G/Cash and Treasury Management: Are folded, stapled checks no longer accepted by Banks?

Dear Gabbies,

Magandang umaga po! Itatanong ko lang po kung kung bakit po ang ibang government agencies ayaw tumanggap ng checks na ginamitan ng staple wire ang pandikit. May ruling po ba nito? Salamat po! – VT

Hi, VT:

In 2017, the Philippine Clearing House Corporation (PCHC) clarifies that Philippine banks must accept folded or stapled checks as long as the important details are still visible.

This comes after the BSP set a January 20, 2017 deadline for Philippine banks to shift to the Check Image Clearing System (CICS) regulated by the PCHC.

PCHC specifically states that checks which are folded or have staple holes should be accepted by banks as long as the image and the information on the check are still clearly visible upon unfolding or inspection.

Further, checks without the world ‘only’ after the amount written on the check, with empty spaces not ruled out, or information not written in dark-colored ink should not be reasons for non-acceptance by banks.

PCHC futher clarifies that the reminders stated in the Advisories are issued primarily for the protection of the customers.  Non-conformity with the reminders should not be a reason for non-acceptance of the checks.

What cannot be accepted by the Banks are checks which have erasures, alterations and/or deficiency, pursuant to CHOM No. 15-460.A dated September 2, 2015.

According to the Memorandum, effective January 4, 2016, any checks showing or indicating on its face any erasure, alteration or deficiency shall no longer be eligible or acceptable for clearing.

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