[ISL]

Not cashing out of town checks (especially in large amounts) is definitely a thing in the US.

For larger transactions, it is also common to get a "cashier's check", drawn on the bank's own accounts to minimize the seller's counterparty risk.

The rationale for the in-town restriction is also to limit counterparty risk: if the check is from an unfamiliar bank, it is more likely to be bogus and the seller won't be able to verify the account with a quick call to a known bank nor expect to be able to address fraud within the local law-enforcement framework.

[zabzonk]

I take your word for it, but I rember getting cash on my UK credit card several times when I've worked in the US. Of course, these were for small amounts, and the credit card company were the ones finally at risk.

I have suddenly had a vision of Clint Eastwood, in High Plains Drifter mode, riding into town and attempting to cash a cheque :-)

[maccam94]

Credit/debit cards and checks are totally different systems. Cards can be checked for available funds instantly. Checks need to be cleared through the ACH system (in the US at least), which is an asynchronous process that might take more than a day to complete. If you cash a check from a different bank at your own, usually it will actually draw funds from your account and the check will be deposited after it clears.

[zabzonk]

It's been a long time since I had a cheque book, but way back then the cheque at the bank (not for electricity payments and such) trying to get money needed to be backed up with a bank's card, and the risk was on the card issuing bank.

[couchand]

I'm not familiar with UK banking but this sounds like something lost in translation. The checks the ancestors are speaking of are personal checks, basically just an IOU -- I'm guessing this is more like your "for electricity payments and such". The cashier's check mentioned above sounds to be more like your "cheque at the bank", where the instrument carries value itself, rather than being a draft on the writer's account.