Cheques To Be Paid In Via Smartphone

spenderdave

ALL cheques are photoscanned by the banks anyway for archive purposes as part of the cheque clearing process. If banks claim they can reduce the clearance time to 2 days by processing an image from a smartphone, why on earth can't they do the same from the scanned image they themselves make.....?
I agree, it will be a fraud magnet. And even though I don't have a smartphone I very rarely receive cheques either.

innovate

chambta wrote: »

Seems an odd development to me.

It's probably the next best alternative in terms of costs for the banks, next best to getting rid of cheques altogether, which they can only do once the last significant number of holders of cheque books have passed away. This will inevitably happen, probably within the next decade (including in the US).

The Smartphone scanning is most likely a huge cost saver, allowing the banks to scale down the number of people needed to handle cheques. It's not being done to revive cheques as a payment method.

innovate

spenderdave wrote: »

If banks claim they can reduce the clearance time to 2 days by processing an image from a smartphone, why on earth can't they do the same from the scanned image they themselves make.....?
.

The existing system doesn't exchange the images, they still exchange paper. So a huge change in processes, and supporting IT systems, would be needed. It is almost certainly cheaper to buy a reasonably tried and tested system from the US. And in the process, completely eliminate the people and equipment cost associated with the handling of physical pieces of paper and the scanning - all being done by the customers. Must be a gigantic cost saver.

As to the Smartphone scanning to offer new opportunities for fraud: I am certain people will try. But as someone already commented - this isn't an untried system and therefore it is streets ahead of your would-be fraudster. The nice thing is that at least one party to the fraud (and most likely the main one) is inextricably linked to a name, address and bank account, so the fraud squad will have an easy job catching the smart alecs.

Cue the MSE threads headed something like: Cheque not cashed, bank account closed without warning! HELP!

ic

Archi_Bald wrote: »

Looking at it from consumer point of view: I reckon that a lot of those who still like to use cheques probably don't even have, or want, a smartphone, let alone a banking app on their smartphone.

The people scanning the cheques will be those reluctantly receiving them - not the people writing them. This a is a win-win - old folks can still write cheques, and people who get paid with them can get their money faster.

Gromitt

Archi_Bald wrote: »

With cards or faster payment, they can get their money the same day

Depends on the payment provider. Some will only pay you once per month for card payments they have processed, and if you get a fraudulent payment, they can withhold up to 4 weeks of payments whilst they investigate.

Archi_Bald

ic wrote: »

The people scanning the cheques will be those reluctantly receiving them - not the people writing them. This a is a win-win - old folks can still write cheques, and people who get paid with them can get their money faster.

Point taken, it's predominantly older people that want to write the cheques, rather than receive them.

Though not all older ones like cheques - - I am one of the older generation but haven't written a cheque in about 7 years now. Would have a job to even find any cheque books now but I think they are somewhere at the back of the safe.

Wilkins

Archi_Bald wrote: »

Point taken, it's predominantly older people that want to write the cheques, rather than receive them.

Though not all older ones like cheques - - I am one of the older generation but haven't written a cheque in about 7 years now. Would have a job to even find any cheque books now but I think they are somewhere at the back of the safe.

I don't much like cheques either but I still find instances where I prefer it. For example, starting a savings account where only one deposit is allowed --I'm reluctant to do a big electronic transfer without a small tester in case I screw up.

Archi_Bald

How many of such accounts do exist? In any case, though, you have to figure out another way because cheques won't be around forever.

Gromitt

Archi_Bald wrote: »

How many of such accounts do exist? In any case, though, you have to figure out another way because cheques won't be around forever.

They'll probably do the same as Nationwide did for their MySave account once cheques are abandoned forever - tell you to put your initial investment into your current account (which you need to for the cheque anyway) and they'll DD the funds out.

1jim

I still use cheques and am not one of the older generation, the kids school still want cheques or cash for trips and extra activities, they take electronic payments for school meals but nothing else, and to be honest cheques for this kind of thing are easier, no logging into the internet bank, setting up new payee, verifying the payee (either using a phone code, security code generator or password depending upon bank) and then checking to make sure sort code/account number/reference number are all correct.

Also handy for tradesmen, plumber who did gas servicing, the electrician etc all happy to accept cheques around here. I always use the phrase, "how do you prefer paying" and without fail the answer has always been cheque is fine please.

I was glad they stopped the folly of trying to do away with cheques, yes, I'm sure it's cheaper for banks not to have to process them but it still seems like their customers want them. Anything that speeds up the process of clearing them will be welcome and I won't have any problem with sending them a photo of the cheque but suspect this will have to run alongside a manual system for those unable to scan in photos