Am I right by thinking you can 'Fast Track' a cheque?
Discussion
Yes, it is a CHAPS payment. It costs £20 and the money clears the same day.
or
Special Cheque Presentation - A cheque paid into your account sent direct to another branch or bank for payment
Normally this service is used to find out earlier if a cheque is going to be paid, although it doesn't speed up the clearing process, typically £10.
or
Special Cheque Presentation - A cheque paid into your account sent direct to another branch or bank for payment
Normally this service is used to find out earlier if a cheque is going to be paid, although it doesn't speed up the clearing process, typically £10.
ultimasimon said:
Although funds drawn from an illegal or fraudulent cheque can be asked to be repaid by the bank even after it has been 'cleared'. Sometimes after ten days of more.
Cheques are a very dodgy thing
Quite right, this isn't the case with CHAPS though, hence the hefty cost.
It's used in conveyancing for the transfer of purchase/sale price so is safe.
Muncher said:
Although funds drawn from an illegal or fraudulent cheque can be asked to be repaid by the bank even after it has been 'cleared'. Sometimes after ten days of more.
Cheques are a very dodgy thing
Quite right, this isn't the case with CHAPS though, hence the hefty cost.
It's used in conveyancing for the transfer of purchase/sale price so is safe.
Ok you already know where I was coming from with this.. but in a sitatuion of risk, why don't banks advise customers of the risks and therefore ask or recommend them to use CHAPS for all payments over a certain limit i.e. £1000 ?
Shirly if they make their customers aware of the risks they stand a batter chance of keeping them, rather than having to go through all the hassle when things go wrong?
After all, mortgages and other financial institutions are governmed by FIMBRA, LOUTRO, the FSA etc, and mortgages have statements like, "Your home is at risk if you do not keep up repayments" etc so why no warning about the risks assoicated with cheques?
Strange me thinks
Good question 
There must be a reason why the banks make more money with the present system and are in no hurry to change it. The cheque clearing process is already laboured and takes far too long. Ever for £1k payments I doubt most people would be willing to pay for a CHAPS payment, which is less simple to initialise.
There must be a reason why the banks make more money with the present system and are in no hurry to change it. The cheque clearing process is already laboured and takes far too long. Ever for £1k payments I doubt most people would be willing to pay for a CHAPS payment, which is less simple to initialise.
Maybe as someone had already mentioned in the other thread, a 'general fraud banking isnurance' could be applied as a small percentage to cover against this 
Cheques are so Testarossa, maybe with the advent of the new 'chip and pin' they could do instant transfers from one account to another for a reasonable fee - say £5? and guarantee the transaction as well. That would pretty much make cheques obsolete.
Oops sory pwig, I just hijacked your thread
Cheques are so Testarossa, maybe with the advent of the new 'chip and pin' they could do instant transfers from one account to another for a reasonable fee - say £5? and guarantee the transaction as well. That would pretty much make cheques obsolete.
Oops sory pwig, I just hijacked your thread
I think the reluctance of the bank to guarantee cheques is that it will leave the banks so wide open to fraud themselves. Difficult and time consuming to investigate.
Hypothetically speaking if the 419 scam were to be carried out, the scammers would still profit and account holders could also profit by engineering such a situation fraudulently which would be impossible to trace.
CHAPS works as the use of it is restricted, the volume of the transactions are low and payments are between UK/EU banks.
I guess the banks are also reluctant to alter the cheques system as it is clearly on the way out.
Hypothetically speaking if the 419 scam were to be carried out, the scammers would still profit and account holders could also profit by engineering such a situation fraudulently which would be impossible to trace.
CHAPS works as the use of it is restricted, the volume of the transactions are low and payments are between UK/EU banks.
I guess the banks are also reluctant to alter the cheques system as it is clearly on the way out.
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