What is a non-transferable cheque?
Two lines with or without the words ‘non-negotiable’ or ‘non-transferable’ written between them means the cheque cannot be cashed but must be deposited into a bank account. ‘Non-transferable’ means it must be paid into the account of the person or company whose name appears on the cheque.
How do you render a cheque completely non-transferable?
Suggestion: If you want to mark a cheque “NOT TRANSFERABLE” make sure that you inscribe the instruction boldly across the face of the cheque (preferably by using a rubber stamp with red ink). Also make sure that you make it out in the full and correctly spelt name of the person you want to pay.
What are the different types of crossing cheques?
Here are different types of cheque crossings and their effects;
- General Cheque Crossing. Under general cheque crossing, the crossing is done by drawing two parallel transverse lines across the cheque.
- Special Cheque Crossing.
- Restrictive Crossing or Account Payee’s Crossing.
- Not Negotiable Crossing.
What is non account payee cheque?
The bearer cheque does not contain the name of the payee and is payable to the person who presents it at the bank. A crossed cheque is a cheque drawn in favour of a specific person and the cheque contains two slanting parallel lines at the left upper corner of the cheque.
Can you bank a cheque in someone else’s name?
You simply had to write the name of the person on the back of the cheque and that was it – job done. So, this makes it a risk on the bank’s behalf to accept a crossed cheque into the bank account of someone other than the name printed on the front and as a general rule of thumb, they just do not accept them.
Can I give my cheque to someone else?
Write “Pay to the Order of” and the Third Party’s Name Below Your Signature. It’s important to write the name of the person that you are signing the check over to in the endorsement area under your signature. This signals to the bank that you are endorsing the transfer of ownership for the check.
How do I cash someone else’s cheque?
If the cheque is not crossed, then your friend can write “payable to [your name]” above his signature when he endorses it. If it is crossed, you’ll have to deposit it into his account. Given that one can deposit cheques at ATMs, this shouldn’t require his presence. Just make sure he endorses it before you leave!
How can I cash a check that’s not in my name?
This would be done by having the payee endorse the check (sign the back) and below that write “PAY TO THE ORDER OF JOHN SMITH”, and then John Smith can endorse and then cash or deposit the check.
How can I deposit a check that is not in my name?
To perform this transaction, on the back of the check the payee signs, then writes “pay to the order of” and the name of the third party. This new payee can now endorse the check and deposit it.
What makes a cheque a transferable cheque?
The three types of cheques mentioned above are referred to as “transferable”. This means that those cheques can be passed on (transferred) by the person to whom the cheque is made out (the “payee”) to other persons, who then become entitled to receive payment on the cheque.
What does it mean when a cheque is non negotiable?
‘Non-transferable’ means it must be paid into the account of the person or company whose name appears on the cheque. ‘Non-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.
Can a cheque be passed on to another person?
This means that those cheques can be passed on (transferred) by the person to whom the cheque is made out (the “payee”) to other persons, who then become entitled to receive payment on the cheque. If I make it out to “J P Smith” and mark the cheque ” NOT TRANSFERABLE ” my instruction is that only J P Smith may be paid.
Can a cheque made out to a bearer be cashed?
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). If you do not want the cheque to be negotiated between various parties you can restrict negotiation by adding the words “Not Transferable”.