MSE News: Cheques to disappear by October 2018

olly300

james_joyce wrote: »

So we need to get rid of cheques even though they are not a problem?

The cheque system is expensive to run hence they are a problem to banks and BS.

Cheques were a problem to large retailers hence they stopped taking them.

Other countries manage without them so we can.

noh

spenderdave wrote: »

...............................
Little has been said also about passing cheques for large amounts for say opening savings accounts or deposits for house purchases, or for that matter buying expensive cars. OK some of these things are already done via BACS transfer, but often they are not and the amounts are usually way above what is allowed in normal internet bank accounts.

...

I have used a debit card for new car purchase in the past limited only by the amount in the account. The same for deposits to savings accounts.
For large amounts usually associated with house purchase CHAPS is available.

Extant

John_Pierpoint wrote: »

Any body care to explain how the "very old" (defined as over 80 and the fastest increasing sector of the home grown population) manage in Holland Scandinavia etc. with their poor memory, wobbly hands and failing eyesight?

With great difficulty, as they do here with cheques.

As someone has said, bringing up the elderly is nothing more than labeling them as "change resistant simpletons." The frailest in our society are always going to have trouble, cheques are not some magic cure.

Even if they were, the elderly population (still a minority userbase) does not justify maintaining an entire payment system. Especially when you consider that increase among the elderly will decrease further and further over time. It's not as though you turn 60 and magically hanker for a chequebook, after all.

John_Pierpoint

Loss of memory works like someone going backwards through the family photo album, tearing out photos at random STARTING WITH THE MOST RECENTLY ACQUIRED SKILLS.

Both my mother and my uncle could write cheques long after they lost keyboard skills (In fact I had to hide my mother's cheque book, because she could still write cheques long after she had lost the ability to remember why she was writing them).

Only when you get to the stage of not being able to remember you signature, does the funny farm become inevitable.

glider3560 wrote: »

I believe in Germany, since the 1970s, they have been issuing slips of paper at banks. The sender goes to the bank and fills in a slip with their account details and the recipient's account details. You simply go to the counter and they process the transfer. Ideal for older people who don't bank online - no more fiddly than a cheque but allows the payment to be processed electronically (along with all the benefits of this). Seems like a very reasonable alternative to the cheque for people who don't/won't bank online or over the phone.

As long as you are not house bound and you don't live in a small town where all the banks have closed down.

Extant

I'm a bit lost as to what your point is now with regard to cheques and their being phased out. Now you're saying cheques are a liability when old people are concerned?

Even if keyboard skills are lost, I doubt the ability to touch is - my grandfather loves his iPhone. It also strikes me, layman as I may be in these matters, that a computer may be a significant step forward in supporting those with difficulties, if packaged correctly - you can fit a lot more information on a, say, 13" touch screen than you can on a cheque counterfoil.

james_joyce

Why not give people the option of a computer screen or a cheque counterfoil? As I've said I use both quite happily. Lots of new technology has been developed whilst cheques have still been around, and no doubt lots of other new technology can be as well. The existence of cheques doesn't stop other things happening.

james_joyce

Noble_Savage wrote: »

Why bother developing solutions to something that hasn't been given a closedown date?

Lots of other solutions have been developed already, as I say.

savagej

I commented earlier but have not read through the entire post since so dont know if somone has suggested this.

It has been mentioned that Postal Orders now have barcodes and you simply have it scanned at the Post Office where it shows the counter assistant if it is valid and you get your money.

Why not change the system to just that, there are more Post Offices than banks. They could be sent out in books, are there not plans to turn the Post Office into a bank? and not the Bank of Ireland.

Is this much different to paying your bills at Post Offices and Paypoints with barcoded bills. I dont think I have done much at a Post Office in recent times that did not involve a barcode and the computer capturing data in real-time. I know if you pay a Virigin Media one at a Paypoint using a barcoded bill they get the money within 24 hours, no 3 working day turn around time.

Bring back Girobank, just an updated one?

Please don't flame me, thanks.

Extant

james_joyce wrote: »

The existence of cheques doesn't stop other things happening.

Yes, it does. Implementing new payment systems is far from cheap. They cost in the billions to develop the technology, pay for the man hours, formalizing standards, making the system secure, etc.

If you want a nice example of how the industry won't invest this money unless pushed - regardless of the pros and cons of whatever currently exists - take a look at BACS and FPS.

Extant

savagej wrote: »

I commented earlier but have not read through the entire post since so dont know if somone has suggested this.

It has been mentioned that Postal Orders now have barcodes and you simply have it scanned at the Post Office where it shows the counter assistant if it is valid and you get your money.

Why not change the system to just that, there are more Post Offices than banks. They could be sent out in books, are there not plans to turn the Post Office into a bank? and not the Bank of Ireland.

Is this much different to paying your bills at Post Offices and Paypoints with barcoded bills. I dont think I have done much at a Post Office in recent times that did not involve a barcode and the computer capturing data in real-time. I know if you pay a Virigin Media one at a Paypoint using a barcoded bill they get the money within 24 hours, no 3 working day turn around time.

Bring back Girobank, just an updated one?

Please don't flame me, thanks.

Barcoded bills have some benefits, and it's certainly a possibility - a standardised bill that can be used to instruct your bank/Post Office to send a payment is a reality in other parts of the world already. When implemented digitally, it gives the option of a paper bill if desired without requiring a physical clearing system.

I'd question the sensibility of providing barcoded cheque books to every customer, though. Although easily implemented for Postal Orders, it's going to be difficult to secure these for the rest of the population on the basis of a barcode alone. It also strikes me that they'd be of limited use if the barcoded bills method was implemented well.