[Outbackmanyep]

Originally Posted by Dujon

No, Outbackmanyep, that's not the case. The bank/branch of deposit is entitled to refuse acceptance of a cheque or other instrument if the payee is not consistent with the name of the account to which is intended to be deposited. Such has been the case for years and years and years.

The bank which holds your account has no idea as to whom you paid the cheque - apart from the payee you described - and thus has no control over the acceptance process. Ergo, no dishonour fee as the cheque cannot be dishonoured (for that reason).

Over the years local circumstances have tended to prevail (e.g. Fred's Pub as opposed to Frederick's Hotel). This is normally safe for the banks - which do take on responsibility for the acceptance of misdirected notes - but some 'smart' operators seem to have taken advantage of this, not that it's a new scam by any means.

Even I over the years have suffered. I use the name 'John' but it's not my first given name. You can probably imagine the problems?

Hi John, I see your point, but the thing i was trying to get across is that the bank we are using has started doing this. If i was "Ace Tomato Company Pty Ltd" and someone paid me a cheque with "Ace Tomato's" written on it, i would deposit that in my bank, the teller would accept it but through the internal system it gets knocked back. The cheque comes back to me, i get hit with a fee