Banking in France Why

Banking in France Why are cheques still so useful in France? Unlike the UK and many other European countries, cheques continue to be a favourite way to pay all kind of bills in France. Unlike the rest of Europe, the cheque book – le chéquier – is an important method of making payments in France. According to research, French people use cheques more than any other nation in Western Europe, whether to pay for groceries at the supermarket checkout or settle an invoice from an artisan. The history of cheques in France dates back almost 200 years when the Banque de France issued the country’s very first cheque, several decades after English bankers began using cheques as an alternative form of paper money. In 1865, a change in the law created the cheque that we know today. Legislation in the early part of the 20th century made it an offence to write a cheque without sufficient funds in your account to cover it and this is still the position today. Why then do, cheques continue to be a common method of paying bills in France in 2019? There are several reasons: they are a preferred form of payment for many artisans, and some doctors only accept cheques. If you are planning a renovation project, many businesses expect to receive a cheque payment. It’s simple, quicker and easier than carrying around an electronic bank card reader. The artisan will sign the invoice to confirm receipt of payment. Cheques are frequently used for larger purchases too and you do not need a bank card to guarantee a cheque, but you may need id. Writing cheques is a regular occurrence in France because they are a practical and guaranteed form of payment. Bouncing a cheque in France is a serious offence and it is illegal to write a French bank cheque for an amount which exceeds the balance of your bank account. Anyone who does, may lose the right to write cheques and will have limited access to banking services for up to five years – known as interdit bancaire. You should always check your bank statement before handing over a cheque to avoid potential bank fees or worse…. As you would do if you are using your card in a shop, online or at cash machine. Also avoid postdating cheques, because once they have been issued they could be presented immediately. One final precautionary note! Even after a payment made by cheque is credited to your account, banks can recover the money from your account if the cheque bounces for up to