Cheques - watch where you sign
One of our subscribers received a call from their company’s bank querying a cheque to HMRC for £11,500. The bank mandate required two signatures on cheques over £2,500 and the bank’s automated cheque reader had put this transaction on hold because it had only detected one signature. This was odd because our subscriber distinctly remembered getting two signatures on the cheque. When pressed, the bank admitted that on the PDF copy they were looking at the second signature could be clearly seen underneath the first! Telephone clearance for the cheque still had to be given though because it had been put on hold.
Tip 1. If you require two signatories on a cheque, to ensure it’s not rejected by the bank’s automated cheque reader (causing you more hassle), make sure they sign side by side just under the amount payable.
Tip 2. The call to our subscriber for clearance had come through on their mobile. This was fortunate as they were out of the office for a few days and would otherwise have missed it. Make sure your bank has a mobile contact number for you should any transaction queries crop up. You can’t always guarantee you’ll be at your desk when the call comes in.
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