Skip to main content

Cheque Transactions Overview

Process cheque-based transactions including deposits and withdrawals through the BPMCore V2 architecture.

What are Cheque Transactions?​

Cheque Transactions represent the primary transaction commands for processing cheque-based operations in BankLingo. Unlike cheque operations (registration, clearing requests, retrieval), these commands initiate actual financial transactions that impact account balances.

Available Commands​

CommandPurposeTarget Account Types
InitiateChequeDepositCommandDeposit cheque to accountDeposit Accounts
InitiateChequeWithdrawalCommandIssue/withdraw cheque from accountDeposit Accounts

Key Characteristics​

Asymmetric Processing​

Cheque Deposits (wait for clearing):

  • ✅ UnclearedChequeAmount increases immediately
  • ❌ Balance unchanged until clearing
  • 📅 Typical T+2 clearing period
  • 🔄 Requires InitiateClearChequeCommand to credit balance

Cheque Withdrawals (immediate deduction):

  • ✅ Balance deducted immediately
  • ✅ Prevents overdrawing
  • 💡 Risk mitigation strategy
  • 🔄 Can be bounced to restore funds

State Management​

All cheque transactions follow a two-level state system:

  1. Transaction Approval State (Optional):

    • APPROVAL_PENDING → PENDING (if requireApproval: true)
    • Direct to PENDING (if requireApproval: false - default)

  2. Cheque Clearing State (Managed by clearing commands):

    • PENDING → CLEARED/SETTLED (via InitiateClearCheque)
    • PENDING → BOUNCED (via InitiateBounceCheque)
    • PENDING → CANCELLED (via InitiateCancelChequeCommand)

Transaction Workflow​

Approval Workflow Support​

Overview​

Cheque transactions support an optional approval workflow layer before entering the standard clearing cycle. This provides governance control for high-value or sensitive transactions.

When to use requireApproval: true:

  • High-value deposits or withdrawals (configurable threshold)
  • Third-party cheques (deposits from non-account holder)
  • Post-dated cheques requiring verification
  • Foreign cheques requiring additional validation
  • Policy-mandated approval requirements

Approval Flow Behavior​

Without Approval (requireApproval: false - default)​

With Approval (requireApproval: true)​

Approval State Impact​

Deposits with Approval:

  • ⏳ APPROVAL_PENDING: UnclearedAmount NOT increased, balance unchanged
  • ✅ After approval → Enters PENDING, UnclearedAmount increases
  • ✅ After clearing → Balance credited

Withdrawals with Approval:

  • ⏳ APPROVAL_PENDING: Hold placed, balance NOT debited
  • ✅ After approval → Balance debited, enters PENDING
  • ✅ Cheque issued and can be presented

Configuration Recommendations​

Approval Thresholds​

Transaction TypeSuggested ThresholdRationale
Deposits> ₦500,000High-value verification
Withdrawals> ₦1,000,000Risk mitigation for large outflows
Third-Party ChequesAll amountsFraud prevention
Foreign ChequesAll amountsAdditional validation required
Post-Dated ChequesAll amountsDate verification needed

Clearing Timeline​

Cheque TypeTypical Clearing PeriodConfiguration
Local In-HouseSame day (T+0)Instant clearing if both accounts internal
Local Same Bank1 business day (T+1)Standard intra-bank clearing
Local Inter-Bank2 business days (T+2)NIBSS clearing cycle
Foreign Cheques14-21 business daysInternational clearing varies by country

For cheque lifecycle management beyond transactions, see:

Best Practices​

Security​

  1. Validate cheque numbers against duplicates before initiating
  2. Verify account status (not frozen/locked) before processing
  3. Implement approval workflow for high-value transactions
  4. Log all cheque operations for audit trail

Error Handling​

  1. Handle clearing failures gracefully (bounce vs. retry)
  2. Notify customers of deposit delays or withdrawal issues
  3. Track uncleared amounts to prevent overdraft scenarios
  4. Monitor clearing timelines and alert on delays

Performance​

  1. Batch process clearing operations during off-peak hours
  2. Cache till account information to reduce database hits
  3. Use reference IDs to track external clearing systems
  4. Index cheque numbers for fast duplicate detection

Next Steps​