Australian Banking and Finance Law and Regulation

For a long time, cheques were the main, if not the only, means of third-party payment and deposit from and to bank accounts. The process is simple. A customer provides a third party a cheque that contains important details such as their account number, the date of issue, a payment amount and an endorsement (their signature). The third party then gives this cheque to a bank. The bank then confirms the cheque’s authenticity and processes it. If necessary, this requires communicating with the customer’s bank if the third party and the customer bank with different banks. The end result is the transference of money from the customer’s bank account to the third party’s account.