One of my customers on ebay has sent me a cheque where the amount in words is correct, but the amount in figures is up by 5 pence - I wish to present the cheque for the lower of the two values, will my bank accept it or does the inconsistency automatically void it?
(I know I could just ask the buyer to send a new one, but I’m still interested in the technical answer…)
No cite, but it’s always been my understanding that when the amount in words differs from the amount in figures, the bank will pay the amount in words.
You should probably check with the bank(s), though.
Depends on the bank. My bank (washington mutual) would probably take it, especially since it is for the lower amount. For the higher amount, i have no idea and I am not a banker.
There is no law governing this, it’s all the procedures of the individual bank.
I’ve sent off a number of cheques like this where I’ve been unable to contact the customer to have a new cheque made out, and all have been accepted.
AFAIK the bank can return the cheque if it wants to, but if they don’t think the cheque has been altered (and especially if the amount is such a small one) they will pay the amount in words.
I would deposit it with a sticky note saying “please note correct amount is XX.XX” because otherwise it may easily be debited for the wrong quantity by mistake, but I am quite sure the bank will take it.
I’ve worked for several banks handling the system side of Proof and Transit. The legal amount may well be the written amount, but the Proof operators are inputting amounts from a stack of items. They don’'t have time to verify the written amounts. The check will be coded with the numerical amount.
This happend to me once. I made out the deposit for the numerical amount and submitted the deposit at an ATM. It went through just fine.
I suggest you do like I did and submit the deposit at an ATM or a quick deposit. A teller might notice the difference and not accept the check. ATM and quick deposit transactions are done in batches, so the written-out amount is probably not going to be noticed.