Cheques for Collection

• Related Products

Characteristics of Cheques for Collection:

• Komerční banka mediates:
  • collection of cheques payable in any domestic or foreign bank
  • for KB clients
  • other holders of cheques
• the bank accepts cheques for collection, that cannot be cashed immediately on presentation, especially:
  • private (company) cheques
  • bank cheques on which the signature of the cheque issuer cannot be verified, or which do not meet other conditions for immediate cashing
  • traveller's cheques with a defect
  • cheques presented in terms of an inheritance
  • other cheques
• conditions for mediation of collection:
  • cheques are usually cashed from 16 to 30 working days after their acceptance for collection
  • the length of this period above all depends on the:
    • currency of the cheque
    • quality of the cheque
    • place of payment of the cheque
  • if the cheque has a limited validity (e.g. “valid for 180 days”), it must be presented for collection before expiry of this deadline
  • the issue date is stated on the cheque and in banking practice the deadline for presentation does not usually exceed one year from date of issue of the cheque
  • older cheques can also be accepted for non-committal collection – low likelihood of being cashed
  • if KB receives a report from a foreign or domestic bank regarding non-payment of a cheque by the drawee:
    • it passes on this information to the client
    • or cancels settlement already made
  • all expenses of the bank go to the debit of the cheque holder
• before accepting a cheque from a commercial partner, KB recommends that you check all the required elements of a cheque
• bank cheque – greatest certainty of being cashed
• the optimum situation is to accept the cheque in the national currency of the country in which it is payable:
  • collection of the cheque is faster
  • mostly without any expenses of the foreign bank
  • in practice: a German partner should issue a cheque in EUR, not CZK or another currency
• most frequently used currencies for cheques: USD, GBP, CAD and EUR
  • cheques issued in these currencies are sent for collection in terms of CLS (Cash Letter Service) – on the basis of a contract concluded between KB and the bank in the country where the currency in question is the national currency
  • in the case of cheques issued in EUR, CLS only relates to cheques payable in the eurozone
  • in practice this means that cheques are cashed for clients without incurring any expenses of foreign banks
• the client can ask for the cheque to be sent to the foreign bank using the DHL courier service (costs are covered by the client)

Advantages of Cheques for Collection:

• mediation of collection of cheques payable at any bank anywhere in the world

Cheques for collection allow you to:

• gain funds from the cheque without the need to present the cheque directly to the drawee
• present the cheque for collection at any branch of KB
• collect payment of the value of the cheque for collection at any branch, that provides cash operations in the required currency

Requirements for collection of the cheque:

• presentation of the original cheque
  • with all requirements as stipulated by law
  • with a valid deadline for cashing of the cheque
  • with an Order for collection of the cheque
  • with a valid identity document
  • document authorising the party collecting to act on behalf of the company, which is not older than 3 months – for cheques issued to natural persons – entrepreneurs and corporate entities, that are not KB clients 

Do you want to present cheques for collection?

• contact your relationship manager
• call the toll-free KB Info line on 800 521 521

Related Products

• Domestic Cashless Payment Transactions
• KB Bank Cheques
• American Express Traveller's Cheques
• Immediate Payout of Bank Cheques of other Domestic Banks Drawn up in CZK
• Immediate Payout of Checks from Other Banks to the Debit of Loro Accounts Held with KB
• Immediate Payout of Cheques Made out in a Foreign Currency
• KB Private Cheques