A replacement for cheques?

Owain_Moneysaver

simongregson wrote: »

Surely what you have described is in effect the same as a cheque

It is a cheque (or a bill of exchange), and banks usually have in their T&Cs that they refuse to accept cheques that aren't on their preprinted cheque forms.

jimbob_too

Owain_Moneysaver wrote: »

It is a cheque (or a bill of exchange), and banks usually have in their T&Cs that they refuse to accept cheques that aren't on their preprinted cheque forms.

Ah right, thanks - that's the answer I was looking for. I think that postal orders could be making a comeback!

I actually heard another item on the radio concerning this subject (I think it was 'Moneybox' on Radio 4). The presenter was discussing the end of cheques with a representative of the banking industry. He asked her what provision there would be for a tradesman at, say, a country fair some distance from an ATM and out of the reception area for a 'chip and PIN' machine. How could he accept payment for some expensive agricultural machinery? The banking representative wasn't able to answer this question satisfactorily.

CLAPTON

ok the figure are from 2008

but 3.8 million cheques issued each day... assuming 250 working day per year then that's 950 million per annum

they estimate that by 2018 the volume will drop to 1.6million per day (about 400 million per annum)

one might think that these numbers show some demand for these services

http://www.ukpayments.org.uk/resources_publications/key_facts_and_figures/cheques_and_bankers'_drafts_facts_and_figures/

Hazzanet

jimbob_too wrote: »

The banking representative wasn't able to answer this question satisfactorily.

That was Sandra Quinn, the Director of Communications at the UK Payments Administration (formerly APACS). Whilst I'm not normally one to launch a personal attack, I'm afraid to say that she's not the best person to represent the banks. She was one of the people who were sent out to deal with media queries regarding Chip and PIN, and even in that context she monumentally failed to answer questions in a complete or convincing fashion. Same with the abolishment of cheques too, it seems.

glider3560

I hope you don't mind me using your post as an example of the other payment methods we already have:

usedandabused wrote: »

pay my tab with a cheque at my local pub, do this monthly

They could start taking credit/debit card payments or you could pay them by bank transfer.

usedandabused wrote: »

pay the window cleaners monthly via cheque.

I assume it is the same amount each month, so a standing order would be easier here.

usedandabused wrote: »

the builders doing my driveway, paying cheque, i would never hand over cash, cheque offers me some protection at least.

Bank transfer? Even if you don't bank online or by phone, this can be arranged at your branch counter.

usedandabused wrote: »

I donate yearly to my local boroughs disability carers, not much, £50 a year, pay by cheque, also am in the process of doing a part time home course, the additional books i need to purchase, and they prefer payment in cheque.

Bank transfer again?

usedandabused wrote: »

my mobile bill i send a cheque, even though i only get charged for what i use, no matter how small i send a cheque, same with my water rates, cheque always sent.

Pay at the bank counter, at a Post Office or at a PayPoint outlet.

I think that people will need to get used to the sender doing the work (i.e. making the payment, e.g. by going online or to a branch), rather than the current system where the recipient does the work (i.e. cashing the cheque). People don't seem to like change in this country.

simongregson

The problem for traders is how do you know the customer is going to make the payment. For example, my gas man gives me the bill, I give him a cheque. OK, it might bounce, but this will cost me £25 quid ish so most of his cheques do not bounce.

Or the current alternative. Here is your invoice. Thanks very much, I'll get onto paying it via internet banking when I next log on... Several weeks later, phone calls etc.

If it is going to work, there has to be a way to authorise them to debit your account a set amount, debit cards could do this, if fees were reduced and terminals were made available to every business without substantial charge, the banks could use the savings from shutting down cheque clearing to do this rather than paying themselves a fat bonus?

anniecave

Cheques tend to be used by people who are either housebound or almost so to pay people who get them things, eg their shoppping. Try to find a replacement for that one. And no the person concerned probably doesn't have internet banking and certainly not internet on their phone! Those same people may also have a "cheque cashing service" with someone eg a friend who can give them money in exchange for a cheque so they have money for smaller amounts too.

I'm sure within the last year I tried to open a savings account and one of the forms of ID was a cheque from the bank account I wanted linked to the savings account. I guess that's a banking problem!

I would agree with the builders etc and window cleaners, it seems more secure (at least they have to give you a name to make the cheque payable to) also they know you've paid and you know you've paid and there's no chasing up needed.

Alpine_Star

Hazzanet wrote: »

That was Sandra Quinn, the Director of Communications at the UK Payments Administration (formerly APACS). Whilst I'm not normally one to launch a personal attack, I'm afraid to say that she's not the best person to represent the banks. She was one of the people who were sent out to deal with media queries regarding Chip and PIN, and even in that context she monumentally failed to answer questions in a complete or convincing fashion. Same with the abolishment of cheques too, it seems.

I completely agree. She is uncompromisingly unconvincing.

Her justification for the end of cheques? ''We need to find an alternative''.

She couldn't reason her way out of a sopping wet paper bag with holes in.

spenderdave

This issue is going to roll on and on.... One area constantly omitted from the discussions is churches and other organisations where two signatures are required on all payments - and this is a requirement of the charities commission so cannot easily be changed. OK, in due course these organisations may develop a viable alternative but for the moment cheques are the only way for most payments. Also because of this requirement although our church has internet banking access it is only for viewing and payments cannot be made this way (the bank has set it up to prevent payments).

Myself, running a micro business, card payment machines are out of the question because of cost. However most people pay me in cash anyway.

glider3560

How do elderly people, charities, churches, windows cleaners, etc manage in Germany, Belgium, Austria and the Netherlands? They haven't used cheque for years