What are the key steps involved in clearing a cheque?

Question

Accepted Answer

Clearing a cheque involves several steps to ensure funds are transferred from the payer's account to the payee's account.

1. Cheque Presentation: The payee presents the cheque to their bank for processing.
2. Verification: The bank verifies the cheque's authenticity, checking for signatures and validity.
3. Clearing House: The cheque is sent to a clearing house, where banks exchange cheques for settlement.
4. Fund Transfer: The payer's bank debits the amount from the payer's account and credits the payee's bank.
5. Completion: The payee's bank credits the amount to the payee's account, completing the transaction.

Accepted Answer

A customer pays for their goods using a check. The check is presented to the business.

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