To ensure that your cheque is not paid into the wrong account you have to fill out not transferable cheques in a specific way following a change in the law on cheques.
The law changed from March 1 this year and as from July 1 banks will no longer assume responsibility for cheques which are credited to the wrong account, unless the words "not transferable" or "non-transferable" are written or stamped across the face of the cheque, preferably in red ink.
Other markings, such as "account payee only" or "only" after the name of the payee, are no longer good enough. If you use these words the payee can still sign the cheque over to somebody else.
The new law also makes it illegal to delete or cancel the "not transferable" marking on a cheque.
Remember that a "not transferable" cheque can only be paid into a bank account in the name of the person to whom the cheque has been made out.
You cannot use a "not transferable" cheque to pay somebody who does not have a bank account or if you are not sure of a person's bank account name. The name of the payee must match the name of the account.
The law on cheques that are crossed and marked "not negotiable" will not change.
The payee of a cheque which is crossed and marked "not negotiable" may transfer the cheque to somebody else. However, if the cheque is stolen, the thief - or anyone taking the cheque from the thief - has no claim against you. This means that you can stop the cheque and you cannot be sued for payment if the cheque has been transferred illegitimately.