The Cheque and Credit Clearing Company has introduced an online tool that enables customers to monitor the progress of a cheque through the clearing system.

The industry body, which manages the cheque clearing system in the UK, developed the free tool to clarify the clearing process for consumers.

The tool determines the different stages of the cheque clearing process when the customer enters the paying-in date. This includes dates expected for fund withdrawal, fund clearance in customer accounts and the earning of interest.

Although card fraud generates the most headlines, and cheque usage is in decline, cheque fraud is on the rise. Banking organisation Apacs latest figures showed that from January to June this year losses from this type of fraud rose by 35 per cent to £20.4m.

“It may well be criminals are returning to traditional forms of fraud as Chip and Pin makes it more difficult to use cards on the high street,” said an Apacs representative.

A typical cheque fraud involves a criminal buying goods or services and paying for them with a stolen or counterfeit cheque. Over the past couple of years organised gangs have targeted consumers selling high-value goods such as cars.

The fraudster will offer to pay by cheque or bankers’ draft for more than the price of the goods. The seller is then asked to transfer the overpayment to a third party when the cheque clears.

However, research carried out earlier this year suggests that only 23 per cent of UK cheque recipients know when they are able to withdraw the money; nearly eight in 10 underestimate the time it takes to determine whether a cheque has bounced.

This means that the victim often transfers the overpayment to the conmen before it becomes apparent the cheque is counterfeit and it bounces. The victim is liable for the full amount.

The new online checker, along with the Cheque and Credit Clearing Company's 2-4-6 rules introduced a year ago, will give consumers more protection against cheque fraud. These state that after six working days, a cheque is either returned or has cleared.

If, subsequently, it bounces due to a lack of funds, or the cheque is counterfeit, the bank is liable for the debt, not the holder of the account.