 65 from Monday to Friday from 8:00am to 7:00pm (AEST/AEDT), Saturday from 7:00am to 6:00pm (AEST/AEDT), Sunday from 9:00am to 6:00pm (AEST/AEDT) for personal customers or 13 10 12 from Monday to Friday, 8:00am to 8:00pm (AEST/AEDT), Saturday to Sunday, 9:00am to 6:00pm (AEST/AEDT) for business customers.

If you have access to NAB Internet Banking or NAB Telephone Banking, you can stop payment instruction 24 hours a day, seven days a week. Alternatively, you may notify any branch of NAB, either in person or by phone.

NAB can stop payment of a cheque only if the:

• The cheque has not been presented for payment
• details you provide are accurate (for example, the cheque number(s) are correct).

No matter how you choose to notify NAB, it is essential to tell us quickly if you want to stop payment. If you advise us by telephone, we will stop payment of the cheque (assuming the cheque has not already been presented for payment) and may also seek your written confirmation.

It is essential to identify the cheque by providing: the account name and number, the cheque number and amount; the date of the cheque; and to whom the cheque is payable.

Stops can’t be placed on a single cheque or sequence of cheques via NAB Internet Banking or any other channel, between the hours of 9 pm and 4 am AEST/AEDT inclusively.

1. Log in to NAB Internet Banking with your NAB Identification number (ID) and NAB Internet Banking password.
2. From the main menu, go to the Account Information section and select the Stop Cheque sub-menu option.
3. Select the account to stop the cheque payment from the Select account drop-down list.
4. Select why you want the cheque stopped from the Reason for stopping the cheque drop-down list. A fee of $15 per stopped cheque may be charged.
5. Select either:

• single cheque – Enter one cheque number
• range of cheques – Enter the first cheque number to stop and the last cheque number to stop.

Cheque numbers must be:

• in sequence (for example, 003 – 005 means cheques 3, 4 and 5).
• inclusive (for example, 003 – 005 means you are requesting a stop on cheque 3 and 5, not just cheque 4).

6. Click Submit. Your request has been sent.

NAB may charge a fee for stopping payment on a cheque, and we will advise you of this fee when you request NAB to stop payment on it. The price is also outlined in NAB’s Personal Banking fees Guide.

Depositing a cheque into your transaction or savings account

You can fund your NAB Everyday Banking account with a cash or check deposit at the NAB branch that is most convenient to you or at one of the NAB ATMs that accept deposits. You can also use a smartphone that runs the iOS operating system or the Android operating system to deposit a check into your account.

Depositing a cheque written in joint names

A check that is written in both names can only be deposited into a joint account.

The chequebook has not arrived.

If your cheque book has not arrived within ten business days, please call 13 22 65 from 8 am – 7 pm Mon-Fri, or 9 am – 6 pm on weekends (AEST/AEDT) or +61 3 8641 9083 if you’re overseas.

Re-order a cheque or deposit book

If you use NAB Internet Banking, you can order a new chequebook or deposit book. Navigate to the Accounts section of NAB Internet Banking and select the Re-order Book option.

If you run out of Express Business Deposit (EBD) bags, you can reorder them through NAB Internet Banking. Your business will continue to run smoothly as long as you continue to use EBD-specific deposit books (either standard or agent books, these books have EBD credit printed on each deposit slip).

The bank branch or teller at your financial institution can help you order the EBD deposit book if you haven’t already done so.

AEST and AEDT (Australian Eastern Daylight Time) prohibit the placement of re-orders for checks or deposit books between the hours of 9 p.m. and 4 a.m., inclusively, through any channel, including NAB Internet Banking.

The unauthorised alteration of your cheques

When you write a check, you should take precautions to reduce the likelihood that the check will be forged or fraudulently used.

