4 Payment Facilities
NAB provides cheque access to certain accounts. These are listed in the Product Comparison Table. If you have cheque access to an account, the following terms and conditions apply:
4.1 General provisions
(a) Each cheque must be completed properly and with due care so as to avoid fraudulent alteration and in accordance with the account authority you give NAB.
(b) You must notify NAB immediately on 13 10 12 if you have any cause whatsoever to suspect that a cheque drawn on your account has been forged or fraudulently altered in any way or has been drawn in whole or in part without authority from you.
(c) You must take reasonable care and precautions to prevent unauthorised, stolen, forged or fraudulently altered or drawn cheques being presented to NAB.
(d) You must have in place adequate systems and procedures to prevent unauthorised, stolen, forged or fraudulently altered or drawn cheques being presented to NAB.
(e) You must have in place, and implement, adequate systems and procedures by which you can ascertain within a reasonable time whether your account is being debited with amounts not authorised by you.
(f) You must keep cheque forms issued to you in a safe place and you must notify NAB immediately on 13 10 12 if they are lost, stolen or misused.
(g) When a cheque is drawn on your account, it will, when the cheque is handed to NAB:
i. be deemed to be a request by you to NAB to withdraw funds from your account for the amount shown on the cheque; and
ii. NAB will pay those funds to the payee, endorsee, holder, bearer, depositor or presenter of the cheque or that person's bank.
(h) If there are not enough 'cleared funds' in your account when the cheque is presented for payment, NAB may dishonour or pay the cheque at its discretion. This may result in your account being overdrawn. You may also incur any applicable Dishonour charges, the amount and nature of which are detailed in NAB's brochure 'Business Banking Fees – A guide to fees and charges' available from NAB at any time.
(i) NAB may pay a cheque drawn on your account notwithstanding that it is a stale cheque within the meaning of the Cheques Act 1986.
(j) NAB may pay a post-dated cheque drawn on your account at any time before the date of the cheque arrives.
(k) The person signing the cheque must:
i. sign any alterations;
ii. date the cheque the date on which it was signed; and
iii. complete the details.
(l) If, when checking any cheque or particulars of any cheque, NAB finds on it any irregularity or omission, NAB may dishonour payment of the cheque on your behalf.
4.2 Stopping payment on a cheque
(a) You may stop payment on a cheque before it has been paid. You may call NAB on 13 10 12, or notify us at any NAB outlet either in person or by phone.
(b) If you advise NAB by phone, your written confirmation may be required.
(c) No matter how you choose to notify NAB it is important to tell NAB quickly if you want to stop payment. You will be required to provide:
i. your account name and number;
ii. the cheque number and amount;
iii. the date of the cheque; and
iv. to whom the cheque is payable.
(d) NAB may charge a fee for stopping payment on a cheque, the amount and nature of which are detailed in NAB's brochure 'Business Banking Fees – A Guide to Fees and Charges' available from NAB at any time.
4.3 Dishonouring cheques
(a) Your cheque may (at NAB discretion) be returned unpaid or dishonoured in certain circumstances, such as where:
i. there are not enough available funds in your account or your overdraft limit is not enough to cover the cheque;
ii. there is some irregularity or omission with your cheque, for example your cheque is unsigned, is more than 15 months old, is post-dated (e.g. bears a date that has not arrived), or has been materially altered (e.g. by a change to the amount originally stated on it) and you have not signed the alteration;
iii. you have instructed NAB to stop payment of your cheque; or
iv. NAB has received notice of your mental incapacity or of your death.
(b) You may also incur a Dishonour Fee, the amount and nature of which are detailed in NAB's brochure 'Business Banking Fees - A guide to fees and charges' available from NAB at any time.
4.4 Effect of crossing
(a) If you cross a cheque you are telling NAB not to cash it over the counter. The cheque must be paid to a bank (e.g. into a customer's account).
(b) If NAB does cash the cheque, it may be liable for any loss suffered by the true owner.
(c) A cheque is crossed by drawing across the face of the cheque from top to bottom two parallel lines, with or without the words 'not negotiable' between them. A crossing may be added by you when you make a cheque or by any person who obtains possession of your cheque.
4.5 Meaning of 'not negotiable'
(a) The words 'not negotiable' between two parallel lines across the face of a cheque mean that, where the cheque is transferred, the person who obtains the cheque has no greater rights than the person who transferred it to him or her. For example, your cheque might be stolen and then passed on by the thief to another person.
