Personal Finance

which bank cheques are crossed cheques ?

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  • Jan 24th, 2023 5:16 pm
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Deal Addict
Feb 24, 2007
1371 posts
55 upvotes
Cross chequing is something you have to do manually, and it is a legal thing in Canada, only problem is the way Canadian Banks cheque clearing process is set up, it might reject the cheques, basically defeating the protection.

Instead of crossing, you can write in the memo field "depositable at a chartered bank, trust company, or credit union in named payee's account only". Seems to work. If you write only a few cheques, then not much of a problem. But if you write a lot of checks, probably best to get a stamp made with the above statement and stamp all your cheques beforehand.
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Dec 9, 2007
955 posts
31 upvotes
gman wrote: As I answer the same question you asked in another thread, at least, schools and lawyers want cheque.
When I was renting I always paid by a cheque. Some places may allow direct withdrawal but I think it's crazy to allow land lord virtually unlimited access to your account.
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Aug 1, 2008
1554 posts
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Ottawa
gman wrote: As I answer the same question you asked in another thread, at least, schools and lawyers want cheque.
So do ex-wives :o
Member
Mar 3, 2008
459 posts
53 upvotes
brunes wrote: I did, and IMO the third post sums up the situation:

Congrats you committed fraud using our banking system as an accomplice. I only say this because stopping a cheque is not a legal way to settle a dispute with a contractor

The only valid reason to stop payment on a cheque is because it was lost - period. You can't write someone a cheque and then stop payment on it just "for protection". Once the cheque is in the recipient's hands, legally, it is as good as gone.

Therefore, I see no use for this "cheque crossing" whatever it is - it seems like it is some attempt to artificiality restrict what someone does with the cheque you wrote them.

EDIT: Who the F write cheques anyway??? Are we living in the US now?
What a ridiculous post!

There are tons of reasons to stop payment on cheques. For example, you give a landlord post-dated cheques for rent and then move, yet the landlord refuses to give you your post-dated cheques back and tries to cash them as time goes on.

Sounds to me like shady companies use cheques that aren't crossed in order so they can commit fraud against consumers.

Crossing cheques is wonderful and everyone should do it with every cheque they ever write! If the entity trying to cash the cheque isn't shady, then they shouldn't have anything to worry about from cheques with stopped payments because no one would be doing that to them. So they need to clean up their own backyards instead of trying to scam consumers by exploiting non-crossed cheques. :mad:

By the way, can someone please post an image of a properly crossed cheque? The Vancouver Sun article with directions of "You "cross" a cheque by drawing two straight lines between diagonal corners." is way too vague to be useful. An image showing this done properly would be wonderful.
Deal Addict
Nov 8, 2017
1556 posts
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brunes wrote: I did, and IMO the third post sums up the situation:

Congrats you committed fraud using our banking system as an accomplice. I only say this because stopping a cheque is not a legal way to settle a dispute with a contractor

The only valid reason to stop payment on a cheque is because it was lost - period. You can't write someone a cheque and then stop payment on it just "for protection". Once the cheque is in the recipient's hands, legally, it is as good as gone.

Therefore, I see no use for this "cheque crossing" whatever it is - it seems like it is some attempt to artificiality restrict what someone does with the cheque you wrote them.

EDIT: Who the F write cheques anyway??? Are we living in the US now?
I've got LOC cheques collecting dust on the shelf above my fridge

I can't find a single use for them yet
Deal Addict
Jun 19, 2007
1022 posts
1172 upvotes
Halifax
emilio911 wrote: Wrong! See section 168 here: https://laws-lois.justice.gc.ca/eng/act ... ge-12.html

Someone has an update on the "crossing of cheques" for 2019? The situation is getting ridiculous with double-deposited cheques (mobile deposits) and Money Mart cashing stolen cheques.
You bumped a 10 year old thread just to kick sand in someones face?

Cheques are even more of an anachronism now in 2019 than in 2009. As a rule I haven't used them in over a decade because people generally *think* they're safer than cash so take all sort of liberties they wouldn't do so with cash, but in reality are pretty much the same with slightly different logistics.
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Jan 9, 2011
15789 posts
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Vancouver
User455957 wrote: I've got LOC cheques collecting dust on the shelf above my fridge

