sharetrader
Page 1 of 2 12 LastLast
Results 1 to 15 of 19
  1. #1
    Advanced Member
    Join Date
    Oct 2001
    Location
    chch, , New Zealand.
    Posts
    1,954

    Default BNZ refused to bank my Australian dividend cheque (So did kiwi bank)

    Went to Kiwi bank in barrington, and they refused to take my 156 dollar dividend cheque, apparently they no longer deal with australian cheques under 500 dollars in value.

    Never mind I thought, I will take it to BNZ They do take them, except in my case it seems. I was told that as BNZ was not my main bank, even though I have an everyday account plus credit card and term deposit with them, they would not accept it.

    What is the point of banks if they will not even take a cheque?

  2. #2
    Member
    Join Date
    Aug 2016
    Location
    South Canterbury
    Posts
    249

    Default

    I’m surprised you can even get a dividend via cheque now. So much easier to just have it paid into your bank account.

    Quote Originally Posted by ratkin View Post
    Went to Kiwi bank in barrington, and they refused to take my 156 dollar dividend cheque, apparently they no longer deal with australian cheques under 500 dollars in value.

    Never mind I thought, I will take it to BNZ They do take them, except in my case it seems. I was told that as BNZ was not my main bank, even though I have an everyday account plus credit card and term deposit with them, they would not accept it.

    What is the point of banks if they will not even take a cheque?

  3. #3
    Senior Member airedale's Avatar
    Join Date
    Apr 2003
    Location
    Above the high tide mark.
    Posts
    1,263

    Default

    Then I think that you need to have an OZ bank account. ANZ here inChch still take my OZ cheques but charge a $15 fee.

  4. #4
    Trying to get outta here
    Join Date
    Nov 2013
    Posts
    6,748

    Default

    As from Feb next year Kiwibank wont be involved with cheques full stop.

  5. #5
    Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    179

    Default

    Quote Originally Posted by airedale View Post
    Then I think that you need to have an OZ bank account. ANZ here inChch still take my OZ cheques but charge a $15 fee.
    BNZ from Dec 1st of this month imposes a $15NZD processing fee on foreign cheques. I've always wondered for years why BNZ never had this fee while other banks do? Anyways it's clear in NZ, they don't want to deal with cheques (or for that matter, a paper trail). I've been told by many that places like America are far behind from NZ's 'direct credit' system. But the fact is the reason why businesses in the USA typically do not do international electronic transfers is it's costly - on the order of the same fee as Wire TT - $20 etc. A lot of bank tellers in NZ don't understand the US system and the reasons behind why cheque writing AMONG BUSINESSES is the preferred payment method. It's because the IRS accepts the paper trail and is the cheapest method of doing large figure transactions.

    Main bank or not, it should not matter. If you are a customer and have bank accounts with BNZ, then they should help you. However, it is difficult for tellers to work out the cheque deposit without a foreign currency account. Typically even a "Clean Discount" deposit is difficult enough for most tellers to do. Note Clean Discount applies if you're depositing an AUD currency chq into an AUD currency account.

    You know in the US, checking is so common that banks like Wells Fargo have a smartphone app where you self deposit the check to deposit into your account. Done by the app takes a photo of both sides of the check and the bank processes the data. Limit for Wells Fargo on such deposits is no more than $2,500 per day and $5,000 per month ; ALL with NO FEEs charged on a 'checking account'.

  6. #6
    Guru
    Join Date
    Apr 2003
    Location
    Wellington, New Zealand
    Posts
    3,326

    Default

    Interesting discussion. I see the other day the likes of Google and Apple are developing their own "checking" accounts. Delving into the world of finance is silicon valley, but rather than use technology they are offering checking accounts. Quite the oxymoron, shows how Americans like their cheques.

  7. #7
    Permanent Newbie
    Join Date
    Mar 2010
    Posts
    967

    Default

    Quote Originally Posted by ratkin View Post
    Went to Kiwi bank in barrington, and they refused to take my 156 dollar dividend cheque, apparently they no longer deal with australian cheques under 500 dollars in value.

    Never mind I thought, I will take it to BNZ They do take them, except in my case it seems. I was told that as BNZ was not my main bank, even though I have an everyday account plus credit card and term deposit with them, they would not accept it.

    What is the point of banks if they will not even take a cheque?
    ASB opened an Aussie dollar account for me for my dividends to go into, no bank charges but I assume they make money if I convert any back to $NZ. I don't think you can use it as in paying for stuff in Australia but cheaper than $15 per cheque for getting dividends, especially if your cheque amounts are as small as mine.

  8. #8
    Member
    Join Date
    Oct 2002
    Location
    Tauranga NZ
    Posts
    239

    Default

    Quote Originally Posted by airedale View Post
    Then I think that you need to have an OZ bank account. ANZ here inChch still take my OZ cheques but charge a $15 fee.
    I receive my Telstra (NZ listed) dividends which is paid in A$s directly my NZ Direct Broking account, and the same with Suncorp which is listed on the ASX, the net amount is converted in to NZ$.

