Cheques
Skip to: Why Have Cheques? Using Cheques Retailer Charges
Why Have Cheques?
A Cheque Book gives you customers the ability to make payments to retailers, utilities and others by cheque, as an alternative to paying with cash or by account transfer. A cheque is simply an instruction for the bank to make payment, to the person named, from your account.
The primary advantage to the holder of having cheques is that it removes the necessity to first draw cash at the bank before making a payment. This is particularly useful when shopping outside banking hours.
For the person or business accepting the cheque there are also a number of advantages:
Customers are able to make payments outside banking hours when they do not have cash to hand;
Customers are able to make payments by post without the need to mail cash;
Cheques are easier to manage than cash and, because they can only be credited into the designated bank account, are less likely to be stolen.
Cheques can be used to make payments to businesses, other organisations and individuals. The only requirement is that the person or organisation you are paying must have an account at the Bank of St. Helena.
The bank currently makes no charges for processing cheques, and has also waived the fee for issuing cheques until 31st March 2008.
Eligible Accounts
Cheques can only be issued against a Current Account.
Using Cheques
Before you write a cheque
Before you write a cheque to make payment, please make sure you will have sufficient funds in your account to pay the cheque when it is presented.
Businesses are likely to refuse to accept cheques from people who frequently write cheques that are not paid.
How to correctly complete a cheque
The format of the bank's cheques is as shown below.
To be correctly completed:
It must be written on a proper bank cheque form. Photocopied pages, for example, are not acceptable;
The 'Pay' line must contain the name of the person or business into whose account it is to be paid;
The amount in words must match with the amount in figures;
The cheque must be signed by the person whose name appears on the cheque form. (If the person or organisation accepting the cheque does not know you personally they may ask for proof of identity)
The date should be today's date. (Special circumstances apply to posted cheques, which are discussed in the detailed information leaflet).
Nothing else must be written on the face (front) of the cheque.
If you are writing a cheque in a shop you may be asked to put additional information on the back of the cheque. Similarly, if paying a bill by post you may be asked to put information, such as your address or utility account number, on the back. This information is used by the shop or utility and not by the bank.
If you receive a cheque
You should always ensure that a cheque you accept has been correctly completed (see above) and you should then store the cheque in a safe place until you can take or send it to the bank (remember: the cheque represents money, so treat it accordingly).
You can take or send a cheque to any office of the Bank of St. Helena for payment. This can be done at the counter, whenever the bank counter is open. You may also send cheques to the bank by courier or by post, accompanied by a correctly completed paying in slip, a copy of which can be downloaded below.
Cheques you accept can only be paid into your Bank of St. Helena account. The money will be credited to your account, normally on the day the cheque is presented at the bank.
Retailer Charges
It has come to the bank's attention that a few retailers and other outlets have asked customers to pay a commission for the use of Bank of St. Helena cheques. This results from a misunderstanding on the part of the counter staff at the outlet.
It is common for outlets in St. Helena to accept UK (Sterling) cheques, but these need to be remitted to the UK for payment and a charge is usually made to cover the costs of this. There is no reason why this charge would be levied on a Bank of St. Helena cheque, as there is no processing cost to the outlet.
If you are asked to pay commission on use of a Bank of St. Helena cheque please query this with the outlet and, if necessary contact us.
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