Important tips for the use of cheques

4 December 2006

A cheque will be handled by many people from the time you write it out to the time it is presented to your bank for payment.

This means that there are many opportunities for the cheque to be intercepted.

As part of the Absa Fraud Awareness Week, Absa has compiled the following tips

Chequebook:

• Write your cheque in such a way that it is difficult to alter
• Write clearly and neatly using a non-erasable ballpoint pen
• Write the full names of the payee and spell them correctly
• Do not make any corrections to the cheque, it is best to cancel it and write out another one
• Don't leave large spaces between words and draw a line through any unused space to ensure that nothing can be added to the cheque
• Write the amount of the cheque in the space immediately after "The sum of"
• Write the amount in figures as close to the 'R' as possible
• Fill in the correct date
• Remember to sign your cheque

What else can you do to keep your cheques safe?

• Keep your chequebook, cancelled cheques and statements in a secure place
• Never sign a blank cheque
• Report lost or stolen cheques IMMEDIATELY and visit your nearest Absa branch to fill out a stop cheque form
• Provide your bank with up-to-date signatures of everyone who is entitled to sign cheques on your account
• Check your statements every month and do a reconciliation
• It is safest to collect your new chequebook yourself 

The way you make your cheque payable can protect you

• Cheques where the words "Or Bearer" are not crossed out are as good as cash and can be cashed by anyone who presents it even if it was made out to a person or company.

How does crossing your cheque protect you?

• Two lines with the words 'not negotiable' or 'not transferable' written between them means the cheque cannot be cashed but has to be deposited into a bank account
• A crossing cannot be cancelled
• 'Not transferable' means it must be paid into the account of the person or company whose name appears on the cheque
• 'Not negotiable' means it must be paid into a bank account but the person to whom the cheque was originally made out to may transfer it to a third party by signing the back of the cheque, which is known as "endorsing the cheque"
• Unless you make a cheque out as "cash" it is advisable to always cross your cheques by writing the words "Not transferable" between two parallel lines. This is the most restrictive form of crossing and is likely to provide you and the payee with the best form of protection against another person trying to obtain value for the cheque

It is not advisable to post a cheque

• If you must send it via post make sure cheques are crossed, marked 'not transferable' and made payable to a specific person or company
• Send cheques by registered mail and in good time to allow for delivery delays
• Staples or paperclips attaching a cheque to a letter are all tell-tale signs for criminals that there is a cheque in the envelope
• Avoid envelopes that are transparent or easy to open

When accepting a cheque make sure that:

• it has not been altered
• it isn't post-dated
• it is signed
• the same pen has been used throughout
• the handwriting is the same on all parts of the cheque
• do not immediately release any goods or items of value when receiving a cheque as payment. Always wait for the cheque to clear before releasing goods paid for by cheque, even if it is a bank cheque. Remember, even bank cheques can be stolen and altered. It is a common misconception that bank cheques may not be stopped. This is incorrect. If a bank cheque is stolen it will be stopped and returned unpaid to whomever deposits it.

Important Notes

If your chequebook or a cheque is ever lost or stolen, visit your nearest branch IMMEDIATELY to have it cancelled