Difference between Company Cheque & Bank Cheque

Hi,

can someone please explain to me in simple terms the difference between a company cheque and a bank cheque?

Thanks!

Reply to
Scott Steiner
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In message , Scott Steiner writes

Thats a cheque written out by staff at the company on their own company cheque book.

Thats a "cheque" written out by bank staff on the bank's account.

A Bank cheque drawn upon itself, (i.e. The drawer and drawee are the same) technically isnt a cheque but a 'Bank Draft'. None the less the Cheques Act specifically includes Bankers Drafts with regard to the collection and payment of such instruments. This inclusion does not, however, mean a Bank Draft is a cheque.

Similarly, even though the bank may use what appears to be a normal pre-printed 'cheque form' when issuing a draft, this doesnt mean it is a cheque.

Reply to
john boyle

But given what you say about the Cheques Act, does it not mean, notwithstanding that a bank draft is not a cheque, that it is nevertheless indistinguishable from one, as far as everyone other than the bank itself is concerned?

Reply to
Ronald Raygun

If it is if it is issued by one of the banks that issue them on a cheque form and the account upon which it is drawn is described as 'Bloggs Bank Draft Account' in the bottom right hand corner.

For the others there is clever way of spotting the difference and this is because they generally have the word 'DRAFT' written on them sometimes preceded by the words 'HEAD OFFICE' !

Reply to
john boyle

It doesn't matter how (or whether) it is p ossible to spot the difference if the difference is immaterial. What I meant to ask you to confirm is that the difference *is* immaterial.

Reply to
Ronald Raygun

In message , Ronald Raygun writes

You said 'indistinguishable' which implies a purely visual differentiation.

Yes, the difference IS immaterial just so long as the issuer is a 'bank' (i.e. not a b/soc') and the status of that bank is such that it can be a true 'drawee', i.e. cheques can be drawn on it (as opposed to it being drawn on that bank's clearing bankers). There are many institutions that have banking licences that are not able to be drawees in their own right in so far as they have to 'piggy back' on other banks that are able to provide that status.

There is one specific case in which I was personally involved and I cant go into more detail except to say that it issued cheques that looked as though they were issued by the 'bank' but in fact they were drawn on that banks account at a major clearing bank. The clue was in the sorting code number.

Reply to
john boyle

In message , Ronald Raygun writes

OOOPS! Pressed 'post' before I had inserted the main information....

A "Bank Draft" will not be stopped by the drawer or drawee and is regarded (or should be regarded) as being cleared and paid when presented for collection at a branch of the drawee and as paid but uncleared when presented at any other clearing bank.

Reply to
john boyle

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