Cheque Security
Crossing a cheque, ‘not negotiable’ or ‘account payee only’
If you cross a cheque, it is a direction to us to pay the cheque into an account at a bank or other financial institution. A crossing does not actually prevent the cheque being negotiated or transferred to a third party before presentation to a bank or financial institution for payment.
Example of ‘not negotiable’ crossing:
Queenslanders Credit Union Ltd
not negotiable Date: / /
Pay Fred Smith
or bearer
The sum of Three hundred dollars Only $300.00
Signature
Crossing a cheque means drawing 2 lines clearly across the face of the cheque as shown above.
When you cross a cheque or add the words ‘not negotiable’ between the crossing you may be able to protect yourself, but not always, against theft or fraud. This crossing sometimes serves as a warning to the collecting financial institution, if there are other special circumstances, that it should inquire if its customer has good title to the cheque.
Example of ‘account payee’ crossing:
Queenslanders Credit Union Ltd
account payee Date: / /
Pay Fred Smith
or bearer
The sum of Three hundred dollars Only $300.00
Signature
When you add the words ‘account payee only’ between these lines you are saying that only the named person can collect the proceeds of the cheque. These words may give you better protection against theft or fraud. It would be prudent for the collecting financial institution to make inquiries of the customer paying the cheque in, if the customer is not the payee of the cheque.
Crossing a cheque, ‘not negotiable’ or ‘account payee only’
If you cross a cheque, it is a direction to us to pay the cheque into an account at a bank or other financial institution. A crossing does not actually prevent the cheque being negotiated or transferred to a third party before presentation to a bank or financial institution for payment.
Example of ‘not negotiable’ crossing:
Queenslanders Credit Union Ltd
not negotiable Date: / /
Pay Fred Smith
or bearer
The sum of Three hundred dollars Only $300.00
Signature
Crossing a cheque means drawing 2 lines clearly across the face of the cheque as shown above.
When you cross a cheque or add the words ‘not negotiable’ between the crossing you may be able to protect yourself, but not always, against theft or fraud. This crossing sometimes serves as a warning to the collecting financial institution, if there are other special circumstances, that it should inquire if its customer has good title to the cheque.
Example of ‘account payee’ crossing:
Queenslanders Credit Union Ltd
account payee Date: / /
Pay Fred Smith
or bearer
The sum of Three hundred dollars Only $300.00
Signature
When you add the words ‘account payee only’ between these lines you are saying that only the named person can collect the proceeds of the cheque. These words may give you better protection against theft or fraud. It would be prudent for the collecting financial institution to make inquiries of the customer paying the cheque in, if the customer is not the payee of the cheque.
