How Do I Cash UK Checks?

Due to the Internet, freelancing and business opportunities have gone global. Potential customers may be halfway around the world. PayPal and on-line money transfers may not always be possible, especially when the currencies of the buyer and seller are not the same. However, a paper check from another country should not pose a problem, especially if the amount is for British pounds. Cashing such a check does not have to be an inconvenience. In fact, it should be relatively easy.

Things You'll Need

• Computer
• Telephone
• Picture ID
• Bank account

Instructions

Select a Bank Account

1. Look up the exact dollar to pound exchange rate online. Bloomberg has a handy table of major international currencies. Know, however, that exchange rates change on a daily basis. On the table, Bloomberg has pounds listed as GBP, standing for Great Britain Pound. This information will help assess the check's value in dollars, before fees are paid.

2. Look at the fine print on the check. The name of the issuing bank should be located somewhere on the front. It is not likely, but the issuing bank may have a branch in the United States. However, the farther you are from a large metropolitan center like New York City, the less likely a branch will be available. Cashing a check at the issuing bank is usually the most expedient option.

3. Call ahead to your personal bank where you already have an account. Chances are, the check can be cashed there. However, fees will apply. If you have an account with one of the larger banks, such as Chase, PNC, or Bank of America, it is likely there will not be a problem. Smaller community banks may pose a problem, however.

4. Research other institutions. If your bank is not able to handle the check, you should be able to find one that does. However, if you do not hold an account with the one that you choose, higher fees will be levied.

5. Drive to the bank to cash or deposit the check. Be prepared to show photo identification.

Tips & Warnings

• Watch the daily exchange rate. If the dollar is gaining against the pound, wait a few days. It will earn you a few extra dollars. If the dollar is losing against the pound, cash the check as soon as possible.

• Be prepared to pay fees.

• Endorse the check only while at the bank.

References

• Bloomberg: Currency Cross Rates
• New York Federal Reserve: some basic concepts: foreign exchange, the foreign exchange rate, payment and settlement systems
• Chase Bank: Fee Schedule for Personal Deposit Accounts

Resources

• Board of Governors of the Federal Reserve System: Banking Information & Regulation