  9. #9
    Legend
    Join Date
    Jun 2004
    Location
    , , New Zealand.
    Posts
    6,454

    Default

    Quote Originally Posted by ratkin View Post
    Went to Kiwi bank in barrington, and they refused to take my 156 dollar dividend cheque, apparently they no longer deal with australian cheques under 500 dollars in value.

    Never mind I thought, I will take it to BNZ They do take them, except in my case it seems. I was told that as BNZ was not my main bank, even though I have an everyday account plus credit card and term deposit with them, they would not accept it.

    What is the point of banks if they will not even take a cheque?
    I had a similar experience with what I had regarded as my 'main' bank Westpac Ratkin, when I tried to bank an English dividend cheque earlier this year.

    First I need to explain how Westpac deal with overseas cheques. With Westpac, an overseas cheque goes straight into your current account and is available as cash the next day. I think that if you bank a cheque and it is dishonoured, then the cash they have credited you with is clawed back. But the result is there is this window where you can put an overseas cheque in your NZ account, get out the money and 'clear out your account' while the overseas cheque is still being processed. I don't know why Westpac deals with overseas cheques this way. I think the policy is an open opportunity to commit fraud if you were that way inclined. I would be quite happy for the money I have just banked in NZ to remain in escrow while the overseas cheque is cleared. However, that is the Westpac policy.

    Ok here is my story. I presented my English dividend cheque for the equivalent of about $400. The teller was very worried and had to go out the back to discuss with her supervisor. She was worried that from the time I cashed the cheque and the time it was cleared the exchange rate would change and so the bank could lose money (of course the exchange rate could equally well go the other way and they could gain money but this was never brought up). The way banks make money on international cheques is the difference between the buy and sell rates of cheques. This provides Westpac with something like a 500 basis point exchange rate gross profit margin. Typical currency movements over a few days are likely to be within 100 points. What I am saying here is that the bank's argument was spurious. The chances of them losing on the deal in dollar terms was next to nil. Yet they went out of their way to make the deal difficult for me. First of all they said they would charge be a $50 international courier fee. And then after looking at my account they decided to point blank refuse to deposit it. Why?

    My cheque was refused because I didn't have my salary deposited into my bank account. Now I have been self employed for over 25 years, so it has been a long time since my 'salary' was deposited in there. However all my money from my business dealings goes through that account, and it adds up annually to a lot more than the average salary. Yet I was told this money did not count, they were only interested in my 'salary'. Being self employed my monthly revenue does vary. If I am working on a big project sometimes my income for the month is zero, as I do not part invoice jobs. This may have spooked them although I have never got into any credit trouble with my bank. However, that particular month I did have good cashflow and had about $15k in my current account, and I never dip below $5k. Yet I was deemed too risky to do such a transaction. I was more or less told there was nothing to stop me clearing out my account and pocketing the money while the cheque from a multinational company, a lot larger than Westpac I might add, had a high chance of bouncing. They therefore were refusing my cheque. I then told them that if they refused such a transaction I would go out and look for another bank And they said fine, off you go. They didn't seem at all perturbed that they were about to lose a customer of 30 years standing.

    While all this was going on there was a queue of customers behind who were getting agitated at having to wait so long for what I had thought would be a simple cheque deposit transaction. The impression they were being fed was that I was some kind of confidence trickster trying to put one over on the bank and I was left to leave in front of them all in apparent disgrace. I can honestly say this was one of the worst retail experiences that I have ever had, and I will never forgive Westpac for the way they treated me that day.

    SNOOPY
    Last edited by Snoopy; 04-12-2019 at 08:37 AM.
    To be free or not to be free. That is the cash-flow question....

  10. #10
    Member
    Join Date
    Apr 2014
    Location
    Christchurch
    Posts
    69

    Default

    Recommend that you open a Transferwise account.

    That way you can get a AUS bank account number to deposit the dividends into without all the usual hassles of opening a AUS bank account.

  11. #11
    Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    179

    Default

    Quote Originally Posted by blackcap View Post
    Interesting discussion. I see the other day the likes of Google and Apple are developing their own "checking" accounts. Delving into the world of finance is silicon valley, but rather than use technology they are offering checking accounts. Quite the oxymoron, shows how Americans like their cheques.
    The reasons are clearer for the American than for the Kiwi. It's far more intuitive and faster to write a cheque than to ask the person to fiddle with their smartphone, by typing in bank account #s (for which adds an element of human error). More importantly, the cheque writing does not require any smartphone that requires access to the internet. It can be conducted in any rural office, country side, you name it. So it's not that Americans like cheques, it's because they IMO find it more convenient. As for myself, I too prefer to conduct business in cheque writing fashion because countless of times when we go around doing business, chasing up owners asking to pay on a previous account in arrears; the #1 excuse they tell us is "Oh I thought I did direct credit on this statement months ago.... i'll have to check with the accountant" So for the business owner that has no intention to wanting to pay a debt, the DC transaction gives them a way to 'fluff' off any creditors. Then you have this Zero accounting / payment scheme just to add another level of guarantee on transactions between businesses...

