What Does CHQ Mean on a Bank Statement?

CHQ on a bank statement means cheque. It can be money in or money out, depending on whether you paid a cheque in or wrote one to someone else.

The entry is usually paired with a cheque number, which is your quickest way to match it against your chequebook or paying-in slip.

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Key Takeaways

• CHQ simply means the transaction involved a cheque, rather than telling you the direction on its own.
• A credit means a cheque was paid into your account; a debit means a cheque you wrote has been presented.
• Under the Image Clearing System most cheques clear by the end of the next working day after the day they are paid in.
• The cheque number shown on the statement is the fastest way to identify which cheque it was.

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What does CHQ mean on a bank statement?

CHQ is simply short for cheque. It tells you the payment moved by cheque rather than by card, Direct Debit or bank transfer.

What it does not tell you by itself is the direction. Look at whether the amount is a credit or a debit:

• A credit means someone gave you a cheque and you paid it in.
• A debit means a cheque you wrote has been presented and the money has left your account.

Some banks make this explicit with wording like CHQ IN or CHQ OUT.

How long does a cheque take to clear?

Cheques in the UK now go through the Image Clearing System, which is far faster than the old six-day process. In most cases money paid in is available by the end of the next working day after the day you paid it in.

The important nuance is that "available" is not the same as "certain". A cheque can still be returned unpaid after the funds appear, which is why an unexpected cheque credit is worth treating cautiously until a few days have passed.

Why a cheque you wrote can appear weeks later

Unlike a card payment, a cheque only leaves your account when the recipient actually pays it in. Someone can hold a cheque for weeks before banking it.

That is a common cause of an unexpected debit — the money was always owed, but the timing was outside your control. If you are near your limit, an old uncashed cheque is worth remembering before it catches you out.

How CHQ compares with other statement codes

CHQ describes the method rather than the direction. If money arrived and you are unsure of the source, a BGC (Bank Giro Credit) is the more common code for money paid in. For regular outgoing payments see Direct Debit (DD) and Standing Order (SO).

Frequently asked questions

Is CHQ money in or money out?

Either. CHQ tells you the payment involved a cheque, not the direction. A credit means a cheque was paid in; a debit means a cheque you wrote has been cashed.

How long does a CHQ take to clear?

Usually by the end of the next working day after it is paid in, under the Image Clearing System. It can still be returned unpaid afterwards, so treat an unexpected cheque with caution.

Why has an old cheque come out of my account?

Because a cheque only leaves your account when the recipient banks it. They can hold it for weeks, so the timing is not in your control.

What is the number next to CHQ?

The cheque number. Match it against your chequebook stubs or paying-in slip to identify the transaction.

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General information only, not financial advice. If you don't recognise a transaction, contact your bank.