(b) That person might then obtain payment of the cheque. In this case, if the cheque was crossed and marked 'not negotiable', the person from whom the cheque is stolen might recover the amount of the cheque from the person who obtains payment of the cheque, even though the person who has obtained payment may not have done anything wrong.
4.6 Meaning of 'account payee only'
(a) These words on a cheque are a warning to the bank with which the cheque is deposited that the cheque should be paid only to the person named in the cheque as payee. If NAB pays a different person, NAB may be liable to the true owner, unless NAB has acted in good faith and without negligence (e.g. by making enquiries and receiving reasonable explanation).
(b) The words 'account payee only' do not prevent the transfer of a cheque.
4.7 Significance of deleting 'or bearer'
(a) Cheques are generally printed with the words 'or bearer' appearing at the end of the line on which you put the name of the person to be paid.
(b) The words 'or bearer' mean that (except where the cheque is crossed), the bank on which the cheque is drawn has authority to pay the cheque to any person in possession of the cheque, even if that person found or stole it, unless NAB has reason to suspect that the cheque might have fallen into the wrong hands.
(c) If you wish to alter this position by making the cheque an 'order' cheque, the simplest course is to cross out the words 'or bearer' which are printed on the cheque. Also, you may wish to add the words 'to the order of' before the name of the payee, but you will still need to cross out the words 'or bearer'.
(d) If the cheque is an 'order' cheque, then (except in cases where the cheque is crossed and must therefore be collected by a bank) the bank on which the cheque is drawn should only pay it:
i. to the named payee; or
ii. to any other person to whom the named payee, by endorsing the cheque on the reverse side, has ordered it to be paid.
4.8 Unauthorised alteration of your cheques
(a) When you write a cheque, you should take care to reduce the opportunity for forgery and fraud. You have a duty to complete the cheque so as not to mislead NAB or make it easy for someone else to alter your cheque.
(b) Ways to assist you to correctly complete a cheque are:
i. do not leave gaps between the words or figures;
ii. begin the amount in words as close as possible to the left-hand side;
iii. begin the amount in figures as close as possible to the dollar sign ($);
iv. never write a cheque in pencil or ink that can be rubbed out;
v. never sign a cheque before it is used or filled out; and
vi. always write the amount of the cheque in words as well as figures, because words are harder to alter without your authority.
4.9 When is a cheque 'cleared'?
(a) Clearing a cheque involves several steps which may take, in normal circumstances, up to 3 working days.
(b) The steps involved in clearing a cheque are usually:
i. you deposit a cheque you have received into your NAB account;
ii. NAB will seek payment of the cheque from the bank on which the cheque is drawn (the two banks could be the same); and
iii. that bank will pay the proceeds of the cheque to NAB.
Only after the completion of these steps will the cheque be cleared.
(c) Normally you will not be able to withdraw the value of a cheque you deposit until the cheque is cleared, even though your account will be immediately credited with the proceeds of the cheque. This rule applies even to cheques made payable to 'cash'.
(d) If a cheque you have deposited is dishonoured NAB will advise you. NAB will also reduce the balance of your account by the amount of the cheque already credited.
4.10 Special clearance
If you want fast clearance of a cheque you deposit, you can ask NAB for a special clearance. You will be provided with an estimate of the time it will take and any applicable fees. The amount and nature of these fees are also detailed in NAB's brochure 'Business Banking Fees - A Guide to Fees and Charges' available from NAB at any time.
4.11 Third Party cheques
If you present a cheque which is payable to someone else or it appears to belong to someone else (third party cheque), NAB may, in its discretion, refuse to accept that cheque for deposit or refuse to cash it or may require you to comply with some conditions before it will accept that cheque for deposit or cash it.
4.12 Bank cheques
Bank cheques are cheques instructing payment from the bank itself rather than from a customer's account. They are designed to provide an alternative to carrying large amounts of cash when a personal cheque is not acceptable.
Bank cheques are usually requested because of the higher likelihood that they will be paid. However, bank cheques should not be regarded as equivalent to cash.
