By John Leyden for The Register. This
story was reproduced with permission.
The new 2-4-6 cheque clearance rules mean that payment by cheque
is not guaranteed until the seventh working day after a cheque has
been presented to a bank for payment. This means that even if a
payment looks to have cleared an account on day 4, the money is not
safe until close of business on day six.
So anyone accepting payment for goods by cheque should hold off
dispatching merchandise until seven working days after a cheque has
been presented for payment, unless the payment has first been
screened by a reputable fraud screening service or secured by a
cheque guarantee card.
The new rules are of particular relevance to goods sold on
auction sites and purchased by cheque.
Anti-fraud experts welcomed the changes as a clarification of
the sometimes complicated cheque clearance process, even though it
may lead to an increase in dispatch times where cheques are used as
a payment method.
"The new 2-4-6 rules give a guarantee that on day seven a
retailer or member of the public can dispatch goods with the
certainty that the money is cleared funds in their bank account,
and can not be clawed back unless the payee is a knowing party to
fraud," said Andrew Goodwill, director of anti-fraud service 3rd
Man. "I await the day when we receive this type of guarantee for
credit card payments," he added.
© The Register
2007
