MSE News: Cheque clearing to be cut to 'next working day'

Former_MSE_Callum

You'll soon be able to clear a cheque by the next working day thanks to a new image-based system being rolled out from today....

Read the full story:
'Cheque clearing to be cut to 'next working day' - and you may be able to pay in using your phone'

Click reply below to discuss. If you haven’t already, join the forum to reply.

mt99

Excellent, and a lot safer to write a cheque - especially for large amounts to new payees - as you can specify the payees name for extra security (unlike faster payments or bacs where the payee name is irrelevant)

[Deleted User]

I thought this had already happened at HSBC at least. We bank foreign cheques which used to take weeks to clear. Over the last year they’ve credited our account the next day.

Mersey_2

Cheques often show as a 'credit' the next day after you bank them, but they aren't cleared at the moment for upto a week.


Hence, sadly the infamous (largely Nigerian) fraudsters who sent cheques for large sums, in order to receive smaller BACs transfers - the cheques subsequently bounced or was stopped of course.

konark

Hurray , they've speeded up cheque-processing.......just as they've phased out cheques!

PeacefulWaters

konark wrote: »

Hurray , they've speeded up cheque-processing.......just as they've phased out cheques!

But they haven't phased out cheques.

Caddyman

PeacefulWaters wrote: »

But they haven't phased out cheques.

No, but they probably should lol!

In all seriousness, I realise that people/businesses do still use cheques, but I personally haven't written a cheque for, well, I cannot actually remember, indeed, I no longer even have any cheque books. Whenever I need to pay anyone these days, my plumber at boiler service time for example, and a debit card or cash isn't an option, he just gives me his bank account and sort code and I do an instant Faster Payment. Indeed, I won't even accept a cheque off anyone these days (though I wouldn't refuse a National Lottery cheque, even if it is only symbolic!) Even HMRC who gave me a substantial refund earlier this year, now pay directly via BACS transfer.

Doc_N

Can't wait for this to become available via an app - amazed that it's pretty much impossible to find a bank that allows you to do it yet, despite its being possible now.

aj23_2

konark wrote: »

Hurray , they've speeded up cheque-processing.......just as they've phased out cheques!

How are cheques being phased out? All banks and some building societies that have current accounts still issue chequebooks.

aj23_2

Caddyman wrote: »

No, but they probably should lol!

In all seriousness, I realise that people/businesses do still use cheques, but I personally haven't written a cheque for, well, I cannot actually remember, indeed, I no longer even have any cheque books. Whenever I need to pay anyone these days, my plumber at boiler service time for example, and a debit card or cash isn't an option, he just gives me his bank account and sort code and I do an instant Faster Payment. Indeed, I won't even accept a cheque off anyone these days (though I wouldn't refuse a National Lottery cheque, even if it is only symbolic!) Even HMRC who gave me a substantial refund earlier this year, now pay directly via BACS transfer.

Just because you don't use them, doesn't mean that no one should be able to. I use between 5-10 a month, and I'm a so called millennial. I don't use apps (it's stupid keeping it all on your phone) and it's an easy method of payment for me and works well for me. If someone said to me 'Sorry but I'm not accepting a cheque off you' then I'd say 'Sorry but you're not getting the money'. However someone wants to give money to you, you should accept it. It's not up to you to dictate how someone pays you. Cheques are the safest method of payment. HMRC only did BACS because you most likely chose that as your option of rebating. You can still choose cheque.

aj23_2

I'm 25 and use about 5-10 cheques a month. If cheques will clear by midnight the following day, great, but it hasn't really affected me waiting 4-6 days.

Makes me laugh that people like the one above say they don't use them so should be abolished. Why does it matter to you if you don't use them? 471 million were written 2016 worth over £551 billion. That makes it a major payment method and a huge value of transactions. People should always have a choice of methods, and that includes cheques.

I use them to pay credit cards, into to branch only saving accounts with a passbook, bills, payments, passport visas, international drivers permit. I would also use for a new passport, drivers license etc. There are actually still a fair amount of savings account whereby you must making your opening deposit by cheque or card for security reasons. Even selling your old phone to a network provider, they still give an option for a cheque.

Cheque is the safest way to pay with the Bank/Building Society name followed by the payee, and their account details on the reverse. Contactless payment fraud has gone up for a reason, it's not secure.