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How long does it take to clear a cheque?
It normally takes three business days to clear a cheque if it is drawn and payable on a member bank of the Irish Paper Clearing Company Limited (IPCC). The cheque is lodged on Day One. It is exchanged with the bank on which it is drawn on Day Two. The customer on whose account the cheque is drawn is debited on Day Two or Three.

In the event that  the cheque is to be returned unpaid for any reason, it will be returned by close of business on Day Four to the payee’s bank. It will therefore be Day Five before the payee’s bank knows that the cheque is being unpaid.   

 
While the clearing cycle normally takes three days, certainty of payment can actually take up to five or six days. Depending on a particular bank's policy in relation to risk control, customers are not always permitted to draw down the funds ahead of this timeframe, in order that the bank may be certain that the cheque will not be returned unpaid.

If your bank or building society is not a member of IPCC, you should contact it directly to confirm its clearing cycle.

Can cheques be stopped?
A stop can be placed on a cheque provided it has not already been paid. The bank should be contacted with details of the particular cheque, i.e. the date of issue, cheque number, the amount and the payee.

Do cheques go out of date?
It is the practice of banks in the Republic of Ireland to decline cheques which are presented for payment six months (or later) than the date of the cheque.

Must a cheque be lodged to the named payee on the cheque?
In some circumstances cheques may be endorsed over to a 3rd party by the named payee. However, in many cases cheques are crossed (e.g. not negiotiable, account payee only, & Co.) and these should not be lodged to third party accounts.

Is there a cross-border cheque clearing service?
There is no centrally managed cross-border clearing system in operation for cheques and so it is strongly recommended to use electronic payments for accepting or making cross-border payments. Cheques drawn on foreign countries lodged in a bank in the Republic of Ireland may take a considerable time to clear (check with your bank) and may be returned unpaid in accordance with the legislation and/or clearing rules in place in the country in which the cheque is drawn. For some countries this can be at any time in the future. If the cheque is denominated in another currency, the beneficiary will be exposed to exchange rate fluctuations until the value for the cheque is received.

What is the difference between a cheque and a bank draft?
A bank draft is similar to a cheque, with the primary difference being that it is drawn on a bank rather than a customer account. Because of this, bank drafts have a certainty of fate in that they will not be returned unpaid unless they have been counterfeited, fraudulently altered or stolen. It is for this reason that it can be a preferred method of payment instead of a cheque. However, it should be noted that the value clearing cycle for a bank draft is usually the same as that for a cheque. Of course, an electronic credit transfer is generally quicker and more cost-efficient to process than a bank draft.

As a company, can I design my own cheque?
Yes, you can design your own company cheque. Click here for Recommended Guidelines for Printing and Using Company Cheques in the Republic of Ireland.

 

In the event that there are insufficient funds in the drawer’s bank account to meet the cheque it will be returned unpaid by close of business on Day Four to the payee’s bank. It will therefore be Day Five before the payee’s bank knows that the cheque is being unpaid. While the clearing cycle normally takes three days, certainty of payment can actually take up to five days. Depending on a particular bank's in-house policy in relation to risk control, customers may or may not be permitted to draw down the funds until day five.If your bank or building society is not a member of IPCC, you should contact it directly to confirm its clearing cycle.

 

Why is cash so popular?
Cash has been around for hundreds of years, is universally accepted and is very convenient for small value transactions.

Has cash any disadvantages?
If cash is lost or stolen it cannot be cancelled or replaced. It is also very expensive to manage, transport and secure and can make holders of cash targets for criminals. Businesses also run the risk of accepting counterfeit notes.

Many retail businesses take in large volumes of cash. How can the security risks be reduced?

Prevention is better than cure – reducing the dependency on cash would be the best first step. Encourage other forms of payment. For instance, card transactions are processed directly to bank accounts. Offering cash facilities to customers, such as Laser Cashback, will help reduce the level of cash held.

 

Is cash free?

Cash is one of the most popular payment instruments. However it is also one of the most expensive. Although some banks may not charge to make withdrawals, there are many costs associated with cash. These include:

• Manufacturing
• Distribution
• Recycling
• Security
• Transport

 

Cash also attracts criminal activity. The cost to banks, to business, to the Government and to security forces are ultimately borne by the taxpayer and society in general. A shift from cash to electronic payments could ultimately increase Ireland’s economic competitiveness.

What countries use euro as their currency?

• Austria
• Belgium
• Cyprus
• Finland
• France
• Germany
• Greece
• Ireland
• Italy
• Luxembourg
• Malta
• The Netherlands
• Portugal
• Slovakia
• Slovenia
• Spain

Why is it safer to shop with cards?
Using debit and credit cards reduces the need to withdraw and carry cash - which can make for a safer shopping experience.

Why are people increasingly using cards instead of cash for many of their purchases?
Apart from the convenience, security and cost benefits of using cards, many card issuers offer additional benefits (e.g. purchase protection, travel insurance) for goods and services paid for with their cards.