Cheques To Be Paid In Via Smartphone

maniacmartin

I too instantly thought of the fraud possibilities that that this scheme may allow upon reading the article.

I've never had a problem posting any received cheques with a paying in slip to my bank if I can't visit in person. (It does cost the price of a stamp though).

Archi_Bald

1jim wrote: »

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.

If customers want them, then those customers who do should be paying for them. E.g. £5, or may be even £10, for every cheque book they order. That would just about cover the paper, printing and mailing.

1jim

I do already pay for them, it's just the charge is hidden in the interest rates etc

Are you going to pay separately for your electronic payments? Direct debits? Debit card transactions? None of these are free.

Buzby

For those that say it will be a 'fraud magnet' overlook the US experience where this has not been the case, but led to a different (and disturbing) evolution.

My bank (BoA) allow business customers to even skip the stage of forwarding the photo of the cheque, by letting them use the account numbers and sort code to electronically debit the cheque supplier, they also retain the cheque as their authority to debit. Customers proactively opt-out of this process if they wish their cheques to be handled conventionally. Further, they (the cheque recipient) invariably asks to retain the data to ease subsequent payments. There is an opt out for this too.

Only a bank transfer allows the creditor to remain in control, anything else means the merchant can help themselves without intervention of the customer. As pay by card and DD's are all able to be processed without customer sanction.

I have a feeling this is the bigger picture, and we're not being told the planned evolution.

Archi_Bald

1jim wrote: »

I do already pay for them, it's just the charge is hidden in the interest rates etc

Are you going to pay separately for your electronic payments? Direct debits? Debit card transactions? None of these are free.

Trouble is, I also pay for your cheques. I don't want to do that but I am quite happy for you to use cheques if you pay for yours all by yourself.

Electronic payments don't require trees to be hacked down, ink to be used on expensive hardware, people to operate the hardware, people to put your cheque book into an envelope, mail vans to ship your cheque book, people to process your cheques. I.e. they are already vastly cheaper than cheques could ever get - and yes, I know, we are paying for electronic payments as well. Which is quite ok, I am very happy to pay for what I use. But I object having to pay for things I don't use.

Former_MSE_Darryl

"People will be able to pay in a cheque by sending a smartphone image of it to their bank under Government proposals...."

Read the full story:

Cheques set to become payable via smartphone photos




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Hominu

Archi_Bald wrote: »

If customers want them, then those customers who do should be paying for them. E.g. £5, or may be even £10, for every cheque book they order. That would just about cover the paper, printing and mailing.

Rather than charging for the chequebook, banks should instead charge for accepting and processing the cheque, which for businesses already happens (I think its about £1 per cheque).

I disagree that I should be charged for the act of writing out a cheque, when its the companies that typically request them. For example, the company that services my boiler likes to be paid by cheque as they don't like carrying too much money around, my solicitor asks me to send them a cheque to start proceedings, the house surveyor requests a cheque as he doesn't want to be paid in cash, heck even the local school requests cheques as they don't want kids taking too much cash to school.

The only alternative is electronic transfers, and most tradesmen don't accept such transfers due to the hassle involved - people entering account numbers wrong and then saying "I've paid you, it's nothing to do with me". People sending test payments and then ringing up asking to see if its been received, forgetting reference numbers, etc. Cheques are much easier for both parties.

One thing I would agree on would be excessive cheque writing. Give customers 1 free cheque book each year with perhaps 24 cheques. If you need more than that, then charge £7.50 for each additional book of cheques required.

Or, maybe offer people to print their own cheques if they have a suitable printer, as it's probably going to be scanned with a phone anyway.

1jim

Archi_Bald wrote: »

Which is quite ok, I am very happy to pay for what I use. But I object having to pay for things I don't use.

So, are you proposing moving to a system where all transactions become payable? Every time you send a payment? Every time you phone the bank, every time you get a statement? Every time you set up/amend/delete or pay a standing order or direct debit. Every time you make a debit card payment, every time you make a credit card payment? Every time you go into the bank, use the cash point, speak to counter staff? Because I don't use all of those services s don't see why I should pay for them!

As an aside, do you think that if banks ever did follow your suggestion and charge for the cheques that they would actually pass this saving on to you? Do you really think that you would "pay less" for your banking by not using cheques?

Archi_Bald

Hominu wrote: »

For example, the company that services my boiler likes to be paid by cheque as they don't like carrying too much money around, my solicitor asks me to send them a cheque to start proceedings, the house surveyor requests a cheque as he doesn't want to be paid in cash, heck even the local school requests cheques as they don't want kids taking too much cash to school.

Only the window cleaner wants a cheque where we live. So we changed window cleaner to one that allows us to pay by debit card or bank transfer.

Hominu wrote: »

Or, maybe offer people to print their own cheques if they have a suitable printer, as it's probably going to be scanned with a phone anyway.

I like that idea.

Morglin

Also sounds like an excuse/reason to shut even more local branches, and lay off more staff.

Lin