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Guarantee Card
Cheque Guarantee Card.
This is a plastic card that is similar to a cash card. A cheque guarantee card can be used as a guarantee to retailers that the bank will pay them the value of the cheque.
There is normally a limit on how much the cheque can be guaranteed for – this is normally £50 or £100 – and this is shown on the back of the card. In order for the cheque to be accepted, the retailer must see you sign the cheque in front of them.
The retailer will then check the signature on the cheque, and the signature on the back of your card. Providing that the two signatures match, the cheque will then be accepted as payment.
The retailer will also take the card number, and write this down on the back of the cheque. It is not possible to stop a guaranteed cheque. Once the bank gets the cheque, they will have to pay it.
It is extremely important that you keep your card separate from your cheque book. If anybody is able to gain access to both, they could be paying for their goods with your money.
A cheque guarantee card will usually only be issued to over 18s who are working and have a regular income.
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