Save the Cheque!

lr1277

BarclaysManager wrote: »

A transfer is difficult?



Account numbers have validation numbers within them, and these will now be rejected back by the Faster Payments System. For instance, my account starts 43. If I changed that to 45 or 48, it would bounce right back. Not only are check digits built in, account numbers are created in such a way as to prevent transposition from being a problem. So that's really not an excuse either.

That said, it's not as though it's a hassle to learn your account number and make sure someone writes it down correctly. God knows we manage with telephone numbers.

Transfers are not difficult but see the point about onus.

And it is not the hassle of writing the number down correctly, but the fear of mistyping a digit or more likely transposing two digits.
I am fairly certain I have seen threads on here about people miskeying the account number or sort code and the money leaving their account and not bouncing back.

brightonman123

chqs useful when doing mail order from smaler co's (no online shop, etc)-

most shops swipe the accompanying debit/guarantee card anyway, so a bit pointless!

a bit dubious re the contactless cards (RFID?), if not using a PIN - hardly secure against theft, and may leave the victim out of pocket, if loss not noticed.reported before the b'stard goes on a spree!

some prepaid cars have facility to transfer funds by phone to other card holders, which may be how the industry will develop? no delay in getting payment..

but imo, cash is king!

Extant

BuddyBonthenet wrote: »

Actually I think this is a very good example of how cheques are used and spenderdave's post #51 backs this up.

There are thousands of people who volunteer to organise trips, events & general fundraising for schools, churches, clubs, community organisations, charities, etc., none of whom have access to the main organisation's bank account and that is the way it has been for years.

So there in no better position using cheques than they are funds transfers - they still have no method to see whether or not the funds have been cleared.

As spenderdave says, the cheque has been the universal and preferred method of payment and doesn't require authority to access the bank account. It is a much for you to say that if you don't have this authority you shouldn't be receiving any payments.

Emphasis on has been. Anyway, this is a circular system: the fact is, by and large, people just do not use cheques any more. As said before, cheques are just over 5% of non-cash transactions. They're not used on the wider scale.

People only use cheques because other people demand them. If people worked out how to receive payments in a different way, the need would disappear.

Yes, my objection is that without the cheque the volunteer/organiser doesn't have something tangible that helps them with administering/organising the event. It is very little if anything to do with cheques being guaranteed funds or not (I've never heard of this kind of cheque bouncing anyway - trust is a often big factor).

Write stuff down? "Spoke to X on DD/MM, agreed to transfer funds by DD/MM, will check with treasurer in one week..."

Added benefit of not having lots of little bits of paper floating around.

As I have said repeatedly I am well aware of the other methods of payment available and use them all the time. I'm just looking for a practical solution for what is not an uncommon situation. spenderdave's comments about small businesses is also very relevant and again not at all uncommon.

Again, it's a circular situation: people demanding cheques makes people use cheques.

The core of the argument is this: cheques offer no advantages over other freely available methods.

People are also treating this scenario as if there's a big on/off switch for cheques that's going to be thrown tomorrow. Cheques dying out is a few years away yet, by which time there will be other methods available. As said, the National Payments Plan calls for there to be readily available alternatives in place, and small businesses are an example.

But, for a bit of anecdotal evidence: my brother runs his own business, and hasn't taken cheques for payment of invoices issued after December 31st, 2007 (he wrote to his customers explaining that after that month's invoices, he would require payment by transfer, card or cash on premises).

He had difficulties in getting it through to people - he does business with Interserve, a major PFI contractor, who apparently missed the letter and sent a cheque anyway. After getting the cheque returned AND an indemnity signed, they paid by transfer. No actual complaints, though.

Extant

lr1277 wrote: »

Transfers are not difficult but see the point about onus.

And it is not the hassle of writing the number down correctly, but the fear of mistyping a digit or more likely transposing two digits.
I am fairly certain I have seen threads on here about people miskeying the account number or sort code and the money leaving their account and not bouncing back.

I addressed this very point.

Whilst it may have happened in the past, Faster Payments has the bounce feature built in. BACS was designed otherwise.

BuddyBonthenet

BarclaysManager wrote: »

So there in no better position using cheques than they are funds transfers - they still have no method to see whether or not the funds have been cleared.



Emphasis on has been. Anyway, this is a circular system: the fact is, by and large, people just do not use cheques any more. As said before, cheques are just over 5% of non-cash transactions. They're not used on the wider scale.

People only use cheques because other people demand them. If people worked out how to receive payments in a different way, the need would disappear.



Write stuff down? "Spoke to X on DD/MM, agreed to transfer funds by DD/MM, will check with treasurer in one week..."

Added benefit of not having lots of little bits of paper floating around.



Again, it's a circular situation: people demanding cheques makes people use cheques.

The core of the argument is this: cheques offer no advantages over other freely available methods.

People are also treating this scenario as if there's a big on/off switch for cheques that's going to be thrown tomorrow. Cheques dying out is a few years away yet, by which time there will be other methods available. As said, the National Payments Plan calls for there to be readily available alternatives in place, and small businesses are an example.

But, for a bit of anecdotal evidence: my brother runs his own business, and hasn't taken cheques for payment of invoices issued after December 31st, 2007 (he wrote to his customers explaining that after that month's invoices, he would require payment by transfer, card or cash on premises).

He had difficulties in getting it through to people - he does business with Interserve, a major PFI contractor, who apparently missed the letter and sent a cheque anyway. After getting the cheque returned AND an indemnity signed, they paid by transfer. No actual complaints, though.

I'm not going to say "It doesn't work like that." when it comes to organising events, etc. because as you say this isn't going to happen tomorrow and by the time it does technology will have moved on too. We just need to remember the 'little guys'.

ahai1

Inactive you might be interested to know that I saw a HSBC branch which was closed and had it's lights on so much for going green.

It appears that the problem over the cheques at the craft fair has been sorted.

BuddyBonthenet

ahai1 wrote: »

Inactive you might be interested to know that I saw a HSBC branch which was closed and had it's lights on so much for going green.

It appears that the problem over the cheques at the craft fair has been sorted.

Don't be like that - I was just using that as an example - I don't even organise craft fairs!

ahai1

The thing is you are organising craft fairs or anything else a number of possible solutions have been given.

BuddyBonthenet

ahai1 wrote: »

The thing is you are organising craft fairs or anything else a number of possible solutions have been given.

We are going to have to agree to disagree about that - at least for a few years anyway.

PROLIANT

Business rely on cheques for paying invoices etc, I like cheques because I can create a "cash slow" payment and delay payment to a payee for up to 5 banking days, I can stop the cheque if want to and post it to somebody and not worry about it being stolen as the cheque is only useful to the payee.
Cheques should be kept as a payment system and although they are costly to produce the banks should charge customers for the privilege of having a cheque book.