cheque : a payment method still in use

A cheque is a payment instruction in which you (the drawer) instruct your bank (the drawee) to pay a specified amount to a beneficiary.

In the Pacific territories, cheques are governed by local banking regulations under the supervision of the IEOM.

To be valid in the Pacific overseas territories, your cheque must include:

• The word ‘cheque’ : this term must be clearly visible in order to identify the document as a cheque.
• The payment instruction : the phrase ‘Pay against this cheque’ must be clearly stated to authorise the transfer of funds.
• The name of the issuing bank: : this institution is responsible for executing the payment.
• The date and place of issue : these details confirm the cheque’s validity in terms of time and location.
• The signature of the issuer : this authenticates and validates the cheque.

While not mandatory, some additional elements are strongly recommended to ensure secure transactions :

• The name of the beneficiary : to prevent unauthorised persons from cashing the cheque.
• The amount written in words and figures : to avoid any misunderstanding.

A cheque remains valid for one year and eight days from its date of issue. After this time, it may be refused.
To deposit a cheque at your bank, you must sign the back of it – this is called ‘endorsing’ the cheque. Ideally, you should also write the date and the account number to be credited.

In the Pacific territories, processing times for cheques issued between territories or from mainland France may be longer. As elsewhere, the beneficiary’s bank is not required to credit the funds immediately. Depending on the bank’s policies, cheques may be subject to verification, which may delay the crediting of the funds.

If there is any doubt about the cheque’s validity or if there is any suspicion of fraud, the bank may also postpone processing in order to carry out additional checks.

Follow these recommendations to keep your cheque payments secure :

• Your cheque book is personnal : never lend it, even to someone close to you. Store it in a safe place, preferably separate from your ID documents. Check regularly to make sure it is still in your possession.

• Fill out cheques carefully : use permanent black ink and avoid leaving blank spaces at the end of lines to prevent fraudulent alterations.

• Never sign a blank cheque or leave the payee field empty : always write the amount and the recipient’s name before signing. This helps prevent unauthorised modifications or cashing by someone else.

•  Review your account statements regularly : watch for unusual activity and contact your bank immediately if you notice anything suspicious.

• Never cash a cheque for someone else : regardless of the explanation (bank issues, living abroad, etc.), these requests are often linked to fraud. You could lose the money and unknowingly become involved in money laundering.

• Reject any cheque that doesn’t match your agreement : for instance, if you receive a cheque for more than the agreed amount, never refund the difference in cash or by bank transfer. Even if it appears legitimate – including a bank cheque – it could be forged. Once deposited, you might not receive the funds.

Best practices to prevent cheque fraud

If a cheque is lost or stolen, you must act quickly by arranging for it to be stopped. Contact your bank advisor or call your institution’s 24/7 emergency number, which is usually listed on its website.

Some banks also allow you to block a cheque online via your customer area. For added security, confirm your request in writing by sending a registered letter.

If you are a victim of fraud, you should file a police report as soon as possible.

You can request a stop payment ‘in blank’ if the cheque has not yet been filled out or for a specific amount if it has already been completed. Once the stop payment has been recorded, your bank will prevent the cheque from being cashed. This information will also be entered into the National Register of Irregular Cheques (FNCI), which professionals can access to verify cheque validity.

Please note that your bank may charge a fee for this service.

Check our advice on how to avoid scams.