If you’re considering cashing a cheque, there are a few things you should know to avoid common mistakes. To ensure that you’re getting the most out of your cheque cashing experience, it’s important to be aware of the most common mistakes people make.
Here are the 14 biggest cheque cashing mistakes you can easily avoid:
1. Not knowing the fees.
Cheque cashing services typically charge a fee for their service. Make sure you know what the fee is before you cash your cheque so there are no surprises.
2. Getting shortchanged.
When cashing a cheque, be sure to count the money you receive to make sure you’re getting the full amount that’s written on the cheque.
3. Not having proper identification.
Most places where cash cheques will require some form of identification, so be sure to bring your driver’s licence or another form of identification with you.
4. Cashing a foreign cheque.
If the cheque is written in a foreign currency, it may not be valid in Canada. Make sure you know the exchange rate and whether the cheque will be accepted before you try to cash it.
5. Not reading the fine print.
Some cheques have conditions or restrictions that must be met before the money can be withdrawn. Make sure you know what these conditions are before cashing the cheque.
6. Cashing a post-dated cheque early.
Post-dated cheques cannot be cashed before the date specified on them. If you try to cash one early, you may end up getting charged a fee.
7. Cashing a stale-dated cheque.
A stale-dated cheque is one that’s been written more than six months ago. These cheques are typically not honoured by banks, so don’t waste your time trying to cash one.
8. Signing a blank cheque.
Never sign a blank cheque! This leaves you vulnerable to fraud and could end up costing you a lot of money.
9. Give someone else your cheque to cash.
Only cash cheques that are made out to you. If you give someone else your cheque to cash, they may not give you the full amount or they may keep the entire amount for themselves.
10. Trying to cash a cheque that’s been written out to someone else.
This is probably the most common cheque cashing mistake people make. If the cheque is made out to someone else, you can’t cash it – you have to go to the person named on the cheque.
11. Not knowing the bank’s policies on cashing cheques.
Every bank has its policies when it comes to cashing cheques, so be sure to familiarize yourself with them before you go. Some banks may require that you have an account with them to cash a cheque, while others may charge a fee for doing so.
12. Not Endorsing the back of your cheque.
For a bank to cash your cheque, you will need to endorse it first by signing the back of it. This is so that the bank knows that you are the rightful owner of the cheque and that it can be cashed.
13. Cashing a cheque that has been altered.
If you notice that the amount written on the cheque is different from what is shown on the front, do not try to cash it. This is because the cheque may have been altered and could be fraudulent.
14. Not having enough funds in your account to cover the cheque.
Before you try to cash a cheque, make sure you have enough funds in your account to cover it. If you don’t, the bank may honour the cheque but will then charge you a fee for doing so.
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