Handling drafts and cheques from abroad

Handling Drafts and Cheques

Although we do not recommend that you receive paper-based payments from abroad, we can arrange to clear these on your behalf.

Submit foreign cheques & drafts

Submit cheques and drafts drawn on banks abroad or in foreign currency drawn on the UK to be cleared on your behalf

Save costs

Save costs by paying items which are in the same currency, drawn on banks in the same country, for negotiation, in a single pay-in to your account

Drafts and cheques from abroad can be handled either by negotiation or collection.

Payment by negotiation

This can only be used if the draft or cheque is in the local currency

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 (e.g. US dollars payable in the US). Even so, we might still have to send it for 'payment by collection' (see below). Foreign currency cheques will be credited to your sterling or currency account within 4 -5 working days of processing, once agreement to negotiate with recourse has been made.
 

We will normally pay you the value of the draft or cheque, less our charges, using a cheque-buying rate if conversion is necessary. If the payment is not honoured by the paying bank we will subsequently debit from your account the value of the draft or cheque plus a handling fee.
 

Payments by Negotiation* Tariff
£100 and under £5.00
£100.01 - £5,000 £10.00
£5,000.01 - £20,000 £30.00
Above £20,000 £60.00

*A postage fee of 50p will be added to the above charge.

Payment by collection

Send a draft or cheque for collection

Sometimes we will have to send a draft or cheque for collection. Examples are
 

  • If the payment is coming from a country with a high risk rate
  • If it is not in the local currency of the sender's country (e.g. US dollars payable in Greece)

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

This can take some time, depending 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 Ulster Bank sterling account.
 

Payments by Collection* Tariff
£100 and under £5.00
£100.01 - £5,000 £10.00
£5,000.01 - £20,000 £30.00
Above £20,000 £60.00
Currency cheques payable at other UK banks and drafts drawn by foreign banks on Ulster Bank. £10.00

*Plus a postage fee of £3.30 for items which we have to send to Europe or £3.60 for items which we have to send to the rest of the world.  In addition, Agents charges will also apply.

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