Drafts and cheques

Receiving payments

Although we do not recommend that you receive paper-based payments from abroad, we can arrange to clear these on your behalf.


About drafts and cheques

  • Submit cheques and drafts drawn on banks abroad, or in foreign currency drawn on the UK to be cleared on your behalf
  • Save costs by paying items which are in the same currency, drawn on banks in the same country, for negotiation, in a single pay-in to your account

Payment by negotiation, purchased with recourse Payment by negotiation can only be used if the draft or cheque is in the local currency of the country on which it is drawn (for example, US dollars payable in the US). Even so, we might still have to send it for payment by collection.

Foreign currency cheques will be credited to your sterling or currency account within five working days after receipt of the cheque, once agreement to negotiate with recourse has been made.

We will normally pay you the value of the draft or cheque, less our charges, using a cheque-buying rate if conversion is necessary.

The charge for payments by negotiation is 0.25% per item (Min £7 - Max £45).

If the payment is not honoured by the paying bank, we will debit from your account the value of the draft or cheque, plus a handling fee.

Payment by collection

Sometimes we will have to send a draft or cheque for collection. Examples are:

  • If the payment comes from a country with a high risk rate
  • If it is not in the local currency of the sender's country (for example, US dollars payable in Greece)

We will send the draft or cheque to the bank on which it is drawn and will not credit your account until we have received the money or have been assured that it will be paid.

This can take some time, depending on the country the payment is coming from and the bank clearing the payment.

Wherever possible, ask for sterling drafts drawn on a UK bank. These can then be paid directly into your Royal Bank of Scotland sterling account.

The charge for payment by collection sent abroad is 0.25% per item (Min £20 - Max £70) plus Agents Charges. The charge when the payment by collection is sent to other banks in the UK is £12.00 per item, plus agent's charges.