Dishonoured Foreign Cheques
Occasionally the overseas bank that issued the cheque doesn’t ‘honour’/ accept the cheque when we send it back to be cleared e.g. there wasn’t enough money in the overseas account, the overseas cheque was older than 5 month, some information was incorrect or unclear.
If that happens, the value of the cheque will be converted back into the foreign currency (using the exchange rate on the day we’re notified the cheque’s been ‘dishonoured’) and deducted from your account plus any overseas bank charges1. You may lose money if this happens and the exchange rate is no longer in your favour.
Cheques can be ‘dishonoured’ after the money is withdrawn from your account (it’s not common since we put a ‘hold’ on your account until the funds have cleared), but does mean you’ll be asked to repay the money you received including any associated fees.