Cheques : A payment method still in use

When you issue a cheque, you – the drawer – instruct your bank – the drawee – to transfer a specified amount to a beneficiary of your choice.

To be considered valid, a cheque must contain the following elements :

• The word « cheque » : This must appear explicitly to identify the document.
• The payment order : The phrase ‘Pay against this cheque’ must be clearly stated to authorise the transaction.
• The name of the bank : The institution responsible for carrying out the payment.
• The date and place of issue :These confirm the cheque’s validity in terms of time and location.
• The drawer’s signature : This authenticates and validates the cheque.

Although some details are not legally required, they are strongly recommended to enhance transaction security. Therefore, it is advisable to :

• Write the name of the beneficiary. This prevents anyone else from cashing the cheque.
• Write the amount in both words and figures. This helps to avoid misunderstandings or alterations.

A cheque remains valid for 1 year and 8 days from its issue date. After this period, it may be refused for payment.
When you deposit a cheque into your account, also known as lodging a cheque, you must endorse it – that is, sign the back of the cheque. Ideally, you should also write the date and the account number into which the funds are to be paid on the back of the cheque.

When funds are credited after a cheque deposit

As elsewhere, in the French overseas territories, the beneficiary’s bank is not required to credit the funds immediately. Depending on the bank’s policies and the necessary verification procedures, the cheque amount may be credited with a delay.
If there is any doubt about the cheque’s validity or suspicion of fraud, the bank may slow down the clearing process to conduct additional checks.

Important, simply holding a cheque does not guarantee payment. Funds will only be credited to your account if there are sufficient funds available in the issuer’s account and the cheque is valid.

Although obtaining a cheque book is free of charge, it is not always granted automatically. Your bank may refuse to issue you with one, particularly if you are listed on the Central Cheque Register fichier central des chèques (FCC). If this is the case, your banker is required to explain the reason for the refusal.
You must also return any cheque books if you are banned from issuing cheques or choose to close your account.

Using cheques involves certain responsibilities. Follow best practice to avoid errors and protect your accounts. An incorrect or improperly completed cheque may be refused and could lead to legal or financial complications.

To ensure the safety of your cheque transactions, it is essential to take a number of precautions :

• Your cheque book is personal : Never lend it to anyone, not even close relatives. Keep it in a safe place, ideally separate from your ID documents, and regularly check that it is still in your possession.
• Fill out cheques carefully : Always use a black, indelible ink pen to prevent fraudulent alterations. Avoid leaving blank spaces by completing all fields precisely.
• Never sign a cheque in advance or leave it blank : Always write the amount and the payee before signing. A blank signed cheque can be misused.
• Monitor your account statements regularly : Review your bank statements to detect any unusual or suspicious transactions and respond quickly if needed. Contact your bank immediately if you notice any suspicious activity.
• Never cash a cheque on behalf of someone else : No matter the reason given (banking issues, residence abroad, etc.), these situations are often linked to fraud. You could end up losing the repaid money and becoming involved in a money-laundering scheme.
• Refuse any cheque that does not match the original agreement, such as one with a higher amount than agreed : Never refund the difference via a wire transfer. Cheques, including bank cheques, can be fraudulent and do not guarantee payment.

Best practices to prevent cheque fraud