I can't find a single use for them yet
I still write several per year. If you have kids in school you'll write a lot of cheques. Cheque was also the only way to pay the electrician I hired recently. I read through this thread and read through the legislation posted by @emilio911 above and I still have no idea what the purpose of "crossing" a cheque is.
Deal Addict
Jul 13, 2016
1035 posts
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seadog83 wrote: You bumped a 10 year old thread just to kick sand in someones face?
No. I bumped it because there's still no solution, and still wondering this now in 2019.
Kiraly wrote: I still have no idea what the purpose of "crossing" a cheque is.
Mainly avoid Money Gram and MoneyMart scams, if they are accepted by the banks(?).
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Aug 18, 2005
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Burlington-Hamilton
I am aware that this is a 10 year bump thread.
Kiraly wrote: I still write several per year. If you have kids in school you'll write a lot of cheques. Cheque was also the only way to pay the electrician I hired recently. I read through this thread and read through the legislation posted by @emilio911 above and I still have no idea what the purpose of "crossing" a cheque is.
The purpose of crossing a cheque is to avoid getting scammed via Money Mart and other cheque-cashing places.
- casual gastronomist -
Deal Addict
Nov 8, 2017
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Never heard of "crossing" cheques . Had to Google it, and it's still vague .
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Jul 13, 2016
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FrancisBacon wrote: Some would say that the purpose of cashing cheques at the Money Mart is to avoid being scammed by the cheque writer.
:-)
Only if MoneyMart would play by the rules...
Deal Addict
May 12, 2014
3402 posts
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Montreal
emilio911 wrote: Only if MoneyMart would play by the rules...
I've never used their services nor am I even sure if they're in Quebec. What's the issue with them cashing cheques?
Deal Addict
Jul 13, 2016
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FrancisBacon wrote: I've never used their services nor am I even sure if they're in Quebec. What's the issue with them cashing cheques?
They don't give a **** if the cheque was stolen or not.

They don't give a **** if the casher has still the right to cash your cheque or not.

They cash rhe same cheque twice.

In any case, they will sue you and win, because your cheque is an "irrevocable promise".
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Jan 9, 2011
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Jucius Maximus wrote: The purpose of crossing a cheque is to avoid getting scammed via Money Mart and other cheque-cashing places.
It's still not clear to me how "crossing" a cheque with some vertical lines will protect you against that kind of scam.
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Aug 18, 2005
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Kiraly wrote: It's still not clear to me how "crossing" a cheque with some vertical lines will protect you against that kind of scam.
When you write the vertical lines, you also write 'A/C Payee' or 'Non-Negotiable' between the cross lines.
This means that the cheque can't be signed over to a third party such as Money Mart, etc.
- casual gastronomist -
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Jan 9, 2011
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A crossed cheque can still be signed over to a third party. See the commentary on the legislation here: https://archive.org/details/billsofexch ... t/page/250
The legislation dates from 1890 and I'd bet that few in the financial services industry are even aware of cheque crossing in this day and age.
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Jun 19, 2007
1022 posts
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Halifax
emilio911 wrote: They don't give a **** if the cheque was stolen or not.

They don't give a **** if the casher has still the right to cash your cheque or not.

They cash rhe same cheque twice.

In any case, they will sue you and win, because your cheque is an "irrevocable promise".
That may be a bit of an exaggeration. It is an 'irrevocable promise' as long as it was issued as such. If it was in fact stolen, then no promise was made, and the cheque is not in fact valid.

The issue is that a cheque is really the equivalent of cash. If a contractor said they lost the cash, give me new cash, would many people do so? Probably not. But they do with cheques because they think that until the money leaves their account, they still have some magic ability to not pay at their discretion. This is the equivalent of "I forgot the cash at my shop 2 hours away, can you pay me again so I can buy supplies to finish the project, and then I'll return the original cash to you tomorrow", and then failure of the contractor to do so.

If a company pays you with a cheque, and it bounces, are they off the hook for paying you because they realized after the fact they didn't actually need or want your work? There are two separate, completely unrelated issues at hand. The means of payment, and whether that payment was justified. Once you issue a valid cheque, that cash is legally gone. Converting said cheque to cash is purely an exercise in administrative process.
Deal Addict
Jul 13, 2016
1035 posts
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Kiraly wrote: A crossed cheque can still be signed over to a third party. See the commentary on the legislation here: https://archive.org/details/billsofexch ... t/page/250
The legislation dates from 1890 and I'd bet that few in the financial services industry are even aware of cheque crossing in this day and age.
In India, you can write 'A/C Payee' or 'Non-Negotiable' between the cross lines, so it's only paid to the account of the drawee. (see http://kalyan-city.blogspot.com/2011/02 ... es-of.html and also https://www.quora.com/What-is-the-diffe ... ue?share=1 ) Please let me know if this is applicable to Canada or not...

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