Payments & Drafts check0 / 1 answered · 0 correct
Check 1
Why can an apparent cheque credit still be risky?
Cheque Basics and Clearing
Understand payer, payee, drawer bank, deposit and clearing risk.
Cheque basics
A cheque is generally an instruction by an account holder to its bank to pay according to the cheque, subject to local law and account conditions.
Deposit is not final payment
A bank may show provisional credit before a cheque or draft is finally cleared. Fraud schemes exploit the delay between apparent credit and final settlement.
Alterations and counterfeit instruments
Names, amounts, signatures and security features should be checked, but visual inspection cannot guarantee authenticity.
Local systems
Clearing times, cheque truncation, stop-payment rights and finality differ by jurisdiction.
Remember thisMoney appearing temporarily in an account is not always the same as final, irreversible settlement.
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