Depositing foreign currency cheques

When you deposit a foreign currency cheque, it can take four to eight weeks to get your money, depending on which option you take and where the cheque is drawn.

There are four options available: collection, negotiation, returning the cheque and arranging an international money transfer.

Collection

This option is available for any cheques valued above $300. We send your cheque to the overseas bank to process. After we receive the funds, we convert them to Australian dollars and deposit the funds to your account. There is generally less risk with this option as the authenticity of the cheque is reviewed more quickly.

However, more manual processing may mean higher costs, which can be passed on to you. You also don't get your money until we receive it. This can be up to eight weeks later, at the exchange rate applicable at that time. In addition, the cheque could still be dishonoured after you receive payment. If this happens, you will need to return the funds to us.

Negotiation

This option is available for cheques up to $5,000 in value. We convert the cheque into Australian dollars today and deposit the funds into your account.

The benefit of this option is that you see the money in your account straightaway and the funds are converted to Australian dollars at the present day’s rate.

However, the funds are not available for you to withdraw for 28 calendar days as we have not yet received any money or received confirmation that the item will be paid from the overseas bank.

The cheque can also be dishonoured by the overseas bank even after the 28-day period. You will need to return the funds to us if this happens. If the cheque is dishonoured, we will ‘sell’ the foreign value back to you. You may lose some money from the changes in the exchange rate.

International money transfer

The best option is to return the cheque to your remitter and ask for the funds to be sent directly to your account via an international money transfer.

These types of transactions are faster and cheaper and generally offer a better exchange rate than a negotiated cheque. You also receive the funds in days, not weeks. In addition, an international money transfer won't be dishonoured once it is received into your account.

Remember, international cheque fraud is commonplace. If you cannot afford to repay the cheque if it is dishonoured, then you should return it and ask for the funds to be transferred electronically.

• Important information about advice
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. View our Financial Services Guide (PDF 59kb).