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| Credit Card Cheques |  One of the useful ways to use available credit on accounts is credit card cheque. It is written out like normal cheque, and it enable users to make payments from their credit card accounts to people and businesses that do not accept credit cards. Just like with normal cheques, the recipients of the cheques cash them at their banks. The difference is that when the credit cards cheques are cashed, the issuer of the credit cards cheque has there credit card account debited instead of their current account. A lot of mainstream credit cards companies like MBNA, Barclaycard, NatWest and Halifax now provide their customers with the option to use credit card cheques. The credit card providers do not normally send out chequebooks. Most of them send a few cheques at a time to their customers, often accompanying the customer's statements.
Using credit cards cheques
Cheques should be used with a certain amount of caution. Credit card providers levy charges at users of cheques that go above and beyond those charges that are laid out for normal usage of credit cards. Therefore, users may find some nasty surprises on their statements, if cheques are relied on to make payments.
Users of credit card cheques should be aware of:
Credit card cheques #1 - High APR: Note, credit card cheques generally attract a higher APR than normal spending on credit cards. Often the APR is similar to cash advances drawn on credit cards, being some 2% - 3% or more above the APR on general transactions.
Credit card cheques #2 - No interest free period: Very often cheque payments are exempt from the standard interest free period, just like on cash withdrawals made at ATMs with credit card. Normally they begin accruing interest from the day the credit card cheques are processed - something that could prove very costly in the long run for consumers. Consumers could find themselves charged interest on cashed cheques for up to 59 consecutive days.
Credit card cheques #3 - No protection under Consumer Credit Act 1974: Under usual circumstances, consumers using their credit cards are afforded protection on their purchases under section 75 of the Consumer Credit Act 1974. This Act empower consumers to claim back from companies any monies lost should a problem arise on a transaction where no resolution can be found between buyer and seller. Keep in mind, credit card cheques though afford no such protection.
Credit card cheques #4 - No guarantee: Note, credit card cheques cannot be guaranteed. Recipients do not have any comeback should the credit card cheque be refused at a bank, even if the 16-digit credit cards number is written on the back of the credit card cheque.
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