EQUIFAX
IMPORTANT: if you are sending a business cheque we need your telephone number. Not sure if your cheque needs
a telephone number? Then write in on the back anyway.
EQUIFAX is a cheque guarantee
company. They were once called TRANSAX, the holding company
is CERTEGY, their web site is http://www.equifax.co.uk
We telephone them with your cheque
details, they 'guarantee' the cheque. This means that if the
cheque is returned EQUIFAX pay us the money; that means we can
send the goods immediately without having to wait for the cheque
to clear (in fact, we usually send the goods before we have
even banked the cheque).
The service is for all business
and personal cheques (any cheque you write yourself) with one
exception: a Credit Card cheque (e.g. SAGA, CAPTIAL ONE and some
HALIFAX).
These cheques are part of a 'payment system' (they call it a 'Courtesy
Service') linked to a credit card. As far as you are concerned
you are making a credit card payment, as far as we are concerned
it's an just another cheque - but one that does NOT pass through
the bank clearing system and CANNOT be guaranteed by EQUIFAX.
If you send us one of these cheques you will have to wait two
calendar weeks for it to clear.
EQUIFAX's RULES ARE: The cheque account
must be with a U.K. bank; if the
cheque is a Business Cheque your telephone number must be written
on the back (a landline number if at all possible).
OUR RULES ARE: If EQUIFAX does
not guarantee the cheque you must wait for it to clear in the
normal way.
YOU SHOULD ALSO KNOW THAT if
your cheque is returned unpaid we must provide EQUIFAX with
your name and address and EQUIFAX will record this information
and use it to decide whether to guarantee your present and future
cheques. Equifax may share their information with their
Credit Reference division and subscribers to their Credit Reference division in order to:
- evaluate applications for credit made by you and family members of
your household
- manage credit facilities held by you and family members of your household
- contact you to recover any debt owed
- prevent fraud
EQUIFAX will charge you a fee
if your cheque is dishonoured.
HOW LONG DOES IT TAKE FOR A CHEQUE TO CLEAR?
Some people say,
"There's no hurry, allow three days for my cheque to clear
then send the goods".
Wrong!
It takes, typically,
four working days but sometimes much longer for a cheque
to clear (source, Moneybox,
BBC). Then it can take another 3 to 4 working days for the
bank to tell us that the cheque has not cleared.
Altogether: about two calendar weeks,
and this is from the time we pay the cheque into the bank, not
from the time you write or post the cheque.
DETAILS
Let's
suppose we pay your cheque into the bank on a Tuesday.
Tuesday
is Day 1. At the close
of day on Tuesday the bank sends your cheque to its clearing
centre. Within a few hours the cheques are processed
and sent to the Clearing Exchange Centre in London, it's now Wednesday, Day 2. The cheque is processed again and sent back
to your bank, it arrives
on Thursday, Day 3. Your
bank manager has until noon on the following day, Friday, Day
4, to decide whether to return the cheque.
Returned cheques are posted to my bank (by ordinary mail)
to arrive the following day, in this case Monday, Day 5; and
my bank informs me (by ordinary mail) - and that takes another
day, taking us to Tuesday, Day 6.
However, there are often delays in the post so that the
returned cheque might not reach me until Wednesday, Day 7, or
Thursday, Day 8, and
we did have one cheque that was returned to us on the 9th working
day, two days after we had posted the goods.
Upon complaining to the bank we were told that the cheque
was 'within time' and that 'there must have been delays in the
post'.
This
is why we SHOULD wait nine working days from the date we bank
a cheque in order to be certain that it has cleared.
In practice it is unlikely that a cheque will take nine working
days to clear; in practice we do check our bank account regularly;
so in practice we 'mark forward' the dispatch date two
calendar weeks from the day we anticipate banking the cheque.
A LEGAL POINT
Strictly
speaking a cheque never 'clears' - you can pay a cheque into
your account and the money can be taken back by the bank weeks,
months or years later. The reassurance from the bank is,
"This is most unlikely to happen". This does
not impress solicitors who accept cheques for hundreds of thousands
of pounds for property transactions.
NOT GOOD ENOUGH!
JUNE 2003: Paul
Driver, director of APAX, the banks' clearing system, "We
are putting an infrastructure in place which will enable same-day
payments to take place...the plan is on track for early 2005."
JUNE 2004:The Governor of the Bank of England in a speech
at Mansion House, "It is disappointing that the UK now takes
longer to clear payments, whether cheques or electronic payment,
than almost any other member of the G10...the bank will actively
explore ways that performance can be improved"
MAY 2005: Chief Executive of APAX, Paul Smee,
"By November 2007 I am confident that there will be a robust
reliable system covering most of the banks dealing with telephone
and online banking payments."
(Source: MONEYBOX,
BBC Radio 4)
PAYMENTS FROM OUTSIDE THE U.K.
A cheque that you write yourself (personal or business,
including company cheques) takes a few weeks to clear, most bank
drafts / cashiers cheques (cheques issued BY a bank) do not need
to be cleared but with large amounts of money we always
wait three or four days so that the bank can check that the draft
is genuine.
WHAT ABOUT TRANSFERRING
THE MONEY DIRECTLY?
If you have access to your bank account
over the Internet, then you are able to transfer money to other
accounts, click here for
our bank details.