The best way to receive payment from abroad is to have it transferred electronically. Unfortunately that is not always possible and therefore you may receive a cheque made out in the currency from the country it is being sent from. It may also be that the payment is a one off and therefore does not justify opening a foreign currency account in the UK.
In most cases you will be able to pay the cheque into your UK sterling account however you need to be aware of the two types of process that your bank or building society will use, in order to process the cheque. The first and quickest process is by ‘NEGOTIATION’ which can take between 5 and 10 working days to clear into your sterling account however, many banks have upper limits such as £5,000 in sterling terms so you will need to check with your bank or building society. It is also important that the cheque is made out in the currency of the country from which the cheque has been issued so if it is from an American bank, then it should be in American Dollars. The other process is known as ‘COLLECTION’ and this can take up to 8 weeks as the cheque will normally be sent back to the issuing bank. This happens for a number of reasons including where a cheque is issued in a different currency to the local currency of the issuing bank.
Some banks provide more on-line information than others and some examples can be found through the following links but obviously check with your own:
We hope this helps.