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Credit card cheques

Credit card cheques are similar to normal cheques in that you can use them to draw on funds up to your existing credit limit. Also known as convenience cheques, credit card cheques are often used for balance transfers, i.e. repayment of any outstanding loan from another lender.

Credit card companies do not send credit card cheques without your consent. If you wish to have credit card cheques, you will have to request them from your card issuer, and you will receive a maximum of three credit card cheques per request.

Credit card cheques may be an attractive option for certain situations where a credit card can not ordinarily be used, for instance in person–to-person payments or to pay retailers and service providers who do not have credit card accepting facilities, such as emergency suppliers (eg. plumbers). Credit card cheques can provide you with flexibility in unexpected circumstances.

Many credit card companies charge a fee for each cheque written, typically a percentage of the amount that the cheque is written for. This is often subject to a maximum amount. For example, if you write a credit card cheque for £100 and the charge is 2% of the amount the cheque is written for, you will be charged £2. This amount will appear on your statement. Interest on credit card cheque payments is typically charged from the date the cheque is debited to your credit card account. Credit card cheques will come with their own version of the Summary Box summarising the key features and costs associated with their use.

Note that credit card cheques:

  • Can only be made out for amounts within your credit limit.
  • Do not give you the protection of Section 75 of the Consumer Credit Act, which you would get if you made the purchase with a credit card.
  • Should always be destroyed or shredded if they are not required. Never just throw them away.

The credit card industry has developed best practice guidelines and a summary box template for credit card cheques. Please click here to access all the Best practice guidelines.

The information contained in this table below summaries key features associated with the use of credit card cheques and is not intended to replace any terms and conditions.

* Where promotional rates are relevant, the text in the box must clarify the extent to which the rate applies e.g. whether it is for the life of the credit card cheque balance or a specified period from when the cheque is written. For general terms and conditions of your credit card agreement check the summary box on the reverse of your statement.

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