Bank cheques can be purchased by NAB and non-NAB customers and a fee is charged. A bank may dishonour a bank cheque if:
(a) the bank cheque is forged or counterfeit;
(b) the bank cheque has been fraudulently and materially altered;
(c) a fraud or other crime has been committed;
(d) the bank is told the bank cheque has been lost or stolen;
(e) there is a court order restraining the bank from paying a bank cheque;
(f) the bank has not received payment or value for the issue of the bank cheque; or
(g) a bank cheque is presented by a person who is not entitled to the cheque proceeds.
If a bank cheque is lost or stolen, NAB will, on certain conditions provide a replacement cheque for a fee.
You may make regular payments to a third party ('Debit User'), by authorising the Debit User to debit your account with NAB. For eligible accounts refer to the Product Comparison Table.
4.13 General provisions
(a) The Debit User will provide you with their form of direct debit request and a Direct Debit Service Agreement. Only Debit Users approved by a financial institution can make these arrangements on your behalf.
(b) This agreement may provide for the debiting of your account with any amount charged by the Debit User. You may, however, be able to limit the amount or ask that the charging be delayed until after the issuing of a billing advice to you. These arrangements are between you and the Debit User.
4.14 Disputed debits
(a) You must notify NAB as soon as possible if you suspect or believe that an amount debited to your account was unauthorised or otherwise irregular. Either visit your NAB outlet or call a Customer Service Representative on 13 10 12.
NAB will promptly process your instruction:
i. If you lodge a written claim with NAB regarding a disputed amount, you should receive a response within 7 banking days;
ii. NAB suggests you contact the Debit User and refer to the Direct Debit Service Agreement. This may be especially helpful if you believe that an incorrect amount has been debited to your account.
4.15 Cancellation of direct debit authority
(a) You may cancel your direct debit arrangements with a Debit User by calling NAB on 13 10 12 or visiting your NAB outlet and completing a cancellation request. If you advise NAB by phone, your written confirmation may also be required. NAB will promptly process your instruction and stop further debits to your account. NAB will advise the Debit User of your request to cancel the authority. NAB suggests you also contact the Debit User. This may be especially helpful when resolving complaints about incorrect charges.
(b) To arrange for a direct debit by the Debit User to be resumed on your account, you will need to contact the Debit User and you will also need to contact NAB and cancel the stop payment.
(a) If there are insufficient cleared funds in your account to meet a direct debit payment, NAB may dishonour or pay the debit at its discretion. This may result in your account being overdrawn. If the debit is dishonoured, you may incur a Dishonour Fee, the amount and nature of which are detailed in NAB's brochure 'Business Banking Fees - A guide to fees and charges' available from NAB at any time.
(b) You must monitor your accounts to ensure that you have sufficient funds to meet your direct debit arrangements. NAB will not notify you if a debit is dishonoured or otherwise not made
4.17 Multiple authorities
(a) If you have more than one direct debit arrangement with a Debit User on your account and cancel one arrangement, this will automatically stop all debits from your account by that Debit User.
(b) To arrange for other direct debits to continue on your account, you will need to contact the Debit User. You will then need to contact NAB and cancel the stop payment to allow the Debit User to continue to debit your account.
You must check your statements
4.18 Without limiting any part of these terms and conditions for your account, you must promptly review your statement of account to check for and tell NAB of any transaction recorded on your statement that you suspect for any reason that you did not authorise or for which the information recorded is incorrect.
Failure to promptly report unauthorised transactions may increase your liability.
4.19 In the absence of a breach of any obligation owed to you, NAB will not be liable for any loss that you incur:
(a) if NAB refuses to allow payment of a cheque or direct debit in good faith in the ordinary course of business; or
(b) if a stop payment request is given too late to enable payment to be stopped; or
(c) if NAB suffers any loss as a result of acting on your instructions in relation to a cheque or direct debit (such as processing a request to cancel a direct debit arrangement or stopping payment on a cheque or direct debit); or
(d) as a result of you breaching any obligation you have in this clause.
Where NAB pays funds or suffers any loss under this clause, you must indemnify NAB. NAB will debit your account for the relevant amount.
4.20 The terms and conditions in Part B of this page entitled 'General Matters' are included in these terms and conditions.
PayID and Osko Payments
4.21 You can create a PayID, and make and receive Osko Payments and other NPP payments from certain account types. For eligible accounts, refer to the Product Comparison Table .
Part G sets out additional terms and conditions in relation to PayID, Osko and NPP Payments.
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