Drafts & cheques
Paper-based payments, global coverage and a choice of options: Drafts and cheques
Some of your trading partners may prefer to deal with the more traditional paper-based payment methods. For these types of transaction we can process drafts and cheques from overseas, as well as issue foreign drafts on your behalf.
If your trading partners use paper-based payment solutions, we can provide drafts and currency cheques from overseas on behalf of your business. As an alternative, if you have a foreign currency account you may be able to issue a foreign currency cheque yourself.
Naturally, paper-based solutions are not as secure as our electronic payment solutions, so we recommend that you send or receive payments electronically wherever possible
If you haven't found what you're looking for or have any additional questions please call us using the 'Get in touch' contact information.
We offer two main options for any import business needing to send paper-based payments: drafts and foreign currency cheques:
Drafts
When sending sterling, euro or other currency abroad, draft is an option. This is a cheque issued by the NatWest that is drawn on an overseas bank and is payable overseas. If you require a draft, they should be ordered several days before you actually need them. You can order them electronically via Bankline, or from your branch.
Key benefits
Choice of payment method - enclose your payment with your documents or deliver them in person.
Worldwide distribution- you can send drafts to anywhere in the world reached by the global postal system.
Easy to clear- drafts are normally quickly cleared by the beneficiary's bank, provided the draft is drawn on a bank in the beneficiary's country, and is in that country's currency.
Wide range of currencies- thanks to our partnerships with other banking groups across the world, we can issue drafts in many different currencies, and for any amount.
Costs
£8 for a Foreign Draft up to and including £100 (or currency equivalent).
£18 if you wish to send more than £100 (or currency equivalent).
Foreign currency cheques
When making international payments, you may need to send money to your trading partners in the form of a cheque that is already in their currency. To do this, you will need to set up a Foreign currency account which includes a cheque book.
There are many benefits to this approach. However, you should be aware that foreign currency cheques may not be acceptable to overseas beneficiaries because of the collection charges levied by their own bank and there may be a delay in receiving funds. The currency cheques you issue are payable in the United Kingdom. If you do send cheques abroad, you also need to consider the reliability of the destination country's postal and banking systems.
Key benefits
Wide range of currencies - your business can maintain a foreign currency current account in a number of key currencies.
Fast euro cheque payment - thanks to the intra-UK euro clearing system, euro cheques to UK beneficiaries can now be cleared as quickly as sterling cheques.
Euro payments - you can make payments within the UK in euro.
Improved cash flow - cheques could give you greater control over your cash flow.
Your own cheques - a chequebook of currency cheques will enable you to pay trading partners as and when required.
Pay any amount - we don't place limits on the value of cheques you write (provided you have sufficient funds, of course).
If you haven't found what you're looking for or have any additional questions please call us using the 'Get in touch' contact information.
If your trading partners pay you by paper-based methods, then we can settle drafts and currency cheques on behalf of your business. Drafts and cheques from abroad can be handled either by negotiation or collection.
How to receive funds by negotiation
Once agreement to negotiate with recourse has been made, foreign currency cheques will be credited to your account within 4-5 working days of us receiving the cheque. We will normally pay you the value of the draft or cheque, less our charges. If necessary, we will use a cheque-buying rate to convert currency. However, if the payment is not honoured by the paying bank we will debit the value of the draft or cheque plus a handling fee.
A draft or cheque can only be paid by negotiation if it is in the local currency of the country in which it is drawn, but even then, we still have to send it for collection.
Payments by negotiation charges:
- £100 and under - £5.00
- £100.01 - £5,000 - £10.00
- £5,000.01 - £20,000 - £30.00
- Above £20,000 - £60.00
Plus postage of £0.50 per transaction
How to receive funds by collection
If payments originate in high-risk countries, or if the draft or cheque isn't in the sender's local currency they are more likely to be sent for collection.
A cheque or draft sent for collection is only credited to your account once we have received the funds or we are certain that the item will be paid. How long this takes will depend on the country the payment is originating from, and on the sender's bank clearing the payment. Wherever possible, we would advise you to ask for sterling drafts drawn on a UK bank. These can be paid directly into your sterling account.
Payments by collection charges:
Payment by Collection fees:
- £100 and under - £5.00
- £100.01 - £5,000 - £10.00
- £5,000.01 - £20,000 - £30.00
- Above £20,000 - £60.00
Plus Agent Charges and Postage of £3.30/ £3.60 per transaction (Europe/ Rest of the world)
Cheques sent to other banks in the UK:
- £10.00 flat per cheque plus Agent's charges
If you haven't found what you're looking for or have any additional questions please call us using the 'Get in touch' contact information.
