Do any shops accept Cheques ?

Extant

Inactive wrote: »

Why should they, if they are comfortable with using cheques?

Because the personal consumer market, by and large, has ceased using cheques. All that's left for them now is a slow death, and they will indeed die - in the next few years. Customers can either start to prepare now or just have a bit of a shock when it gets to the point that the banks stop issuing new books.

Baldur

BarclaysManager wrote: »

Because the personal consumer market, by and large, has ceased using cheques. All that's left for them now is a slow death, and they will indeed die - in the next few years. Customers can either start to prepare now or just have a bit of a shock when it gets to the point that the banks stop issuing new books.

I must admit that the only cheques that I have issued for many years have been for opening Cash ISAs & other savings accounts.

It will be interesting to see how those institutions which currently insist on an initial cheque deposit adapt to the 'chequeless economy'.

Inactive

Baldur wrote: »

I must admit that the only cheques that I have issued for many years have been for opening Cash ISAs & other savings accounts.
.

Indeed, the Building Societies etc. obviously see them as a secure form of payment method.

I also pay my window cleaner by cheque because that is his preferred payment method, he doesn't like carrying cash around, and he obviously cannot be paid by card.

withnell

ShelfStacker wrote: »

What you described could easily be done with FPS or BACS. And strictly speaking, spending money in advance of an expected credit is the sort of thing overdrafts are meant for.

For a school, they means giving the payment clerk access to the online banking to see the payments coming in - not majorly secure.

I'm very happy to use debit cards for everything, but it costs small shops less to pay in a cheque (that has been guaranteed so is as safe as cash) than to accept a debit card payment (which could then be charged back!)

Extant

Baldur wrote: »

I must admit that the only cheques that I have issued for many years have been for opening Cash ISAs & other savings accounts.

It will be interesting to see how those institutions which currently insist on an initial cheque deposit adapt to the 'chequeless economy'.

Simple: use Direct Debits. Several savings institutions started to do this in recent years. Or, just have the customer initiate a transfer themselves.

Inactive

BarclaysManager wrote: »

Simple: use Direct Debits. Several savings institutions started to do this in recent years. Or, just have the customer initiate a transfer themselves.

But, there are many Building Societies that only accept cheques as a method of initial payment when opening new accounts.

Obviously they see them as a secure method of payment that verifies the details of the new customer.

Extant

withnell wrote: »

For a school, they means giving the payment clerk access to the online banking to see the payments coming in - not majorly secure.

And for cheques, it means having to prepare a credit every week, and then pay a higher price for processing all of the cheques - some banks charge as much as 30p for each cheque, but give automated credits for free. So, assume a lower price of 20p for argument's sake, and a school where 400 parents send in cheques each month. That's £960 a year processing cheques alone.

More to the point, where are you getting this idea of payment clerks from? Just like any other business, a school large enough to employ such a person (likely at least AAT qualified) is not going to be using the bank's bog standard online banking. Banks provide software for such circumstances where multiple people need access.

Anything smaller, and you're just replacing the time spent preparing and banking the credit with checking their banking.

I'm very happy to use debit cards for everything, but it costs small shops less to pay in a cheque (that has been guaranteed so is as safe as cash) than to accept a debit card payment (which could then be charged back!)

Chargebacks are of no real concern if proper procedures are followed. It's not Paypal, certain criteria need to be met for a successful chargeback.

You're also over-estimating the value of guaranteed cheques. They can all be unpaid very easily for technicalities.

Extant

Inactive wrote: »

But, there are many Building Societies that only accept cheques as a method of initial payment when opening new accounts.

Obviously they see them as a secure method of payment that verifies the details of the new customer.

Did you read what I was answering? A point about how they would adapt in a cheque-less economy. Not now where they may insist on receiving cheques, but the future where they will not be able to.

Also, direct debits require you to have a mandate: containing at least a sort code, account number and name. Essentially, all of the same information as on a cheque, and a DDR will be unpaid if these details are wrong. So any idea about verifying identity would be just as valid under this scheme as before, if not more - an electronic audit trail would exist, unlike cheques where the instrument is returned to the paying bank, losing the information contained there-on.

Inactive

BarclaysManager wrote: »

Also, direct debits require you to have a mandate: containing at least a sort code, account number and name. Essentially, all of the same information as on a cheque, and a DDR will be unpaid if these details are wrong. So any idea about verifying identity would be just as valid under this scheme as before, if not more - an electronic audit trail would exist, unlike cheques where the instrument is returned to the paying bank, losing the information contained there-on.

Obviously the Building Societies don't agree with your line of thought, clearly they could have implemented Direct Debit payments years ago, they havn't.

I suspect they like to see a piece of paper with an imprint of the new customers details on it, I am also fairly sure they will keep a photo copy of each cheque submitted.

Anyway, I am fairly sure that the banks will impose upon their customers whatever suits the banks as usual.:rolleyes:

EarthBoy

Inactive wrote: »

Obviously the Building Societies don't agree with your line of thought, clearly they could have implemented Direct Debit payments years ago, they havn't...

Some of them already do. That's the method that was used to open my account with the Newcastle Building Society.

I would dispute your assertion that many building societies insist on accounts being opened by cheque. Some do, I know, but I think it's only a small number of them. Also, if you think the banks will, or even should, continue to issue cheque books just in case their customers want to open an account with a building society then you must be having a laugh. On the contrary, if banks no longer issue cheque books then the few building societies which ask for a cheque to open an account will simply have to drag themselves into the 21st century and change their procedures. Otherwise, nobody will ever be able to open an account with them again and they will go bust because they have no customers..