Sellers today can breathe a collective sigh of relief when receiving payment by cheque. From today any cheque will clear six days after it’s paid into a bank account and on the seventh day it can no longer bounce.
Previously cheques never really cleared and banks could reclaim funds from their customer bank accounts weeks or even months later. A cheque could never be considered “cleared” and there was no certainty of the recipient keeping the funds.
As well as the certainty that the funds are yours on the seventh day, banks will also credit interest no more than two days after the cheque is paid in, and funds will be available to withdraw from your account after no more than four days (although some banks have already implemented terms more favourable than this).
It’s great news for eBay sellers, if a buyer pays you by cheque you can ship a week later in the absolute certainty that the funds can never be reclaimed at some point in the future.