    I've heard of all sorts of silly excuses from NZ banks about the issues of cheque clearance. I wonder why when Well's Fargo has a simple app that allows the holder of the cheque to 'self deposit' using their app on the smartphone. How does that warrant such a fee of $15 per cheque? Because i'm certain to the bank in NZ, when they clear foreign cheques, they use a similar app and clear cheques in a similar fashion.

    Now as far as retail transactions, rarely cheques are used (in both Canada and the US). Retail transactions have been dominated by electronic credit card swipe payments.

    I'll mention again, in the international business front of sending funds. A wire TT transfer cost by the business owner will cost more than $15 ; to the individual person on the retail front, no one is going to accept this kind of charge. But to the person doing business, well then these transactions are not as numerous and typically deal with much larger figures so the $15 wire fee may not be so much of an issue. But why go to that level and business checking offers FREE checks? When a shop writes us a check in the US or Canada, it costs them nothing. Unlike in NZ, we have a system where banks ding you fees on cheque deposits which no surprise, pushes ALL people towards a common electronic DC way (loss of choice). America has always been about choice and let the people choose what they like vs in NZ, let the NZ gov't ram down what they deem fit for the people.

  12. #12
    Guru
    Join Date
    Apr 2003
    Location
    Wellington, New Zealand
    Posts
    3,326

    Default

    Quote Originally Posted by SBQ View Post
    Unlike in NZ, we have a system where banks ding you fees on cheque deposits which no surprise, pushes ALL people towards a common electronic DC way (loss of choice). America has always been about choice and let the people choose what they like vs in NZ, let the NZ gov't ram down what they deem fit for the people.
    Totally agree with your thoughts there. We love giving up our choice here in NZ and love the govt dictating to us what to do, think, eat and consume.

  13. #13
    Advanced Member
    Join Date
    Oct 2001
    Location
    chch, , New Zealand.
    Posts
    1,954

    Default

    Quote Originally Posted by Snoopy View Post
    The impression they were being fed was that I was some kind of confidence trickster trying to put one over on the bank and I was left to leave in front of them all in apparent disgrace. I can honestly say this was one of the worst retail experiences that I have ever had, and I will never forgive Westpac for the way they treated me that day.

    SNOOPY
    Yep it a bit like that these days, they all seem very wary, pretty ridiculous considering the small amounts involved.
    ASB is my last hope, have term deposits with them, Three overseas currency accounts and a cash management account, now if they turn me down I will be miffed. Will end up having to tear the cheque up.
    Sold my shares in the company today. Was my only Australian holding that does not pay directly to my NZ bank account, and arranging for it to be done for this company was more bother than just selling the shares

  14. #14
    Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    179

    Default

    Quote Originally Posted by ratkin View Post
    Yep it a bit like that these days, they all seem very wary, pretty ridiculous considering the small amounts involved.
    ASB is my last hope, have term deposits with them, Three overseas currency accounts and a cash management account, now if they turn me down I will be miffed. Will end up having to tear the cheque up.
    Sold my shares in the company today. Was my only Australian holding that does not pay directly to my NZ bank account, and arranging for it to be done for this company was more bother than just selling the shares
    Perhaps i'm missing something but I want to question... WHY are listed corporations either ASX or NZX still issuing cheque payments to shareholders????

    In N. America, this is the job of your BROKER or where you hold your brokerage account. Any shares you own in a company, the disbursements are directly deposited in those accounts. Even in my father's Cdn brokerage account, any USD shares that issued dividends in USD currency, go into his brokerage account with the funds exchanged in CDN currency on that day. I just don't understand why this would be such a big deal here in NZ or in Aus? There should be NO cheque sent directly to a shareholder's physical address.

    An interesting trend I noticed. It seems in NZ the banks are moving away from international services and more particuarly, brokerage services. While in America, i'm seeing the other way around ; just recently TDAmeritrade done a deal to be bought out by Charles Schwab (the latter a full brokerage firm wanting to get into the banking industry that Toronto Dominion offers and an easy leg into the Canadian market). Likewise, there are other brokerage firms looking to make huge acquisitions by buying up a major bank, for the reason to get into the retail banking industry - i'm recalling Goldman Sacs eyeing up E-Trade so they can get a step into retail banking. Again, none of this is talked or thought about in NZ or Australia?

  15. #15
    Legend
    Join Date
    Jun 2004
    Location
    , , New Zealand.
    Posts
    6,454

    Default

    Quote Originally Posted by SBQ View Post
    Perhaps i'm missing something but I want to question... WHY are listed corporations either ASX or NZX still issuing cheque payments to shareholders????
    Because the shareholders are the owners, and the owners might want a choice as to which bank they want their dividend cheque deposited into.

    Quote Originally Posted by SBQ View Post
    In N. America, this is the job of your BROKER or where you hold your brokerage account. Any shares you own in a company, the disbursements are directly deposited in those accounts. Even in my father's Cdn brokerage account, any USD shares that issued dividends in USD currency, go into his brokerage account with the funds exchanged in CDN currency on that day.
    You can certainly do the above in New Zealand. However AFAIK all brokers will charge you an ongoing portfolio management fee to do it, albeit at a reduced rate to what they would charge if they were actually doing the managing.

    SNOOPY
    To be free or not to be free. That is the cash-flow question....

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •