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Thread: Euro cheque

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    Default Euro cheque

    Maybe Nattie can help clarify this please.

    Ive been advised that a Euro Bank cheque when paid into a sterling account can take 6 to 8 weeks to clear.

    Have been informed that such cheques need to go to collections, and the clearance time depends on how quickly the foreign bank processes the cheque.

    As the foreign bank in question received payment before issuing the cheque I dont understand why 6 - 8 weeks has been quoted.

    What is the process for converting euro cheques, and crediting a sterling account.

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    Default Re: Euro cheque

    Which bank quoted six to eight weeks?

    I have had quotes of "up to 28 days" before, but most transactions are completed within ten days.

    What about opening a Euro account?

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    Default Re: Euro cheque

    I did normally quote 28 days and as Cetelco has said it should be quicker depending on where the cheque is drawn on. With regards to a euro account, if you get a lot of cheques in euros it maybe worth opening an account as cetelco has said, but if it is only one cheque then it wouldn't be since you are charged to process the cheque, charged to withdraw the money from it and get no interest on the cheque.

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    Default Re: Euro cheque

    Its a one off cheque thats been paid into HSBC, HSBC say they dont charge existing customers any charges or commission etc, and that the market rate will be used to convert the euro cheque when its credited to a sterling account.

    Its not as if the cheque is a personal one, which I imagine would take longer to clear. Its a bank cheque that the foreign bank were paid for it before issuing it.

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    Default Re: Euro cheque

    Quote Originally Posted by CYNthesys View Post
    Its a one off cheque thats been paid into HSBC, HSBC say they dont charge existing customers any charges or commission etc, and that the market rate will be used to convert the euro cheque when its credited to a sterling account.

    Its not as if the cheque is a personal one, which I imagine would take longer to clear. Its a bank cheque that the foreign bank were paid for it before issuing it.
    I assumed you were processing it through your personal bank account, is that not right?

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    Default Re: Euro cheque

    Nattie its a euro cheque (bank cheque) that I paid into my personal HSBC current account. About 4 days after I had paid it in HSBC sent me a letter saying that the cheque was being sent off for collection and that I could expect the sterling equivalent to be credited to my account within 6 - 8 weeks.

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    Default Re: Euro cheque

    Quote Originally Posted by CYNthesys View Post
    Nattie its a euro cheque (bank cheque) that I paid into my personal HSBC current account. About 4 days after I had paid it in HSBC sent me a letter saying that the cheque was being sent off for collection and that I could expect the sterling equivalent to be credited to my account within 6 - 8 weeks.
    Their site is absolutely confusing to be honest and it seems to suggest regular payments in euros would be worth opening another account but to be honest the site is difficult to navigate.

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    Default Re: Euro cheque

    Do you know what "being sent for collection" actually entails?

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    Default Re: Euro cheque

    With NatWest you get collections or negotiation. On one of them you credit the account and then get the money and the other one you wait for the money and then credit the account. Blimey, I am starting to lose my knowledge of banking on this sort of thing that was almost concreted into my head.
    Collections would be waiting for the payment to be sent to the bank and then processed onto the account.
    NatWest Handling Drafts and Cheques

    The above is how NatWest explain it. I couldn't find the HSBC equivalent.

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    Default Re: Euro cheque

    Hi Nattie, I actually had 2 cheques , one was a very small one that was "negotiated" and the funds were credited to my account 2 days later.
    Dont know though what there was to negotiate, because as it was only for a small amount the cheque appears to have been converted at the bank's buying rate, in the same way someone would convert surplus euros back into sterling that they may bring back from holiday.
    The larger cheque had to be sent for collection, and I do not understand why I am having to wait so long for it to be cleared.
    The Bank cheque was bought on 22nd January, It was sent to me by courier on 1st February, and I received it on 3rd February and paid it into my account on 4th February.
    Surely some sort of courier service is used when banks send foreign cheques for collection.
    I could be wrong but I would have thought the foreign bank would have received the cheque within 2 or 3 days, would have been able to release the funds immediately and then arrange for the customers bank to be credited. So where they get 6 - 8 weeks from Ive no idea

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    Default Re: Euro cheque

    Most banks use normal mail so no they wouldn't send them by courier service.

    I have known foreign banks to sit on cheques and do absolutely nothing with them for ages. I have spent more than 3 months on one occasion which far exceeds the timespan I would expect it to be dealt with. The 6-8 weeks timescale is in all likelihood worst case scenario to be honest.

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    Default Re: Euro cheque

    Hi Nattie
    Thanks for your help.
    Ive got one final question - Do the Banks have any tracking system in place in relation to the processing/conversion of foreign cheques?

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    Default Re: Euro cheque

    Quote Originally Posted by CYNthesys View Post
    Hi Nattie
    Thanks for your help.
    Ive got one final question - Do the Banks have any tracking system in place in relation to the processing/conversion of foreign cheques?
    Not that I am aware of but they do have systems in place to chases up cheques that have not been processed within the set period that they have given.

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