Foreign Cheque Collection and Negotiation

In your business you may receive payment by foreign cheques in euro and other currencies that are payable outside Malta, which you need to credit into your account.

Cheque Collection

• Collection is used where the risk of advancing the funds from a foreign cheque is considered too high or where you require confirmation of final payment.
• Funds are paid into your account once they are received by HSBC from the foreign bank. HSBC has no control over the length of time taken for the foreign bank to clear cheques.
• Following paying bank's confirmation, your account is credited with funds without recourse, unless fraud is involved at a later stage.

Foreign cheques can be sent for collection for any amount when:

• Banking relationship with you and HSBC is in its early stages e.g. a new account is being opened with the proceeds
• you request specific advice of fate e.g. if you are uncertain whether a cheque will be paid or you are only willing to release goods when the cheque has been cleared or where payment originates from an Internet sale and not from established buyers that you normally deal with.
• The transaction originates from eligible countries, the list of which may change from time to time. 

Other conditions apply

Cheque Negotiation

Negotiation is used where HSBC has an established negotiation facility. It is used:

• where the amount of the cheque is rather small and processing on a collection basis would leave you with a much smaller amount once charges have been deducted.
• when it is not vitally important for you to know that the cheque has been definitely settled.

You obtain immediate value for cheques, subject to recourse if they are returned unpaid.

Foreign cheques may be negotiated only:

• For customers of good repute
• Where the drawer and drawee banks are of good repute in that country and currency
• Up to a maximum amount of €12,000 (or equivalent) per cheque unless authorisation is received from your Relationship Manager

Other conditions apply