When writing a check, you should never use pencil or ink that can be erased, leave no spaces between the words or figures, begin the amount in terms as close as possible to the left-hand side, and begin the amount in formations as close as possible to the dollar sign ($). In addition, you should never leave any spaces between the words or figures. Never sign a check until after it has been completely filled out, and always write the amount in words rather than numbers because numbers are easier to manipulate than words.

Dishonouring cheques

Depending on the circumstances, NAB may return your check to you as “dishonoured” or “returned unpaid. NAB has sole authority to make this choice. There are a number of reasons why you might not be able to pay your bill, such as if you don’t have enough money in your account to cover the amount of the check; if your cheque is unsigned, more than 15 months old, post-dated, or has been materially altered (such as by changing the amount initially started, on it), and you may not have provided your full signature against the alteration; or if you have instrucated that you don’t have enough money in your account to pay your bill.

NAB reserves the right to charge you for the return of your check.

There is more information on the fee in The Personal Banking Charges Guide of The National Australia Bank (NAB).

Third-party cheques

Third-party checks are those that are presented for payment into the account of someone other than the payee named on the check.

Even if the check is crossed, NAB will conduct a thorough investigation to determine whether or not the bearer has the legal right to possess the check. It’s possible that NAB could be held liable if we make a payment to someone who shouldn’t have received it, even if we did so in good faith and without negligence.

The payee must sign the back of the document before the cheque can be cashed if it is for a “order.”

How to cash foreign currency cheques

Do you need to cash a check written in a foreign currency that was issued by a bank in another country? There is hope because of us.

Two ways to cash your cheque

Purchase

We are able to purchase the check from you and pay you the amount of the check in Australian dollars or another currency, less any fees that may be applicable. Cheques with a value of less than AUD 2,000 can be processed through this option.

Collection

If you’d like us to collect the money from the bank that issued the check, we can do so on your behalf. If the check is found to be in good standing, the funds will be deposited into your account, less any fees that may be charged.

The clearing process for a check typically takes six to eight weeks to complete, depending on the country in which it was issued.

Returning the check to the person who sent it to you and requesting that they transfer the money to you via an international transfer is an option if you are unable to cash your check.

Dishonoured cheques

Was your foreign currency cheque dishonoured? This can happen for a number of reasons:

• there wasn’t enough money in the overseas account
• the cheque was part of a scam or was fraudulently altered
• detail on the cheque was invalid
• the history the cheque was written from is closed.

If this happens after we’ve bought a cheque from you, you’ll be liable for the cost of the dishonoured cheque. This may include:

• the amount we paid you
• any overseas bank charges
• our dishonour fee.

Foreign exchange rates

Check out our foreign exchange rates calculator for more information on the exchange rates that we apply when converting cheques written in a different currency.

How can you cash a cheque without a bank account?

If you go to the bank that issued the check, you will be able to cash the check even if you do not have a bank account. For instance, if someone sends you a cheque from Bank X (as written on the cheque), and you see Bank X, Bank X will most likely let you cash the cheque as long as the person who wrote the cheque has sufficient funds in their account. This is the case even if the cheque is written from a different bank. There is a good chance that Bank X will charge you a fee for using their service.

Can you deposit money into somebody else’s bank account?

One of the simplest and most straightforward aspects of banking is making a deposit. To do so, you can even deposit money into another person’s bank account.

In online banking transactions, the BSB will identify this for you, so you don’t need to include the name of the financial institution.

Make sure you include your name or some other personal message in any reference to your transactions. The recipient will be able to see who sent them the money and when it arrived on their account as a result of this.

How can I deposit cash into my bank account?

Going into a branch of your bank and handing the cash over to a teller is the time-honored method of making a cash deposit into your account. The majority of financial institutions today enable their customers to make deposits using automated teller machines (ATMs).

How can you cash a cheque without a bank account?

If you go to the bank that issued the check, you will be able to cash the check even if you do not have a bank account. For instance, if somebody sends you a cheque from Bank X (as written on the cheque), and you visit Bank X, it’s likely that Bank X will let you cash the cheque as long as the person who wrote the cheque has sufficient funds in their account. However, this is only the case if you visit Bank X in person. There is a good chance that Bank X will charge you a fee for using their service.

