Crossing a cheque with 'not transferable', 'account payee' or 'a/c payee' means that the cheque cannot be used by someone else. A cheque marked as 'account payee' can only be paid into the bank account in the same name of the person it is made out to. Some people write 'only' after a/c payee. This makes it clearer to the person receiving the cheque but it is not necessary to add only.

This will help reduce cheque fraud, as anyone using the cheque can only put it into the account named on the cheque. But because only the person named on the cheque can bank it, it is very important that the name is correct.

Not negotiable cheques

This is not the same as 'non-transferable'. A cheque marked 'not or non- negotiable' can be transferred to someone other than the person it is made out to. But it still has to be paid into a bank account.

Do not accept a 'not transferable' or 'account payee' cheque if it has been transferred to you. Only accept it if it has been made out to you in the first place. Make sure your name is written correctly, as it must be the same name as your bank account.

eg, imagine you were selling your car over the weekend. The buyer didn't have enough cash but offered you their pay cheque. If it's 'non transferable' your bank could decline to take it. Then you'd have to track down the buyer and get them to pay you again.

Cash cheques

Writing a cheque out to 'cash' means that anyone can cash it for the sum it is written out for. It does not have to be paid into a bank account. This can be done for someone who may not have a bank account so don't also cross the cheque with 'non transferable' or 'a/c payee'.

But also be aware that if a cash cheque is lost, anyone could bank it.

Electronic/internet banking

You can now do your banking at home, in the office or anywhere you have access to a phone or the Internet.

Banks, credit unions and other financial institutions are now beginning to offer a wide range of electronic banking services, including:

loan applications
credit card payments
bill payments (telephone, gas, electricity, council rates)
cash withdrawals
account balances
account transfers.

What's different about electronic banking?

Banking electronically means that you can bank at your convenience and you can have immediate access to information about your accounts.

Some financial institutions are offering major savings or even no-fee services if you bank electronically.

Budgeting may also be simpler. By using the Internet, you may be able to download information directly into your spreadsheet or financial planner.

How do I go about it?

Talk to your financial institution about the range of services it offers and the fees charged.

You will need a password or access code to be able to access your accounts via the telephone. However some institutions require you to use special software which you will need to download onto your computer and register with the institution. You will also be given a password and, for greater security you may need to use an on screen keyboard to enter your password.

Electronic banking checklist

remember your personal identification number (PIN) passwords or access codes.
change your password regularly and use passwords that are not easily identifiable.
keep a record of all transactions. You can print a record from the computer screen or you can take notes of your telephone calls. Some institutions will give you a receipt number - write this down.
check what security measures are currently used by your financial institution and read any conditions of use.
don't disclose your PIN, password or access code to anyone.
don't forget to log off from the lnternet when you have completed a transaction.

Having a problem with your bank?

If you haven't been to your bank first, you need to go to them and make a complaint, or call their customer service line.

Discuss the problem with your local branch. If you're not satisfied with their response ask for a brochure on their complaints process and follow the process outlined there. This will tell you how to make a formal complaint.

The Banking Ombudsman's office can also give you advice on how to make a complaint, but will not hear the complaint itself until you have approached your bank first and tried to resolve the problem.

The Banking Ombudsman

If you can't resolve a complaint through your bank's complaints process, you can contact the Banking Ombudsman.

The Banking Ombudsman scheme is independent and can hear complaints about banks that are members of the scheme. The following banks are members:

AMP Bank (including former Citibank customers)
ANZ
ASB
BNZ
HSBC
Kiwibank
National Bank
Rabobank
TSB
Westpac.

Most subsidiary companies of the above banks are also in the scheme.

What kind of complaints can the Banking Ombudsman deal with?

The Banking Ombudsman can hear complaints about all types of banking issues including business transacted through branches or electronically, use of bank credit, debit and cash cards, and the sale of insurance superannuation or similar products. For example, complaints about:

uncorrected mistakes
negligence
poor administration or service
breach of contract or confidentiality.

What doesn't the Banking Ombudsman deal with?

A complaint about something that happened before 1 January 1992.
Complaints over claims exceeding $120,000, and claims for compensation for inconvenience and stress exceeding $2,000.
Complaints about a bank's commercial judgement, eg whether it should lend you money.
Complaints about a bank's interest rate policies or the amount of standard fees and charges.

What powers does the Banking Ombudsman have?

Some complaints are resolved at an early stage when you and your bank reach an acceptable settlement. If this doesn't happen, the Banking Ombudsman can award compensation to cover your losses up to $120,000 ($150,000 for bank-provided insurance) or up to $4,000 for stress and inconvenience.

The Banking Ombudsman can recommend (but cannot order) a bank to:

correct a mistake
return or disclose documents
restore an account.

Contact the Banking Ombudsman:

PO Box 10 573
Wellington
Fax (04) 471 0548
Free phone 0800 805 950
or email

Managing your bank fees

Visit Bankcheck, a Consumers' Institute website with information on fees and interest rates for mortgages, bank accounts and credit cards from all major retail banks.

Bankcheck also has tips on managing your credit card, switching banks, saving on your mortgage, a mortgage calculator, and the best ways to borrow money.

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