A distressed artist lately approached us with the predicament of handling US cheques from American studios. His difficulties arose from his bank in Ireland, PTSB, declining small-value cheques. When accepted, astonishingly high fees were imposed, often somewhat equivalent to the amount of the cheque itself. It appears PTSB’s hands are tied due to exorbitant processing charges levied by US banks, forcing them to enforce a mandatory $250 minimum cheque value.
In response to this afflicting scenario, we invited readers to suggest alternative solutions that might be shared with the actor. The responses were numerous and varied, ranging from practical to ludicrous and potentially unlawful.
Owen McDonagh suggested endorsing the cheques to a trustworthy individual based in the US by simply endorsing the back of the cheques. This third-party person could then deposit them in an American bank account. The actor’s cheques could be sent in one-go by post, smartly timed to avoid expiry, and a comprehensive annual transfer of the total sum could be sent to the actor’s Irish account, deducting relevant bank charges. The process would require only a few international stamps and banking charges. Several US-based readers offered to handle the cheques personally.
Another suggestion came from Dave Cooke, implying that the actor would need to travel to the US periodically to use ‘Cheque Cashing’ shops commonly available there.
In New York, many Irish pubs have an arrangement that permits them to encash customer’s cheques, the actor explained. However, they need to remember that these cheques from the US may likely have a validity period of six months. As such, the renowned actor would need to fly to the US and cash his cheques fittingly before the end of the six months.
Niall Duffy proposed a coincidence that involved regular trips to America. Depending on the total value of the cheques, would it be a good idea for the celebrity to take a trip to an American bank for cheque encashment once or twice annually? Of course, the actor will need to calculate if the cumulative amount is over $500 to make it worthwhile, suggested Duffy. On the positive side, this may also work as an excuse for a pleasant vacation.
Emma Morrow speculated, could the actor consider opening a US dollar bank account with AIB? She recounted her own experience of doing just that a few years earlier when she inherited a small amount from her American-residing aunt. When the account was in place and the cheque was deposited, it was possible to conveniently convert the USD to Euro through online banking. This process might be cumbersome initially but may be well worth considering for its potential benefits. She also imagined that once film studios modernise their payment methods, he could directly receive his payments in this account.
Keith Mangan had a similar workaround of opening a dollar account with Bank of Ireland in 2008. The cheques can be easily deposited and subsequently transferred to a savings account.
Meanwhile, we reached out to AIB and the Bank of Ireland for further discussion.
The Bank of Ireland revealed to us that their minimum sendable amount in terms of US dollar checks is $200. They also mentioned that these transactions would be subject to the bank’s $25 cheque processing fee and any complementary fees charged by the foreign bank, something they have no authority over. As an alternative, the actor can request the production company to issue him one consolidated cheque annually to minimize charge deductions. They further recommend their customers to opt for electronic fund transfers which is easier, quicker, and less expensive. Unsurprisingly, the actor has already tried this method.
AIB gave a more optimistic response, suggesting that the actor should first enquire with the cheque issuer if they can process international transfers, due to it being typically more cost-effective and efficient than cheque-based transactions.
If it’s unfeasible for him to do otherwise, he could consider setting up an USD Currency Call Account with AIB, enabling him to deposit his dollar cheques. However, there is a transaction charge of €0.80 for each account operation. Additionally, the cheques will either be handled on a negotiation or collection basis, each of which will incur a greater fee of €15.20. The bank’s agent might also impose its own fee, cited the spokesperson.
Being processed by negotiation refers to the cheque being added to the client’s account on the day it arrives, which attracts a 1 per cent fee of the sum (ranging from a minimum €1.27 to a maximum €6.35) alongside transaction costs.
The spokesman also highlighted the dependency of clearing rules and cycles on the country where the cheque was issued. Under specific circumstances, the item must be collected, implying that it will be sent to the overseas bank on a unique presentation basis asking for definitive payment.
A standard payment cycle does not exist for this process. It will incur a €15.20 fee, and the foreign bank might also levy an additional charge. With respect to international cheques, there could be a delay in processing due to clearing or collection. Without considering the value, AIB might elect to send items for collection on behalf of its clients as per its discretion. To open a Currency Call Account, one must already be an AIB customer.
Another reader suggested enquiring to all individuals sharing the same name as your actor friend via email, detailing his situation and thereby gaining assistance from them. This proposal is not viewed as highly beneficial or entirely lawful given that the actor’s name is rather common.
We also came across Margaret Noone, a previous Ulster Bank client before its closure. She then switched over to a credit union current account. Although she is unable to deposit dollar cheques at her local Monkstown credit union, she can do so at the Dún Laoghaire branch for a €15 fee. However, the clearing process may be prolonged.
Furthermore, we received information from the currency exchange firm Fexco that it operates in alliance with credit unions to accept cheques via them. Unfortunately, this option proved unsuccessful for the actor.
Jim Copeland detailed his previous struggles with PTSB, noting that the absence of a clearing house for USD cheques contributes to high fees for customers. Being an industry veteran with over a decade of experience in financial services, Copeland found a workaround through discussion with his local branch manager. He found that unlike PTSB, both AIB and possibly BofI maintain a clearing house, allowing cheques below a specific amount to avoid the “collection” process which involved sending the cheque to the American bank and subsequently applying heavy charges on customers. Since the majority of American cheques aren’t labelled as ‘AC Payee Only’, he managed to successfully endorse his cheque and lodge it into his sibling’s AIB account, which facilitated the upcoming transfer.
He suggested that the actor could replicate this loophole, or simply establish an AIB account. However, it would be worth verifying if their policies have remained unchanged, in order to avoid sudden surprises. Besides, to lower the risk of potential money-laundering investigations, he also advised making regular payments for utility bills and car insurance from the same account if it’s solely receiving funds through USD cheques. Unfortunately, other banks haven’t yet responded to confirm if such an approach is plausible.
The final comment was made by Mary Duffy, who, like the actor, had been receiving small residual cheques for her involvement in the film Fur, co-starring Robert Downey Jr and Nicole Kidman. Initially, she wanted to donate her earnings to the actors’ benevolent fund or another charity, an initiative set up by the Screen Actors Guild. This plan was hindered because she resided in Ireland. Subsequently, she arranged a system with a British writer living in Texas, who accepted her cheques and transferred the money through PayPal. Despite the success of the venture, Mary eventually had to abandon the method due to the minimal worth of the cheques and her reluctance to inconvenience the writer continually.
We passed on every proposal – or as many as he could absorb – to the thespian and whilst he expressed gratitude for the guidance and counsel from Pricewatch readers and voiced so, his downcast sighs revealed that he hasn’t found a satisfactory resolution to his predicament yet.
Just this morning, another cheque arrived. Amounting to $143, the dispirited actor remarked that it was fated for the “gloomy drawer of despair, set to never be cashed”.”