Bankers Drafts - can someone explain?

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  • CruachanCruachan Posts: 7,211
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    susie-4964 wrote: »
    Sounds a bit odd, because if you query a transaction you've got to go through your bank, and they do spend quite a lot of time investigating these things, so they's surely find out if it was a fraudulent claim?

    We'll need to wait for Flossychick to enlighten us.
  • [Deleted User][Deleted User] Posts: 2,938
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    Imagine if you are looking through old credit card statements and you spot one that definately was not yours and you think it is fraud. You phone the company up and say this was not me. the company agree that it was a phone transaction and they investigate and find out that it was fraud and pay you back.

    The limit on this is 2 years to back date any transactions.

    I am sure if you were lying you will be found out by security questions but the company in question will have the monies taken out of their account until this is solved.

    As my company takes large amounts in one transaction and I live on the Costa Del Crime in Spain, I don´t need the maybe hassle of someone back tracking if they want to try to scam me and the temporary loss of monies in my account, investigation pending.

    My outlook on all the banking systems have changed for the worse after living here and unfortuntely crossinging paths with some unsavoury characters. Especially with all the mayors and some chief of police all locked up in the prisons for fraud.

    Loved sunbathing today though, sorry just want to keep it light hearted as all the doom and gloom is well depressing.
  • susie-4964susie-4964 Posts: 23,143
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    Imagine if you are looking through old credit card statements and you spot one that definately was not yours and you think it is fraud. You phone the company up and say this was not me. the company agree that it was a phone transaction and they investigate and find out that it was fraud and pay you back.

    The limit on this is 2 years to back date any transactions.

    I am sure if you were lying you will be found out by security questions but the company in question will have the monies taken out of their account until this is solved.

    All the times I've had fraudulent transactions, I've noticed very quickly, but if the banks did it any other way (say a 6-month limit), you'd have everyone screaming that they weren't being fair and they couldn't be expected to read through all their bank statements! I don't know about the companies having the money taken out of their accounts, but I do know I don't get my money back until they've finished investigating, and in the case of a transaction on a bank debit card, I don't get the interest either.
  • SystemSystem Posts: 2,096,970
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    beintot wrote: »
    Anytime i have used a bankers draft, 5 or 6 times, it is instant money,take it to the bank and get cash in your hand straight away.

    The experience may be different in some banks,but that is how i found it every time.
    Getting mixed answers here. Some say bankers drafts are instant, others say they're... not? :confused:
  • CruachanCruachan Posts: 7,211
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    Polonius wrote: »
    Getting mixed answers here. Some say bankers drafts are instant, others say they're... not? :confused:

    Best ask the bank which is providing the draft.
  • [Deleted User][Deleted User] Posts: 5,383
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    I think the gist of what you're being told is that genuine bankers drafts are as good as cash to accept (i.e. they won't "bounce" like a personal cheque might - the funds have to be there to support them before they are issued!) and "clear" as quickly as any other cheque when you bank them.

    However, if you were accepting one as payment for something then do be sure it is a genuine draft - as crooks have got wise to people trusting bankers drafts and can give you fake one that you are unlikely to spot until it's too late (do you know what a real one looks like?) then your bank ultimately dis-honours it some days or weeks later and you are out of pocket!

    In your case I don't see an issue - the Halifax are basically giving you your money from your account by way of a cheque.
  • MigsterMigster Posts: 4,204
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    Polonius wrote: »
    Getting mixed answers here. Some say bankers drafts are instant, others say they're... not? :confused:

    If you pay a bankers' draft into your account it should be credited as if it were cash, so it would be available for you to withdraw against immediately. That doesn't however mean that the funds are guaranteed - it can still bounce if it proves to be a forgery, stolen, etc.
  • Daveoc64Daveoc64 Posts: 15,374
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    I'm currently buying a car (from a nearby Toyota dealership) and they have said that a banker's draft isn't really accepted anymore due to the possibility of fraud.

    They prefer CHAPS or a Debit Card.
  • d'@ved'@ve Posts: 45,452
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    Migster wrote: »
    If you pay a bankers' draft into your account it should be credited as if it were cash, so it would be available for you to withdraw against immediately. That doesn't however mean that the funds are guaranteed - it can still bounce if it proves to be a forgery, stolen, etc.

    So phone up the issuing bank branch to verify that they did in fact issue it! This means never accept one when the Banks are closed and the staff have gone home.

    When I was responsible for issuing and checking them when I worked in a Bank a few years ago now, I did from time to time take phone calls from concerned payees who wanted me to confirm that it really was a genuine draft. Having I/D'd our customer, who had to be present of course, I could then confirm to the payee that a draft for that amount and with that serial number was issued to our customer.

