Thread: Bank cheque or direct debit

Cash is always the best option, but is discouraged by the banks (read up on fractional reserve banking) as they do not want money outside of their system.

Bank cheques believe it or not, can be reversed, but with a traceable item such as a caravan I would have no problem with accepting it.

Bank cheques usually cost you money. NAB charge $12 and the other party probably has to pay something to deposit.

A bank transfer via internet banking will be constrained by your daily EFT limit, but you should be able to do more talking to a real person on telephone banking.

Originally Posted by cava

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Bank cheques believe it or not, can be reversed, but with a traceable item such as a caravan I would have no problem with accepting it.

Can only be reversed if the person cashing the cheque authorises it. Spoke to the bank about this this morning.

Fuzzie, GJ is talking about accepting a bank cheque in exchange for his caravan.

So, it would be the purchaser that has to pay the bank cheque fee, and no I have never had to pay to deposit a bank cheque in to my account.

Originally Posted by Grumpy John

Can only be reversed if the person cashing the cheque authorises it. Spoke to the bank about this this morning.

Not from what I have been told, by an associate who was scammed.This was current circa 2 years ago.

Large sums of cash are bloody dangerous. A mate of mine wished to sell an engagement ring. Good stuff and big money. The buyer offered cash, mate agreed, they met, goods and money exchanged. As my mate returned to the car he was stabbed in the back , as too was his father who had accompanied him. The father survived and was able to identify the attackers. My mate was not so fortunate.

Originally Posted by Grumpy John

Can only be reversed if the person cashing the cheque authorises it. Spoke to the bank about this this morning.

Must have changed since I worked for such venerable institution for I have stopped payment on a bank cheque we issued at the purchasers request. Of course the bank got security from the purchaser for its action but we could not deny him.

I would double check with the bank to make sure that it is no longer possible.

Peter.

Originally Posted by Sturdee

Must have changed since I worked for such venerable institution for I have stopped payment on a bank cheque we issued at the purchasers request. Of course the bank got security from the purchaser for its action but we could not deny him.

I would double check with the bank to make sure that it is no longer possible.

Peter.

Unless I totally misunderstood the bank officer, the funds cannot be reversed without the payees authority. The bank may be able to stop/hold payment if in dispute, but cannot reverse payment. I will phone again and get confirmation.

John,

The proceeds of a cheque lodged in your account is not available until cleared. This requires your bank to actually physically present the cheque to the bank and branch that issued it. Then the bank has 24 hours to decide if it will honour the cheque.

Until honoured the purchaser can demand that payment be stopped. This the bank would do if it received sufficient idemnity.

So the payee has no say in it and normally the assumption is that a bank's own cheque is as good as cash but it may not be correct, at least in my days it wasn't.

You of course will have redress through the courts as you gave proper value for it but this could take a while and be costly. This is a worst case scenario so I would suggest that the purchaser be required to deposit cleared funds into your account before passing over the van.

Peter.

Originally Posted by Sturdee

John,

The proceeds of a cheque lodged in your account is not available until cleared. This requires your bank to actually physically present the cheque to the bank and branch that issued it. Then the bank has 24 hours to decide if it will honour the cheque.

Until honoured the purchaser can demand that payment be stopped. This the bank would do if it received sufficient idemnity.

So the payee has no say in it and normally the assumption is that a bank's own cheque is as good as cash but it may not be correct, at least in my days it wasn't.

You of course will have redress through the courts as you gave proper value for it but this could take a while and be costly. This is a worst case scenario so I would suggest that the purchaser be required to deposit cleared funds into your account before passing over the van.

Peter.

The information I was given was based on the payer and payee using the same bank, i.e. Commonwealth.
As i said, I will follow this up on Monday.

Perhaps for large sums, both could go to the payers bank and the seller open an account right then and there. Have the bank transfer cash to the new account.

With bank cheques, they clear no differently than any other instrument (cheque). They can be stopped, bounced, subject to hold, special answer and dishonoured no differently than any ordinary cheque.

I wouldn't have any concerns about accepting a bank cheque, circumstances when one is bounced are incredibly rare. It's relatively easy to have your daily transfer/withdrawl limit increased by your bank. If the buyer can do a transfer on the spot and show you the receipt for the transfer check the details carefully and you should be home and hosed. You will have the buyers details, if the hairs stand up on the back of your neck when you're dealing with them pay attention and err on the side of caution.

I'd go with the bank cheque plus a copy of their licence. Electronic transfer would be ok, provided the money is cleared into you account before handing over the caravan, hence their risk.

Your selling your van?

Originally Posted by dai sensei

I'd go with the bank cheque plus a copy of their licence. Electronic transfer would be ok, provided the money is cleared into you account before handing over the caravan, hence their risk.

Your selling your van?

Yep, downsizing to one of these.