Drafts and cheques

About drafts and cheques

• You can submit cheques and drafts drawn on banks abroad, or in foreign currency drawn on the UK to be cleared on your behalf
• Reduce costs by paying items which are in the same currency, drawn on banks in the same country, for negotiation, in a single pay-in transaction into your account

The faster and more secure alternative

Drafts and cheques are not secure, and they can be costly to pay into your account. If possible, ask for the payment to be made using and electronic bank-to-bank link.

• More on electronic bank-to-bank links

Payment by negotiation can only be used if the draft or cheque is in the local currency of the country on which it is drawn (for example, US dollars payable in the US).

Even so, we might still have to send it for payment by collection.

We will credit foreign currency cheques to your sterling or currency account within five working days after receipt of the cheque - but only once agreement to negotiate with recourse has been made.

We will normally pay you the value of the draft or cheque, less our charges. If necessary, we will use a cheque-buying rate for currency conversion.

The charge for payments by negotiation is 0.25% per item. The minimum charge is £7, and the maximum charge is £45.

If the payment is not honoured by the paying bank, we will debit from your account the value of the draft or cheque, plus a handling fee.

Sometimes we have to send a draft or cheque for collection. Examples of when we have to do this include:

• If the payment comes from a country with a high risk rate
• If it is not in the local currency of the sender's country (for example, US dollars payable in Greece)

We send the draft or cheque to the bank on which it is drawn. We will not credit your account until we have received the money or have been assured that it will be paid.

Unfortunately, this can take some time - it depends on the country the payment is coming from and the bank clearing the payment.

Wherever possible, ask for sterling drafts drawn on a UK bank. These can then be paid directly into your Royal Bank of Scotland sterling account.

The charge for payment by collection sent abroad is 0.25% per item - minimum £20, maximum £70) plus Agents Charges.

The charge when the payment by collection is sent to other banks in the UK is £12.00 per item, plus agent's charges.