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

tempus_fugit

aj23 wrote: »

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.

Actually you are wrong, cheques are not legal tender therefore they can be refused as payment for goods and services. If you try this tactic often enough you will soon be in the wrong end of a court case.

takman

tempus_fugit wrote: »

Actually you are wrong, cheques are not legal tender therefore they can be refused as payment for goods and services. If you try this tactic often enough you will soon be in the wrong end of a court case.

Any method of payment can be refused for goods and services.

Legal Tender only relates to fines issued by a court and they cannot refuse payment by legal tender.

takman

aj23 wrote: »

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.

But if i get hold of your Chequebook then i can write myself a Cheque and take your money. There was also a case of someone posting on here recently who wrote a Cheque for £15 and £1500 was debited from their account because it was mistyped and they had trouble getting the money back.

No payment method is 100% secure. But Cheques are by far one of the most inconvenient methods of payment. You have to write it out and then actually find some way of getting it to the person your paying. If you receive a Cheque you have to waste time going to your local branch to pay it in.

You might aswell just go online and send it by bank transfer which only takes a few minutes and arrives to the persons account immediately. They they don't have to have the inconvenience of paying it in.

Hedgehog99

I like to use cheques between friends. I don't use any online banking or apps, so I would be charged a ridiculous fee if I wnted to do any sort of transfer payment.

If I owe a friend money, it's usually less than £15 anyway and I pay cash, but if I owe a friend for a theatre ticket for example, and it's too much money for them to wait until we meet at the event, I'll post them a cheque.

I know a cheque shows your account number etc, but it still seems more secure than hackable online financial exchanges. For smaller amounts where I'm likely to have, or can plan ahead to have, the cash, I prefer to do that. Don't want to have to keep giving my account details or being responsible for the security of other people's details.

takman

Hedgehog99 wrote: »

I like to use cheques between friends. I don't use any online banking or apps, so I would be charged a ridiculous fee if I wnted to do any sort of transfer payment.

You could just ring up your bank and transfer the money into their account using telephone banking and they certainly won't charge you a fee. You can also go into your branch (if that's how you currently manage your accounts) and ask them to transfer the money to your friends account and they also won't charge any kind of fee.
So there really is no need to use Cheques even if you don't use online banking.

Also there is no need to be concerned about the security of online banking if that's the only reason stopping you using it. If your account was ever "hacked" then you wouldn't loose any money because the bank take the loss. The only time anyone looses money due to online banking is if they fall for a scam and transfer the money themselves. Which in your case would be the same as you writing a Cheque to someone after falling for a scam and not realising until they cashed it and were long gone.

aj23_2

takman wrote: »

You could just ring up your bank and transfer the money into their account using telephone banking and they certainly won't charge you a fee. You can also go into your branch (if that's how you currently manage your accounts) and ask them to transfer the money to your friends account and they also won't charge any kind of fee.
So there really is no need to use Cheques even if you don't use online banking.

Also there is no need to be concerned about the security of online banking if that's the only reason stopping you using it. If your account was ever "hacked" then you wouldn't loose any money because the bank take the loss. The only time anyone looses money due to online banking is if they fall for a scam and transfer the money themselves. Which in your case would be the same as you writing a Cheque to someone after falling for a scam and not realising until they cashed it and were long gone.

But cheque fraud is lower than any other payment method. You can cancel a cheque before it clears. If you use online, telephone, card etc, the money goes straight away. I don't think people tend to scam with cheques anymore because of the fact that it can be cancelled.

aj23_2

Hedgehog99 wrote: »

I like to use cheques between friends. I don't use any online banking or apps, so I would be charged a ridiculous fee if I wnted to do any sort of transfer payment.

If I owe a friend money, it's usually less than £15 anyway and I pay cash, but if I owe a friend for a theatre ticket for example, and it's too much money for them to wait until we meet at the event, I'll post them a cheque.

I know a cheque shows your account number etc, but it still seems more secure than hackable online financial exchanges. For smaller amounts where I'm likely to have, or can plan ahead to have, the cash, I prefer to do that. Don't want to have to keep giving my account details or being responsible for the security of other people's details.

I agree with everything you said. Cheques are useful and a good, safe way to pay people. They do show account numbers, but they don't show the necessary info to make payments with, like the long card number, expiry and CVV. The account number present would mean that someone could pay you money, but I doubt a stranger would do that lol

aj23_2

takman wrote: »

But if i get hold of your Chequebook then i can write myself a Cheque and take your money. There was also a case of someone posting on here recently who wrote a Cheque for £15 and £1500 was debited from their account because it was mistyped and they had trouble getting the money back.

No payment method is 100% secure. But Cheques are by far one of the most inconvenient methods of payment. You have to write it out and then actually find some way of getting it to the person your paying. If you receive a Cheque you have to waste time going to your local branch to pay it in.

You might aswell just go online and send it by bank transfer which only takes a few minutes and arrives to the persons account immediately. They they don't have to have the inconvenience of paying it in.

But how would you get hold of my chequebook? You wouldn't be able to. If the clearing centre makes a mistake, they would have scanned images of the cheque so it could be proved that the cheque holder was not responsible. And to be honest, that's never happened to me nor have I ever heard of it happening. It's very rare as you write the amount out in words as well as numbers. Cheques are safer than contactless, online banking, and even cash to some extent (fake notes and coins, I've even had foreign change given to me).

