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US (and other) cheques

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During the COVID-19 crisis, some Americans living abroad receive relief payments by cheque from the US government. Consumers can no longer cash cheques in the Netherlands, however.

Hand of person in blue shirt operates tablet above financial documents on desk with glass of water.

Cheques have largely been phased out in the Netherlands and many other EU countries because they are very expensive to process and susceptible to fraud. Retail banking customers in particular can no longer cash cheques in the Netherlands. Some banks outside the Netherlands still offer this service, but only if the recipient of the cheque is already a customer of that bank.

Transferring an amount to an IBAN is much easier, cheaper and safer, including for large companies and institutions outside Europe. IBAN stands for International Bank Account Number and is an ISO global standard for bank account numbers.

No transfer to a foreign bank account

It appears that the Internal Revenue Service (IRS), the US tax authority that issues COVID-19 relief cheques, cannot transfer these payments to a foreign bank account or IBAN. The IRS can transfer the relief payment to a US bank account, so Americans without a US bank account receive a cheque instead. US banks that regularly transfer money abroad can handle the IBAN of a foreign bank account.

The IRS explains on its website(opens in new window)  that the recipient can return the COVID-19 relief cheque. The amount may then be credited against a future tax assessment.

The Americans Overseas website(opens in new window)  states that US cheques may be cashed at the State Department Federal Credit Union (SDFCU). Americans living abroad may be able to open an account there free of charge and cash US cheques.

The Dutch Payments Association provides this information without obligation and does not guarantee that it is complete or accurate.

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