FAQs About Cheque

Who Is Able To Endorse A Check?

The person who is drawing the check has the option of crossing it either generally or specially. If the check is open, the holder has the option of writing a general or special notation on the back of the check. The holder of the check has the ability to cross it again after it has been crossed generally.

What Is The Total Number Of Parties In Cheque?

In the process of writing and cashing a check, there are three parties involved. The person or organisation that creates the cheque is referred to as the drawer. The drawee is the financial institution, and the payee is the person or organisation that ends up with the cheque.

What Does It Mean When A Check Has A Double Line?

A check is considered to be crossed if it contains two lines that are parallel to one another and run either across the entire check or through the top left corner of the check. The presence of this double line notation indicates that the check can only be deposited into a bank account in a straightforward manner.

What Are The Factors That Lead To A Check Being Dishonoured?

If the banks give the amount to the payee, then the cheque is considered to have been honoured. On the other hand, the cheque is said to be “dishonoured” when the payee is denied the amount that was written on it by the bank. To put it another way, dishonour of check refers to the situation in which the bank does not pay the amount of the check to the payee as instructed on the check.

What Exactly Is The Function Of A Cheque?

A cheque is a financial instrument or document that instructs banks to transfer money from one bank account to another. Cheques are most commonly used in the United Kingdom and Canada. The individual who creates and signs the check is referred to as the drawer, while the payee is the name given to the recipient of the funds in the check.

