Replacing cheques

derrick

glider3560 wrote: »

They wouldn't need a cheque. Most only use it as an "old fashioned" ID check. There are much more modern checks that can be done that won't need a cheque - even a bank transfer from an account in your own name would work.

I agree, but as of this moment in time, ("old fashioned" or not, still being used so not really "old fashioned"), you cannot open a new account without providing a personal cheque on your nominated account, are you suggesting this will not be a requirement when/if cheques disappear? If you are saying yes, then without some sort of official confirmation, it can only be your thought.

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glider3560

derrick wrote: »

you cannot open a new account without providing a personal cheque on your nominated account

Many banks/building societies don't need a cheque already.

Halifax opened all of my accounts online without a cheque.
National Counties Building Society will accept a debit card to open the account.
First Direct opened an account by post and then accepted the initial deposit by bank transfer.

jen245

Ive opened several bank/savings accounts over the last 10 years, and have never needed to provide a cheque for any of them, all of them have been funded by either BACS or more recently FP

rb10

derrick wrote: »

are you suggesting this will not be a requirement when/if cheques disappear?

It's surely fairly obvious that when there are no cheques, banks won't be asking customers to provide a cheque to open a new account!

derrick

rb10 wrote: »

It's surely fairly obvious that when there are no cheques, banks won't be asking customers to provide a cheque to open a new account!

Yes was rather clumsy way of putting the Q and you did edit the sentence, but they might not disappear, they do keep moving the time scales!


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DavidHayton

Loughton_Monkey wrote: »

Currently, I can 'trigger' a transfer to your account by these methods (and probably more)..

- Write you a cheque.
- Prepare electronic instructions to my bank by Internet banking.
- Put my visa debit card into your machine.
- Telephone my bank.
- Verbally tell the teller in my branch and sign a piece of paper.

Countries like South Korea (with an excellent banking system - totally 'real time' and electronic) do not know what a cheque is. This has never staunched trade or commerce.

My own view is that the banking world in 2018 will survive, using the following tools in addition to what we have now:

1. Total Faster Payments on everything. [Process already started].
2. Cash Machines will allow transfers just like Internet Banking.
3. For the isolated/luddite/granny clients ...

It's really just a matter of 'process'. We should easily get to a situation in which 99% of transactions can be done Internet/telephone/cash machine.... For the remaining 1%, there will remain a 'cheque' system. But it's just the the cheque system will be developed:

Thanks Loughton for a comprehensive account of the system. I agree with you that there will always be cheques, the question will be how much will they cost (the payer and the payee) and how long will the process take without the clearing house system.

What our present system seems to lack (in my opinion) is a system where I can send somebody money without knowing their bank account number. If I want to send somebody some money via CHAPS, BACS or Faster payments, I have to enter their sort code and account number (and woe betide me if I get them wrong).

The Canadian banks have come up with an interesting method they call interac e-transfer where I get my online banking system to send out an email to the payee. The payee then forwards this email to their own bank which then pulls the money through. You can read about it here: http://www.interac.ca/consumers/productsandservices_ol_eTransfer.php

Best wishes to all
David

rb10

derrick wrote: »

Yes was rather clumsy way of putting the Q

I take it you meant to say something different then?

derrick wrote: »

and you did edit the sentence

It surely didn't change it's meaning though?

derrick wrote: »

but they might not disappear, they do keep moving the time scales!

As far as I am aware, they haven't moved the timescales at all. It was always 'review in 2016 for a possible closure in 2018'.

NFH

derrick wrote: »

I agree, but as of this moment in time, ("old fashioned" or not, still being used so not really "old fashioned"), you cannot open a new account without providing a personal cheque on your nominated account

Not true at all and it never has been. If this were the case, you'd never be able to open your first bank account, because the bank would require you to have an existing account elsewhere on which to draw a cheque.

derrick

NFH wrote: »

Not true at all and it never has been. If this were the case, you'd never be able to open your first bank account, because the bank would require you to have an existing account elsewhere on which to draw a cheque.

There is always the exception to the rule, and we are all guilty of generalising, I should have said most accounts, but maybe they are now coming into the 21st century and moving away from requiring a cheque.

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rb10

derrick wrote: »

There is always the exception to the rule, and we are all guilty of generalising, I should have said most accounts, but maybe they are now coming into the 21st century and moving away from requiring a cheque.

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I wouldn't even say that it's most accounts.

But these providers' options will be simple once cheques are abolished:

1) Find another means of accepting the opening deposit; or
2) Stop opening new accounts.

I can't see many places choosing (2)...