MSE News: Cheques will NOT be axed after U-turn

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  • rb10rb10 Forumite
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    edda wrote: »
    Nationwide were one of the 1st to withdraw the cheque guarantee card. :mad:

    Eh? Nationwide cheque guarantee cards were valid up until 30th June 2011, just as with every other bank...
  • eddaedda Forumite
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    rb10 wrote: »
    Eh? Nationwide cheque guarantee cards were valid up until 30th June 2011, just as with every other bank...

    No - mine was replaced earlier than this - due to it's expiry date.

    I haven't had the guarantee logo since 30th June 2010. The new card (valid from 1st July 2010 - which I still have) has no guarantee with it.

    I guess this phased roll-out was to save a mass migration all at once. Didn't get much publicity, did it?
  • icic Forumite
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    I can see long term the banks will push people away from cheques with processing fees - say 50p per transaction to pay or receive a cheque. Businesses have long had processing costs on cheques (perhaps with a free number per month) - so this will extend down to retail customers too.
  • darkh0rsedarkh0rse Forumite
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    plenty of my customers still pay by cheque. I have gradually been nudging them over to bank transfers and plenty have gone for it. However, many won't or can't do it

    Well if cheques don't exist they'll HAVE to pay you another way. They're just resisting the change now because they don't need to. Destroy cheques and they will pay you in cash or bank transfer, they're hardly gonna say "I can't use your services now since cheques got taken away".

    I'm self employed and in most situations I would politely inform people I didn't accept cheques at an early opportunity so that neither of us faced any awkward "oh, I don't take cheques" situations.

    The one time I ignored my own rule, guess what, IT BOUNCED!!! Thankfully I represented it and it cleared on attempt two without having to go back and contact the customer. That's £30.00 ish extra charge they incurred for issuing a bouncy.

    100% disappointed about the u-turn.
  • I run a small charity lottery and I'm delighted cheques are staying as it would be really difficult to pay the winners. Cash is logistically impossible and people just do not like giving their bank details so paying direct into their bank accounts isn't an option either. Plus it means I can still get a cheque from my mum for my birthday!!;)

    Ironically, the bank details are on the cheques anyway. Also, they are displaying their signatures, so cheques may well be less secure than bank transfer.
    As for the cheque from your mum, I hope you get her to put her card details on the back :D
  • darkh0rse wrote: »
    Well if cheques don't exist they'll HAVE to pay you another way. They're just resisting the change now because they don't need to. Destroy cheques and they will pay you in cash or bank transfer, they're hardly gonna say "I can't use your services now since cheques got taken away".

    I'm self employed and in most situations I would politely inform people I didn't accept cheques at an early opportunity so that neither of us faced any awkward "oh, I don't take cheques" situations.

    The one time I ignored my own rule, guess what, IT BOUNCED!!! Thankfully I represented it and it cleared on attempt two without having to go back and contact the customer. That's £30.00 ish extra charge they incurred for issuing a bouncy.

    100% disappointed about the u-turn.

    Like you, I would be far happier if all my customers paid by cash or bank transfer. Cheques cause me more work. I scan them (6 per A4 sheet - 3 per side), make a note next to them as to which customer address or invoice number each cheque relates to. I then fill in a sheet in the paying in book and put the cheques and the paying in slip into the banking envelope. Then I go to the bank with my debit/ATM card to make the deposit. Fortunately, I can do this out of hours and I live only a few minutes walk from a branch. I deposit cash (notes only) the same way. All bank transfers would be far better for me.
    However, I have many elderly (and some not so elderly) customers who wouldn't know where to start with bank transfers. I also have some customers who say that they just don't trust the internet. These ones I try to encourage to use telephone banking.
    Another issue is that when Royal Mail goes on strike/works to rule, my cashflow is affected if too many are posting cheques.
    Bit by bit I am nudging people over to bank transfers - even though cheques will be around longer.
    Unlike you, I am reluctant to force the issue though. I believe that some customers would cancel if I did so.
  • LokoloLokolo Forumite
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    IceQueen wrote: »
    rb10, in the time you’ve spent posting on this thread, you could have gone to the bank. Stop being so selfish, there’s a lot of people out there who want to use cheques, including me.

    I was recently owed some money by a firm of solicitors who’d wrapped up my late mum’s estate. They offered to send me the money electronically to my bank but said that this would cost me £20. I asked for a cheque instead which cost me nothing. What would you have done?

    Asked for a free BACS transfer instead of the CHAPS. Saved myself a trip to the local branch which would involved; petrol, £1 parking, my time.
  • IceQueenIceQueen Forumite
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    Originally Posted by tabby cats mum
    I run a small charity lottery and I'm delighted cheques are staying as it would be really difficult to pay the winners. Cash is logistically impossible and people just do not like giving their bank details so paying direct into their bank accounts isn't an option either.
    Ironically, the bank details are on the cheques anyway. Also, they are displaying their signatures, so cheques may well be less secure than bank transfer.
    Paul, I think you’ve missed the point here. Unless the winner is willing to give his or her bank account details the only way the charity can pay the winnings is to issue a cheque. The bank account details on the cheque would be the charity’s not the winners, as would be the signature. Tabby cats mum is therefore perfectly correct.

    Take away cheques and charities will suffer real hardship.
  • pmdukpmduk Forumite
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    Icequeen you accuse rb10 of being selfish when you want to perpetuate a system which costs bank customers a huge sum of money each year.
  • IceQueenIceQueen Forumite
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    Thank goodness this is still a free country and that if people want to continue to use cheques they will be able to do so, despite the protests of a few whingers.
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