Content Summary

• The following is important information regarding the use of your cheques.
• A written instruction to NAB to pay a specified amount of money on demand can be given in the form of a cheque.
• Check access is available through a selection of NAB’s banking services.
• The following characteristics apply to you if you have access to cheques: Are you interested in learning more about bank checks?
• When NAB receives your cheque for payment: it is deemed to be a request by you to NAB to withdraw funds from your account for the amount shown on the cheque; it is an authority to pay those funds to the payee of the cheque or the payee’s bank; and if there are not enough cleared funds in your account, NAB may dishonour or pay the cheque at its discretion.
• When you deposit a check, it usually takes three business days for the proceeds to become available in your account as cleared funds.
• The process of clearing a check typically consists of the following steps: first, you deposit a cheque that you have received into your NAB account; second, we will seek the cheque from the bank on which the cheque is drawn; and third, the bank will pay the proceeds of the cheque to your NAB account.
• In most cases, you will not be able to withdraw the value of a check that you deposit until the check has been cleared, despite the fact that your account will be credited with the proceeds of the check immediately after the check is deposited.
• If you “cross” a check (by drawing two parallel lines from top to bottom across the front of the cheque), you are indicating to NAB that the check should not be cashed over the counter.
• If NAB were to cash a crossed check, the company could be held liable for any losses incurred by the legitimate owner of the check.
• ,’You may write the words ‘not negotiable’ between the two parallel lines on your cheque.
• ‘Between the two parallel lines that are already present on your check, you also have the option of writing “account payee only.”
• When you use these words, you are instructing a bank that will accept the check to make the payment solely to the bank account of the person who is named on the check.
• If NAB negligently pays the proceeds of the check to a person who is not the payee, the bank could be held liable to the person who is legally entitled to own the check.
• Even if the check is written to “account payee only,” the transfer of the check is still possible.
• The phrase “or bearer” indicates that the bank that the check is drawn from is authorised to pay the amount of the check to the person who is in possession of the check, regardless of whether that person found the check or stole it.
• If you want to change this position, the easiest way to do so is to cross out the words “or bearer,” which will bring about the desired change.
• Alternatively, you may notify any branch of NAB, either in person or by phone.
• NAB can stop payment of a cheque only if the:The cheque has not been presented for paymentdetails you provide are accurate (for example, the cheque number(s) are correct).No matter how you choose to notify NAB, it is essential to tell us quickly if you want to stop payment.
• It is essential to identify the cheque by providing: the account name and number, the cheque number and amount; the date of the cheque; and to whom the cheque is payable.
• Log in to NAB Internet Banking with your NAB Identification number (ID) and NAB Internet Banking password.
• Select the account to stop the cheque payment from the Select account drop-down list.
• Select why you want the cheque stopped from the Reason for stopping the cheque drop-down list.
• Select either:single cheque – Enter one cheque numberrange of cheques – Enter the first cheque number to stop and the last cheque number to stop.
• NAB may charge a fee for stopping payment on a cheque, and we will advise you of this fee when you request NAB to stop payment on it.
• Through NAB Internet Banking, you will have the ability to reorder a cheque or deposit book.
• When you are using NAB Internet Banking, navigate to the Accounts section and then select the Re-order Book option.
• If you do not already use the EBD specific deposit book, please discuss ordering options with the bank branch or teller at your financial institution.
• Between the hours of 9 p.m. and 4 a.m. inclusively, Australian Eastern Standard Time (AEST) and Australian Eastern Daylight Time (AEDT), re-orders on cheques or deposit books cannot be placed through any channel, including NAB Internet Banking.
• The unauthorised alteration of your chequesWhen you write a check, you should take precautions to reduce the likelihood that the check will be forged or fraudulently used.
• Your check may be returned to you by NAB as “dishonoured” or “returned unpaid,” depending on the circumstances.
• Third-party chequesIt is referred to as a third party cheque when a cheque is presented to be paid into the account of a person who is not the person who was nominated as the payee on the cheque.
• NAB will investigate thoroughly to determine, regardless of whether the check is open or crossed, if the bearer is legally permitted to possess the check.
• PurchaseWe are able to purchase the check from you and pay you the amount of the check in Australian dollars or another currency, less any fees that may be applicable.
• If this happens after we’ve bought a cheque from you, you’ll be liable for the cost of the dishonoured cheque.
• Check out our foreign exchange rates calculator for more information on the exchange rates that we apply when converting cheques written in a different currency.
• If you go to the bank that issued the check, you will be able to cash the check even if you do not have a bank account.
• For instance, if someone sends you a cheque from Bank X (as written on the cheque), and you see Bank X, Bank X will most likely let you cash the cheque as long as the person who wrote the cheque has sufficient funds in their account.
• This is the case even if the cheque is written from a different bank.
• Can you deposit money into somebody else’s bank account?Depositing money is widely regarded as one of the least complicated and most straightforward aspects of banking.
• If that’s what you want to do, you can even put money into the bank account of another person.
• Because the BSB will identify this for you, it is not necessary to include the name of the financial institution, which is especially helpful when conducting online banking transactions.
• Going into a branch of your bank and handing the cash over to a teller is the time-honored method of making a cash deposit into your account.
• The majority of financial institutions today enable their customers to make deposits using automated teller machines (ATMs).How can you cash a cheque without a bank account?If you go to the bank that issued the check, you will be able to cash the check even if you do not have a bank account.
• However, this is only the case if you visit Bank X in person.
• The person who is drawing the check has the option of crossing it either generally or specially.
• If the check is open, the holder has the option of writing a general or special notation on the back of the check.
• The holder of the check has the ability to cross it again after it has been crossed generally.
• In the process of writing and cashing a check, there are three parties involved.
• The person or organisation that creates the cheque is referred to as the drawer.
• The drawee is the financial institution, and the payee is the person or organisation that ends up with the cheque.
• A check is considered to be crossed if it contains two lines that are parallel to one another and run either across the entire check or through the top left corner of the check.
• On the other hand, the cheque is said to be “dishonoured” when the payee is denied the amount that was written on it by the bank.
• To put it another way, dishonour of check refers to the situation in which the bank does not pay the amount of the check to the payee as instructed on the check.