How long does it take to clear a cheque?
It normally takes three to five 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.
Different CUs would have accounts in different banks, not all the same one and they could have accounts in more than one so cheques would go through whichever one they were lodged in. Years ago they would have been big investors across different institutions too when interest rates were higher.I had no idea Credit Union accept cheques. Just out of curiosity, which bank clears these cheques?
KBC cheques are cleared by Ulster Bank, which is ironic.
KBC were not full members of the clearing so had to "hang" off Ulster in an Agency Agreement. Aside from the big banks you would expect, the other full members are Danske (which still have a presence down south), HSBC, Central bank, Barclays, BNP and Bank of America. Everybody else has to enter an arrangement with the member banks, have accounts as customers to manage fund transfer and that adds an additional day to the timeframe.I had no idea Credit Union accept cheques. Just out of curiosity, which bank clears these cheques?
Do Credit Union issue their own cheques?
KBC issued cheques are cleared by Ulster Bank, which is ironic.
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