    Not 100% proof against fraud but 99.9% and was always good enough for the payees I spoke to.

    Payment of bank drafts is as safe as the bank itself, if fraud can be eliminated... but they do take a few days to clear. Most Banks will however let you draw against a bankers draft immediately, for "normal" amounts... especially one of its own drafts!!!
  • SystemSystem Posts: 2,096,970
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    d'@ve wrote: »
    So phone up the issuing bank branch to verify that they did in fact issue it! This means never accept one when the Banks are closed and the staff have gone home.

    When I was responsible for issuing and checking them when I worked in a Bank a few years ago now, I did from time to time take phone calls from concerned payees who wanted me to confirm that it really was a genuine draft. Having I/D'd our customer, who had to be present of course, I could then confirm to the payee that a draft for that amount and with that serial number was issued to our customer.

    Not 100% proof against fraud but 99.9% and was always good enough for the payees I spoke to.

    Payment of bank drafts is as safe as the bank itself, if fraud can be eliminated... but they do take a few days to clear. Most Banks will however let you draw against a bankers draft immediately, for "normal" amounts... especially one of its own drafts!!!

    Don't know what you might call normal amounts,i wouldn't normally use a bankers draft for a small amount of money,mine were £1000 to £2000 bankers drafts which were cashed instantly.

    These were also sold to me at lloyds as a form of instant payment,if these were delayed forms of payment i wouldn't go near them,i'd just use a standard cheque.
    I used them to pay for goods,the payment had to be instant.
  • [Deleted User][Deleted User] Posts: 4,973
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    susie-4964 wrote: »
    Sounds a bit odd, because if you query a transaction you've got to go through your bank, and they do spend quite a lot of time investigating these things, so they's surely find out if it was a fraudulent claim?
    I had one of my credits cards done last year, quearied all but one item on the last statement and that was all fine. Never occured to me to look on the previous ones, maybe I'll go double check them.
    Not sure how successful people have ever been at that, 13 months after buying the video I suddenly query that it wasn't me who bought it. well thats cos its gone wrong just as the guarentte ran out. !
  • d'@ved'@ve Posts: 45,452
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    beintot wrote: »
    Don't know what you might call normal amounts,i wouldn't normally use a bankers draft for a small amount of money,mine were £1000 to £2000 bankers drafts which were cashed instantly.

    These were also sold to me at lloyds as a form of instant payment,if these were delayed forms of payment i wouldn't go near them,i'd just use a standard cheque.
    I used them to pay for goods,the payment had to be instant.
    A "normal amount" would include the amounts you mentioned but it is entirely a matter for their own discretion, they are not obliged to let you draw cash immediately but they often do. £200,000 might pose a bit of a problem though! Or Northern Rock bankers drafts in those few weeks when it was first known they were in trouble! :eek: :D
  • SystemSystem Posts: 2,096,970
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    I cashed the draft this morning at about 9.30am. As yet not cashed.
  • [Deleted User][Deleted User] Posts: 3,631
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    Migster wrote: »
    If you pay a bankers' draft into your account it should be credited as if it were cash, so it would be available for you to withdraw against immediately.
    Nope, I've worked for a few banks and the only one that did that (going back 20 years) was Halifax. They had "cash" "cheque" and "special cheque" buttons. The latter was for salary cheques and bank drafts. It recorded them as a cheque but treated as cash. All the other banks treated bank drafts as regular cheques.
  • SystemSystem Posts: 2,096,970
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    Assuming this takes as long as a normal cheque (I cashed it at 9.30am today) when can I expect the funds in my account? I never cash cheques and could do with the cash as soon as.

    Could it be Wednesday/Thursday? Definitely not tomorrow, right?
  • [Deleted User][Deleted User] Posts: 5,383
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    Polonius wrote: »
    Assuming this takes as long as a normal cheque (I cashed it at 9.30am today) when can I expect the funds in my account? I never cash cheques and could do with the cash as soon as.

    Could it be Wednesday/Thursday? Definitely not tomorrow, right?

    You didn't "cash it", you "paid it in" to your account (pedantic perhaps, but an important difference in this case). 3-4 working days is the normal clearing time with most banks so no, definitely not tomorrow.
  • SystemSystem Posts: 2,096,970
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    Well quite, I don't use them. I always do payments online.

    So do you reckon Thursday earliest?
  • [Deleted User][Deleted User] Posts: 5,383
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    Yes :)
  • SystemSystem Posts: 2,096,970
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    LCDMAN wrote: »
    Yes :)
    Thanks a lot :)
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