How should I pay tradesmen over £5000?

keith969

glasgowdan wrote: »

O A cheque is no safer than cash in hand

Sorry, but that's rubbish.

A cheque can only be paid into the account of the person who it is written to, so if lost or stolen provides more security than cash. When was the last time you heard of someone being robbed of a cheque? A cheque can be stopped. A cheque leaves a trail of evidence... A cheque means the money stays in your account until it's paid in by the recipient.

Which one you use is up to you and the tradesman - I always ask which method they prefer.

Mr.Generous

I usually offer bank acc details for customers to pay, people assume you want cash, I prefer all money in and out of business account and I HATE cheques. Makes life easier.

ThinkingOutLoud_2

keith969 wrote: »

Sorry, but that's rubbish.

A cheque can only be paid into the account of the person who it is written to, so if lost or stolen provides more security than cash. When was the last time you heard of someone being robbed of a cheque? A cheque can be stopped. A cheque leaves a trail of evidence... A cheque means the money stays in your account until it's paid in by the recipient.

Which one you use is up to you and the tradesman - I always ask which method they prefer.

True.
BUT a cheque to J Smith can be paid into James, John or Janice's account if they get their hands on it.

A Bank Transfer can go direct to the account of the person who gave you the details. And the money is there faster with proof you paid and they got it available.

phoebe1989seb

Apodemus wrote: »

What?! I've not used a cheque in years! Since internet banking came in I pay nearly everything by bank transfer. I can't believe I am alone in that?

I can't remember the last time we paid anyone by cheque either. Most of the work we've had done recently that required trades we found they preferred either cash or bank transfer. In fact I do actually recall paying one by cheque back in about 2005 - for rewiring work - and he returned it saying he wanted cash

On the subject of cashing cheques - DH was due a PPI refund a few years ago. The cheque with DH's initial and surname was sent to the wrong address and it later came out that it was cashed in by someone purporting to be DH, (using a christian name that was different to DH's) at one of those cheque cashing facilities.

Doozergirl

I get paid by bank transfer. No one has offered me a cheque. I wouldn't know what to say to avoid embrassing them.

Every tradesperson is paid by bank transfer too. No one has ever asked me for a cheque either.

Don't take credit cards and won't be doing so either. I don't know any tradespeople that do. Expense for nothing. Clients need money in the bank, not credit.

OP just pay on receipt of an invoice. Then you have the proof of what was paid for.

keith969

ThinkingOutLoud wrote: »

True.
BUT a cheque to J Smith can be paid into James, John or Janice's account if they get their hands on it.

Indeed. But think about it: you'd have to either have an account with a matching name (how likely is that) or willing to set one up in order to pay in a cheque not intended for you. And that account would be traceable by the banks if so. There's much more security there than 'cash in hand'.

Bank transfers are of course even more secure as they can only go into the account of the intended recipient.

In jobs I've had done in the last few years about a third have asked for a cheque, a third bank transfer, and a third cash (for smaller amounts less than £200).

moneyistooshorttomention

Not just "old people" that pay by cheque sometimes still - a lot of us younger ones do too.

Surprised to hear how often people pay by bank transfer these days. I hadnt realised it had become so "normal".

I've only ever had one workman even mention bank transfer - and that was one that was muttering nervously about which way I intended to pay and he hoped I wasnt thinking of doing a bank transfer (as he doesnt like them and won't accept them). There was a smile of relief on his face when he saw a cheque book waiting there on the counter to be filled in instead.

What would the process be for paying by bank transfer if one doesnt do online banking and doesnt have "phone apps"?

I'm wondering if it is actually possible to do so without one/both of those things - and therefore I'd never be able to pay them then except by cash, cheque or card (and, obviously, cash isnt possible for anything other than a minor job - as it takes a lot of doing to get cash out at the rate of several extra withdrawals a week to one's own cash if nearest branch of one's own bank is some distance away).

newbie1980

im a electrician and i find the elderley like to pay by cheque but more and more of the others are now paying by bank transfer and i now have my bank details on the bottom of the invoice

moneyistooshorttomention

newbie1980 wrote: »

im a electrician and i find the elderley like to pay by cheque but more and more of the others are now paying by bank transfer and i now have my bank details on the bottom of the invoice

So how do customers (elderly or us others) arrange to pay the bill into your account then?

Do they have to telephone their bank and say "Please pay £x into account y"?
(now thinking - "....and how do they manage to do that without being held in a long phone queue to get through to the operator? Whereas it would take them literally one minute to write a cheque out"). Bearing in mind the elderly and the rest of us might not have online banking?

Doozergirl

moneyistooshorttomention wrote: »

So how do customers (elderly or us others) arrange to pay the bill into your account then?

Do they have to telephone their bank and say "Please pay £x into account y"?
(now thinking - "....and how do they manage to do that without being held in a long phone queue to get through to the operator? Whereas it would take them literally one minute to write a cheque out"). Bearing in mind the elderly and the rest of us might not have online banking?

Go and queue in the bank like you expect the tradespeople to do?

I'm sure people might make exceptions for the genuinely infirm, but a cheque just isn't regarded as a solid payment anymore.

Payment on a certain day or on completion does not mean "sometime next week if you can make it to the bank and wait endlessly for it to clear, as well as hope it doesn't bounce"

Those able to work a computer can get internet banking and then it's easy for everyone - which is why it's so common!