Last Pay Cheque

[Blumchen 0]

Hello all..

I moved to California about three weeks ago from BC, Canada, just filed for a SSN on Tuesday, and my work couriered me my last paycheque. I'm having trouble getting it cashed though, because it's a "third party cheque" in foreign funds. I've cashed US cheques in Canada before, and not having the SSN yet isn't the issue. My fiance and I went to his bank, and I brought all my id so I could prove my identity and endorse it for him to cash for me, but the problem was with the cheque itself.

Has anyone else had this problem? As a last resort, I suppose I can still endorse it, Fed-Ex it back to somebody trustworthy in Canada, have then cash it and return it to me in the form of a US money order.... but I'm looking for a solution that doesn't involve putting my money in the mail. Or taking that much time.

Thanks for your help!

[VanessaTony 3,567]

Have you tried an airport to exchange it?

[Blumchen 0]

Well I went to a currency exchange..

[psiprez 3]

At the large American bank I worked for, this situation would come up quite frequently - including when it came time for us to cash my husband's last paycheck from England.

The only way banks today will handle foreign checks is for it to be deposited into an account at the bank. You will not be able to "cash it" and walk out with money in your hands the same day.

If I explain the process, you will understand why (prepare for a lot of bank speak here). Essentially, if the bank accepts the check for deposit, the funds do not get deposited into that account in the normal timeframe of 1-4 business days. The check must be sent to the "overseas control department" of central processing, who then will send it out to the foreign bank in question. If the foreign bank accepts the check, the money will be credited back to the overseas department, who will approve it for deposit into the account. The whole process takes about 6 weeks, if not longer (depending on the foreign bank). The bank charges a fee for this service, too.

If the foreign bank decides to get funny about it and not honor the check, you and your bank are out the money.

Which is why the Bank Branch Manager needs to approve taking the check on speculation. They assess the trustworthiness of the bearer and the legitimacy of the check when deciding to approve taking the check or not. Long-time well-known account holders have an edge here. Even as an employee I had trouble!

End of Story is... if you have a bank account, go in and talk to the Manager about how to get it deposited into your account, and prepare for a wait to get your cash.

Edited October 15, 2011 by psiprez

[Blumchen 0]

His bank didn't even offer anything along these lines, just straight up refused. We had actually asked to deposit it into his account, not to try and take it all at once, because I didn't want to carry so much money in my wallet. I was expecting it to require some sort of holding period, or to be unable to cash it in full immediately, for sure... but to flat out not accept it was rather surprising. He has a credit union, not a bank, however... might that be a factor?

Since you have strong bank knowledge, would you be able to shed some light on what kind of fees you saw in the past cashing Canadian cheques?

[Lise+Michael 13]

His bank didn't even offer anything along these lines, just straight up refused. We had actually asked to deposit it into his account, not to try and take it all at once, because I didn't want to carry so much money in my wallet. I was expecting it to require some sort of holding period, or to be unable to cash it in full immediately, for sure... but to flat out not accept it was rather surprising. He has a credit union, not a bank, however... might that be a factor?

Since you have strong bank knowledge, would you be able to shed some light on what kind of fees you saw in the past cashing Canadian cheques?

I have a small cheque from my landlord for the interest paid on my last months rent. The credit union we deal with here in MN would deposit it into our account with a 10 dollar processing fee. Since this cheque is so small it is not worth the fee, the teller told me that a local grocer, Colborns would cash the cheque, haven't bothered trying though.

Good Luck!

[psiprez 3]

The fee we paid was something ridiculous like $75, but then we wouldn't have seen any of the money if we had not paid that.

It could definitely be because it is a credit union. They probably aren't set up to handle those foreign transactions. The bank I worked at was one of the biggest multi-state banks. Maybe try opening an account at one, even if you just close it after you get the check deposited. You would be taking a hit in fees, but it's better than not being able to cash it and seeing NO money at all.

BTW...to avoid any issues with foreign checks again, I opened a separate Free Checking account (and keep $10 in it). this is my "transfer account". I felt bad that my kids would get birthday checks for small amounts, and that we couldn't deposit them. We gave the account number to a trusty relative back in England, and if anyone wants to send money as a birthday or holiday gift, they can wire us the money to that account. Cheaper, easier, and we never have to give out the number of our main account.

One more thought... would it be worth it to contact your former employer and explain the situation? Perhaps they would be willing to put a stop on the check and wire it to you or something.

[VanessaTony 3,567]

One more thought... would it be worth it to contact your former employer and explain the situation? Perhaps they would be willing to put a stop on the check and wire it to you or something.

I like this suggestion. Hopefully they would but otherwise it might be worth opening an account with an actual bank for the purposes she explained. I retain my Australian bank account so money can be paid into that (for bdays and what not) and then I transfer using paypal from and to my Wells Fargo US account. Saved me a LOT of headaches (and a lot of money in fees).

[sheeshkabelle 153]

Try going to a major bank (Bank of America, JP Morgan Chase, SunTrust) My in laws sent Canada Post money orders to my kids for Christmas last year. Even though they plainly stated they were in US Funds, my credit union would not cash them because, Canadian money orders and checks, have 10 digit routing numbers, not 9 like the US. The credit union system would not take 10 digits. The local check cashing place had the same issue. I finally had my uncle take them to Bank of America and there was no problem. They just wanted him to deposit them, then he withdrew the cash to give me. If you have someone you trust deposit the money then give you the cash you shouldn't have any problem.