Using Checks in Switzerland: A Practical Guide

Checks are less widely used in Switzerland than they are in some other countries. Popular checking services like free checkbooks, unsolicited cash checks, and depositing checks by mobile app, are not offered by Swiss banks.

But there are still situations in which using checks makes sense, and many Swiss banks do issue and cash bank checks or personal checks for their private account (checking account) holders.

When does using checks make sense?

Bank transfers always require you to know the recipient’s IBAN or other bank account information. The only information which you need to write a check, on the other hand, is the recipient’s name, and in some cases their address. A check is a direct debit order, not a transfer.

Checks can also be used to draw money from your own bank accounts. You can use checks to make large cash withdrawals from your Swiss accounts while traveling abroad, for example. You can also use checks to transfer money from your foreign bank accounts to your Swiss bank account, when there is no other practical way to do so.

However, it is important to understand that using checks in Switzerland is expensive.

Using bank checks in Switzerland

Bank checks are issued by many Swiss banks, including Raiffeisen banks, Migros Bank, Bank Cler, and many cantonal and regional banks. When you order a bank check, you specify the name of the payee and the exact amount to be drawn. Your bank issues the check with the exact details given. It also places a hold on a portion of your account balance equal to the value of the check. This amount is deducted from your account when the check is cashed or deposited. The hold on your account balance guarantees that the money will be available when the recipient cashes the check. Bank checks are typically used for large transactions.

Swiss banks typically charge a fee of 50 Swiss francs to issue a bank check. However, there are banks which have more affordable fees. For example, the Bernerland Bank charges just 15 francs per bank check issued, and the Appenzeller Kantonalbank charges 20 francs per bank check. If you use bank checks often, take the time to compare check fees when selecting a private account.

Most Swiss banks do not charge a fee when you cash or deposit bank checks issued by the same bank.

Canceling a bank check can be expensive. Swiss banks typically charge 50 francs per bank check cancellation.

Using personal checks in Switzerland

A personal check is a check which does not have a pre-specified amount or recipient. You can enter a recipient and amount of your choice at any time.

Not all Swiss banks issue personal checks. For example, Migros Bank issues bank checks, but not personal checks. It cashes personal checks, but only Swiss personal checks and only for its customers. A few Swiss banks both issue and cash personal checks for their customers.

In Switzerland, personal checks cashed at the same bank which issues them are usually cleared on the same day. Those issued by other Swiss banks typically take 2 business days to clear. Checks drawn on bank accounts outside of Switzerland may take 5 to 10 business days to clear.

Swiss banks generally charge a small fee for blank personal checks (typically between 50 centimes and 2 francs per check). You also pay a fee when the recipient cashes the check (20 and 50 francs per local transaction, and between 20 and 75 francs per international transaction, depending on the bank).

Depending on your bank, you may also pay a fee to cash or deposit personal checks. This check cashing fee typically ranges between 10 and 20 Swiss francs per personal check cashed. Some banks charge an additional fee when you redeem a check for cash at the counter instead of depositing it into your account.

Cashing foreign currency checks at Swiss banks

Many Swiss banks charge foreign transaction fees in addition to standard fees when you cash foreign currency checks. This fee or "agio" is typically equal to 1 percent of the check’s value. Some banks charge a minimum foreign transaction fee. For example, you may be charged 1 percent, with a minimum fee of 20 francs. Some banks do not charge foreign transaction fees.

In addition to foreign transaction fees, you should also consider currency exchange rates. Exchange rates vary between banks, and unfavorable rates can add a significant cost to transactions. You can find useful information in the guide to banknote and forex rates.

More on this topic:
Interactive Swiss private account comparison
Direct debits in Switzerland explained
QR-bill questions and answers
Peer to peer money transfers explained
Sending money overseas from Switzerland: A practical guide