Cashing a Cheque Online in Canada

How to Cash a Cheque Online

Cheques may be going out of style, but there is a way to cash or deposit your cheques online in Canada without having to go to the bank. Yes, it is possible, and we will be walking you through the process.

Cashing a Cheque Online

Many financial institutions in Canada offer online banking services, and the remote or electronic cheque deposit service is one of them. The electronic deposit service allows you to deposit a cheque online using the official banking app of your financial institution.

The first step in completing the process is by downloading your financial institution’s mobile banking app. You will then follow the instructions on the app. Usually, the steps are:

  • First, you log into the app and setting up your profile by registering your account details and other information that may be required.
  • Select the option to deposit your cheque
  • You may be required to sign the back of the cheque
  • Take a picture of both the front and back of the cheque (the app should have access to your device’s camera and gallery).
  • Confirm the details of the cheque you deposit
  • Store the cheque until your financial institution clears it

It is a precise and secure process, and once your financial institution clears the cheque, you will be able to cash the cheque. You should note that the cheque needs to meet specific requirements before it can be deposited, and these requirements vary for financial institutions. Some conditions can be:

  • The cheque should be made out to you (in your name)
  • The cheque should be made out to someone you have a joint account with
  • Any level of government in Canada should issue the cheque.
  • The cheque must be in its original version (not a photocopy, PDF, or printout)
  • The cheque should not have been deposited beforehand.

Hold Period for Deposited Cheques

Usually, when cheques are deposited physically, there is a hold period before the cheque is cleared, and you can have access to the funds. This hold period may also apply to electronic deposits, depending on your financial institution.

Depending on the financial institution, the deposit amount may appear in your account but you’ll be unable to access those funds until they’re cleared.

It is advisable to ask your financial institution when you will access funds from your electronically deposited cheque. Also, you can ask if this feature is available for online cashing with your financial institution.

Your financial institution may charge you for electronic cheque deposits depending on the type of account you have and the terms of the agreement.

Avoiding Fraud Risks

To avoid being charged with fraud while depositing your cheque, ensure that the cheque hasn’t already been deposited as the intentional double presentment of a cheque is a criminal offense. If it happens by accident, contact your financial institution immediately to rectify it.

You may also fall victim to identity fraud if your device falls into the wrong hands and is not protected with a PIN or password. Using public Wi-Fi connections in the process of depositing your cheque online by open your details to external risk.

Conclusion

Depositing a cheque online in Canada is possible, and the process is quite simple and straightforward. Take all the necessary security measures to avoid fraud or leaking your personal information.

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