I think you're unnecessarily making cheques sound more inconvenient that what they really are. A credit card bill comes in, or electricity bill, or you pay a friend for a theatre ticket for example, you know the credit card clearing address, the utility provider address and presumably your friends name and address. Nothing inconvenient there. When I receive one, I bank it when I go into town every week to do other things as well, including other banking needs. Nothing inconvenient with this either. A lot of banks/BS's you can post cheques to them to deposit too. And at the Post Office.

Going online I'd A) Have to register or be registered. I'd need that person to either write down or text/email me their bank details, which I certainly would never do because it could get lost or sent to the wrong person/intercepted. C) You could press the wrong number and send them the wrong amount, or enter a digit wrong in the sort code or account number and send it to a complete stranger. This is why cheques are safer. Cheques are the most convenient way for me to make payments, and I keep track of it. I can write a cheque (and post it) quicker than it would take me to make a BACS payment. What if the internet is down? Or their website isn't working? Happens often.

I think you'll find most people will be able to deposit cheques easily. Banks always have queues of people. If you don't like it or use it, that's fine. But other people do like it and use, and shouldn't be told it's inconvenient, not useful or annoying.

aj23_2

takman wrote: »

You could just ring up your bank and transfer the money into their account using telephone banking and they certainly won't charge you a fee. You can also go into your branch (if that's how you currently manage your accounts) and ask them to transfer the money to your friends account and they also won't charge any kind of fee.
So there really is no need to use Cheques even if you don't use online banking.

Also there is no need to be concerned about the security of online banking if that's the only reason stopping you using it. If your account was ever "hacked" then you wouldn't loose any money because the bank take the loss. The only time anyone looses money due to online banking is if they fall for a scam and transfer the money themselves. Which in your case would be the same as you writing a Cheque to someone after falling for a scam and not realising until they cashed it and were long gone.

You said to me cheques are inconvenient as the recipient has to go to the bank to bank it, yet you're telling this guy that he can go to the bank to make a transfer?! Quicker to write a cheque than go into the bank to make a transfer. Cheques don't cost the customer any money either. Again, if he/she likes using cheques, let him\her use them. It has no impact on you if you don't use them personally, so what's the problem? I don't like Contactless or use it (never have, opted out of it) but if others want to use it, no skin of my nose.

takman

aj23 wrote: »

But how would you get hold of my chequebook? You wouldn't be able to. If the clearing centre makes a mistake, they would have scanned images of the cheque so it could be proved that the cheque holder was not responsible. And to be honest, that's never happened to me nor have I ever heard of it happening. It's very rare as you write the amount out in words as well as numbers. Cheques are safer than contactless, online banking, and even cash to some extent (fake notes and coins, I've even had foreign change given to me).

To use your Chequebook someone needs to get hold of it, to use contactless on my card someone also needs to get hold of it so there is little difference in that respect.

Contactless fraud is almost irrelevant because if it does happen the bank refund immediately without question. Also it's not as common as you think i don't know anyone who it has happened too.

aj23 wrote: »

I think you're unnecessarily making cheques sound more inconvenient that what they really are. A credit card bill comes in, or electricity bill, or you pay a friend for a theatre ticket for example, you know the credit card clearing address, the utility provider address and presumably your friends name and address. Nothing inconvenient there. When I receive one, I bank it when I go into town every week to do other things as well, including other banking needs. Nothing inconvenient with this either. A lot of banks/BS's you can post cheques to them to deposit too. And at the Post Office.

For you they may not be inconvenient, but for me they are because i do almost everything online so i very rarely go near a bank. I much prefer to spend my free time doing something more productive and/or enjoyable.

aj23 wrote: »

Going online I'd A) Have to register or be registered. I'd need that person to either write down or text/email me their bank details, which I certainly would never do because it could get lost or sent to the wrong person/intercepted. C) You could press the wrong number and send them the wrong amount, or enter a digit wrong in the sort code or account number and send it to a complete stranger. This is why cheques are safer. Cheques are the most convenient way for me to make payments, and I keep track of it. I can write a cheque (and post it) quicker than it would take me to make a BACS payment. What if the internet is down? Or their website isn't working? Happens often.

I think you'll find most people will be able to deposit cheques easily. Banks always have queues of people. If you don't like it or use it, that's fine. But other people do like it and use, and shouldn't be told it's inconvenient, not useful or annoying.

All my friends and family send payments to each other on a regular basis using online banking and no-one has ever sent the payment to a wrong account. You simply double check the details the first time you send the money and then they are saved. Then any future payments take a few seconds, can be done on your mobile when your out and usually arrive immediately.

Also i don't see the issue with sending people your bank details. They are written on every cheque and most bank card and can only be used to pay money into the account easily.

aj23 wrote: »

You said to me cheques are inconvenient as the recipient has to go to the bank to bank it, yet you're telling this guy that he can go to the bank to make a transfer?! Quicker to write a cheque than go into the bank to make a transfer. Cheques don't cost the customer any money either. Again, if he/she likes using cheques, let him\her use them. It has no impact on you if you don't use them personally, so what's the problem? I don't like Contactless or use it (never have, opted out of it) but if others want to use it, no skin of my nose.

In that persons case if they are happy to travel to the bank then making a transfer in the bank makes it easier for the recipient to receive the money. Plus i thought i would mention it because they were under the mistaken impression that bank transfer would cost them money.

But....

If everyone agreed that Cheques were a good payment method and were not inconvenient like you then they wouldn't be making changes to the system. If everyone thought like you then they wouldn't be introducing systems to allow you to pay them in with a picture and to allow them to clear the next working day.

Once these changes are implemented Cheques will be far less inconvenient and i actually won't mind receiving the odd Cheque if i don't have to go into a branch to pay it in.