Financial Consumer Agency of Canada
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Financial Consumer Agency of Canada

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Paying by Cheque

When you write a cheque, you are instructing your financial institution to take that money from your account and transfer it to the person or merchant who is cashing the cheque.

Cheques are becoming a less popular method of payment in Canada, and many businesses no longer accept personal cheques.

Tips to follow when paying by cheque

  • If you mail the cheque, allow enough time for the cheque to reach the payee by the due date.
  • Always have enough funds in your account to cover cheques you have written to avoid non-sufficient fund (NSF) fees. Both your financial institution and the biller could charge you an NSF fee, if that is their policy.
  • Keep a record of all your payments made by cheque.

Cheque related issues

Click on the topic below to learn more about:


Cheque clearing

The Canadian Payments Association (CPA) is the organization that developed and operates the system of payments in Canada, through which payments, such as cheques, are exchanged and settled between financial institutions. To learn more about the cheque-clearing process, contact the CPA.


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Date Modified:
2013-04-11