Did you receive a foreign cheque from abroad? Whether you are repatriating funds or simply getting paid by someone abroad, you could be facing several difficulties. As simple and as straightforward as cashing a foreign cheque may sound, it comes with great hassles that remind us of how the banking system, and the world, operated some 100 years ago. It is unbelievable to us that this process is still as cumbersome, expensive, and borderline-impossible as it is.
Our reader Jason has contacted us some time ago with an inquiry. He wanted to cash in his U.S cheque in the UK without having to wait for the funds to be cleared over a period of 6 weeks as the bank proposed to him. He wanted to inquire whether any of the FX companies we know can help him in his situation.
After some back and forth, he conducted a thorough research. Here are his findings. Please note that this e-mail is published with Jason’s consent. We are extremely gratful that he brought this to our attention.
Jason’s Email & Summary of his Findings
Cashing a U.S cheque in the UK
September 10, 2018 – Original inquiry sent via our Contact Us form
Cashing a foreign cheque with a money transfer company
We have made our inquiries to some of our partners in the money transfer field. The first to respond was probably the most agile and flexible money transfer firm out of the “big 10” – Currencies Direct. They have indicated that they cannot accept cheques made paypable to an individual but they can quickly clear cheques made payable to Currencies Direct. In other words, before you receive that cheque, you will need to know who is your FX provider and have the cheque to its name.
Currencies Direct or similar leading money transfer companies won’t charge you anything for clearing the cheque – but the standard FX margins they apply on all foreign currency transfers will apply, of course.
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What did Jason do and how did it go?
Based on our findings, there is no way to cash in your foreign cheque. You have one of two alternatives – either get it on the name of the your FX company so they can cash it instantly, use a bank to deposit it and wait 6 weeks for clearance, or use the bank’s negotiation service and pay through your nose. We are sure there are other solutions as well but knowing the financial services industry we would assume these solutions are more apt to small businesses receiving cheques from abroad on a regular basis than a one-off foreign cheque.