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A cheque is a written instruction to your bank to pay a certain amount of money from your account to the person or company you have made the cheque out to.
All cheques lodged must go through a cheque clearing cycle, which is monitored by the Irish Payments Services Organisation (IPSO). If you receive money by cheque and lodge it to your bank account, it can take 3 to 5 working days to clear. So make sure that there is always enough money in your account to pay cheques you write, otherwise you may be charged a penalty, or the bank may refuse to pay out and your cheque will bounce.
The clearing process is normally shorter when your account is with the same bank as the person who wrote the cheque. Clearing usually takes the longest when the cheque is from a bank outside Ireland. Once you lodge a cheque to your account, you may see the lodgement on your statement immediately, but you may not be able to withdraw the money until the cheque has cleared.
If you are sending a cheque in the post, you should make sure it is crossed, to avoid someone else (not the person you made it out to) cashing the cheque.
A cheque is considered out-of-date 6 months after the date shown on the cheque.
A cheque can oy be stopped by the bank that operates the account that the cheque is written against. To stop a cheque, you must notify your bank in writing, giving them the account number and the cheque number of the cheque to be stopped.
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