Bond payment information

On Fri, 19 May 2006 09:23:26 +0000, PTM

As have never been in the UK, not sure how your cheque system works. In the USA, a cheque is a "negotiable instrument". For instance, if you are employed by a factory or shop you can be paid with a cheque which is cashable at many stores and all banks. Simply endorse it and they pay it on the spot.

If you cash it at a shop, they may use it as part payment for one of their bills, the company they pay it to can use it as part payment for one of theirs, and so on. It might pbutt through the hands of 4 or 5 firms or people before it gets back to clear through your employers account.

It doesn't work that way here. The cheque has to be deposited in your bank and then "clear" through your employers bank before the money becomes available to you. Therefore, most employers used to pay employees in cash. In later years, they deposited it direct into the employees account rather than issuing a cheque to the employee.

Now this isn't much of a problem within Australia, as a cheque takes 2 or 3 working days to clear.

However, when I first arrived in Australia, I had a couple of tax refund checks, one from a US state, another from the US Gov't. In the US could be cashed almost anywhere. After all, the US Gov't isn't going broke.

Would any bank here cash them? Nope, they had to be mailed back to the US to "clear" through the issuing bank, which takes a couple weeks even with airmail and months by sea mail.

Approached head offices of major banks in Sydney, same story.

Since was an American Express customer, as had brought travelers checks with me, they cashed them on the spot. However, I wouldn't guarantee that they would have cashed a personal check from someone in the US, even if it was "certified" or a "cashiers check"

At that time international credit cards weren't common, and most American and other tourists used travelers checks. Many made two mistakes: Firstly, they didn't use a familiar check, they got travelers cheques from there state bank. Again, no problem if traveling in the USA.

In the US, most banks are state banks, for a start, so each of the 50 states has several banks. In Australia, most of these would be unknown. Therefore, the only generally accepted travel cheques were US American Express travel cheques or travel cheques issued by Cooks in the U.K.

Anything else would have to be returned to the issuing bank for clearance. For instance, if the State Bank of Arizona issues its own travel checks, they are OK for use in the US, but don't expect even banks here to cash them without returning them to the US for clearance.

Second mistake was that even if they had American Express Checks they often bought them in US$, not A$.

Most stores won't accept these, as they have no idea of the current exchange rates, so they have to be cashed at banks. Which were normally open on weekdays between, say, 10 AM and 3 PM.

Exchange rates between countries these days can vary minute to minute, also usually banks have a pretty good idea of the current rate. Although they might charge a premium to cash them just to cover themselves. Have seen an example of where even a large chain store in Sydney refused an American Express check in A$. The employee had never seen one before.

So, if use travel checks, or even cash, make sure it is in A$. Otherwise most stores won't accept foreign cash or checks at all, or you won't get a good exchange rate.

These days, of course, it is easy to get international debit or credit-debt cards like American Express, Master card, or Visa and these are usable in most large stores. Many smaller shops will only accept cash in Australian dollars, though.

So if you want to send or receive cash from the USA, suggest that you use Western Union telegraphic transfer. Other companies may be accepted, but again, even most banks and post offices use Western Union.

So if your "uncle Fred" sends you a cheque for your birthday or Christmas, expect it to take weeks to clear, and expect to pay around an A$ 30 handling fee, at least.

Take my word for it, international credit cards are the best as long as they are known cards like Cooks, American Express, Master card or Visa. These can be used in most large shops, and most will even issue cash in addition if requested. Although can also use them to withdraw cash from banks, or, after hours, ATM's or automatic teller machines.

Personally, I would advise against carrying large amounts of cash, as crime here isn't as bad as in the US but probably worse than in the U.K.

Perhaps, especially for US visitors or migrants, the emergency phone number for police fire or ambulance is "000" not "991"or whatever the US is currently using

Incidentally, don't take this to mean that crime is bad here. I've been in Australia for around 30 years, and have never been burglarized, robbed, or even threatened.

In the US, have carried a legal concealed pistol for protection, but not possible here, nor would I even bother to carry one if it was.

Police here are all armed, but not trigger happy. No local or country police, all state police, and a few federal police.

Hope this answers your questions, but if not, feel free to ask more.

Cheers,