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  • FIRST POST
    • MSE Guy
    • By MSE Guy 12th Jul 11, 3:30 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Cheques will NOT be axed after U-turn
    • #1
    • 12th Jul 11, 3:30 PM
    MSE News: Cheques will NOT be axed after U-turn 12th Jul 11 at 3:30 PM
    This is the discussion thread for the following MSE News Story:

    "The move, which ends the proposed abolition of cheques in 2018, has been met with joy by elderly charities ..."

Page 1
  • edd921
    • #2
    • 12th Jul 11, 3:48 PM
    Cheque Guarantee scheme
    • #2
    • 12th Jul 11, 3:48 PM
    The reason retailers have stopped accepting cheques surely is because they're not guaranteed anymore, since the Cheque Guarantee scheme folded on 30 June?
    • premierfella
    • By premierfella 12th Jul 11, 4:05 PM
    • 863 Posts
    • 475 Thanks
    premierfella
    • #3
    • 12th Jul 11, 4:05 PM
    • #3
    • 12th Jul 11, 4:05 PM
    So cheques saved because of the lobbying or.....

    cheques saved because an alternative to cheques was a prerequisite for their demise and the costs attached to setting up that alternative may have been higher than the cost of maintaining a cheque payment system, use of which is contracting naturally anyway?

    I think I know which of the above is more likely.
    • pmduk
    • By pmduk 12th Jul 11, 4:25 PM
    • 10,130 Posts
    • 7,753 Thanks
    pmduk
    • #4
    • 12th Jul 11, 4:25 PM
    • #4
    • 12th Jul 11, 4:25 PM
    I hope the people campaigning to save cheques are prepared to pay the higher costs involved with clearing them.
    • JuicyJesus
    • By JuicyJesus 12th Jul 11, 4:34 PM
    • 3,477 Posts
    • 3,935 Thanks
    JuicyJesus
    • #5
    • 12th Jul 11, 4:34 PM
    • #5
    • 12th Jul 11, 4:34 PM
    What a pity.

    They're fraud prone, slow and outmoded. They really need to die.
    urs sinserly,
    ~~joosy jeezus~~
    • Torry Quine
    • By Torry Quine 12th Jul 11, 4:34 PM
    • 17,252 Posts
    • 26,858 Thanks
    Torry Quine
    • #6
    • 12th Jul 11, 4:34 PM
    • #6
    • 12th Jul 11, 4:34 PM
    This is really good news. I don't use cheques very often but need them for paying local tradesmen. They are also useful for sending to people as a gift.
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
    • Consumerist
    • By Consumerist 12th Jul 11, 5:57 PM
    • 5,192 Posts
    • 2,599 Thanks
    Consumerist
    • #7
    • 12th Jul 11, 5:57 PM
    • #7
    • 12th Jul 11, 5:57 PM
    This decision just confirms, for me, that the financial industry is run by utter dipsticks who don't seem to have a brain cell between them and who prefer to lie and cheat rather than provide an honest service.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • verybigchris
    • By verybigchris 12th Jul 11, 7:51 PM
    • 494 Posts
    • 740 Thanks
    verybigchris
    • #8
    • 12th Jul 11, 7:51 PM
    • #8
    • 12th Jul 11, 7:51 PM
    In April, I transferred from one internet-only Cash ISA to another. You'd think the old provider would send the balance electronically to the new one, wouldn't you?

    Nope. Took three weeks for two major banks to send each other letters, then one posted a cheque, then the other waited for it to clear. And all the while we're being told that "banks want to get rid of cheques".
    • Paulgonnabedebtfree
    • By Paulgonnabedebtfree 12th Jul 11, 10:40 PM
    • 2,703 Posts
    • 28,940 Thanks
    Paulgonnabedebtfree
    • #9
    • 12th Jul 11, 10:40 PM
    • #9
    • 12th Jul 11, 10:40 PM
    Well I'm very pleased with this announcement. I rarely write cheques myself but I have a one man window cleaning business and plenty of my customers still pay by cheque. I have gradually been nudging them over to bank transfers and plenty have gone for it. However, many won't or can't do it. Some of my older customers wouldn't even know how to switch on a computer if they had one (although telephone banking could be used). I even have several situations where they struggle to remember me when I turn up due to the foggy thinking some people get as they age. These customers would probably even struggle with cheques but tend to be at home and pay by cash.
    I'm sure that cheques will end one day but it might not be until we have a whole generation that has lived in a more technological age.
    • pmduk
    • By pmduk 12th Jul 11, 10:50 PM
    • 10,130 Posts
    • 7,753 Thanks
    pmduk
    The reason retailers have stopped accepting cheques surely is because they're not guaranteed anymore, since the Cheque Guarantee scheme folded on 30 June?
    Originally posted by edd921
    Retailers stopped accepting cheques because of the higher levels of fraud associated with them, despite the cheque guarantee scheme. Most stopped well before the end of the cheque guarantee scheme.
  • mustrum_ridcully
    I hope the people campaigning to save cheques are prepared to pay the higher costs involved with clearing them.
    Originally posted by pmduk
    So what are these "higher costs", compared to debit/credit card and cash handling?
    "One thing that is different, and has changed here, is the self-absorption, not just greed. Everybody is in a hurry now and there is a 'the rules don't apply to me' sort of thing." - Bill Bryson
  • Valor
    What a pity.

    They're fraud prone, slow and outmoded. They really need to die.
    Originally posted by JuicyJesus
    Agree with this, it's a shame the industry didn't stick to it's guns.

    I can only hope that (as mentioned above) cheques attract much higher processing fees rather than having the costs (processing + fraud) covered by the rest of the industry.

    Val.
    Full Disclosure: I'm an Analyst that has previously worked in the B2C Financial Sector (A&L, Santander), I currently work in the B2B Energy Sector (Centrica).

    All views expressed are mine alone, and do not represent the opinions or polocies of any company I work for (or have worked for in the past).
    • premierfella
    • By premierfella 13th Jul 11, 11:19 AM
    • 863 Posts
    • 475 Thanks
    premierfella
    So what are these "higher costs", compared to debit/credit card and cash handling?
    Originally posted by mustrum_ridcully
    Probably a question best answered by the banks.

    A quick google came up with this:
    http://www.consumerchoices.co.uk/the-hidden-costs-of-paying-for-your-broadband.html
    which quoted figures apparently from the British Retail Consortium (I can't vouch for the accuracy of the article or the figures)

    Cheques: 53p
    Credit card: 35p
    Debit card: 8p
    Cash: 2p
  • Sterling
    For those people who no longer use or need cheques, what does it matter whether cheques are scrapped or not?

    For those people who still need cheques, this is a great victory for common sense.
  • rb10
    For those people who no longer use or need cheques, what does it matter whether cheques are scrapped or not?
    Originally posted by Sterling
    Because occasionally, some people will insist on paying me by cheque.

    I received a cheque the other day, from someone who could easily have paid me online. Now I have to make a special trip to the bank to pay it in.

    For those people who still need cheques, this is a great victory for common sense.
    Originally posted by Sterling
    If they'd stuck with their deadline of 2018, then by that time, I believe that no one would actually still need cheques.

    It's similar to digital TV. Just a short time ago, that didn't work in many areas of the country. But they set deadlines and are sticking to them. Now, in many areas, they've removed the outdated technology.

    Sometimes, people have to be pushed towards new technology in order for it to work effectively. They did that with TV, and so now digital works better than it did before the switchover.
  • Sterling
    I received a cheque the other day, from someone who could easily have paid me online. Now I have to make a special trip to the bank to pay it in.
    Originally posted by rh10
    So, in your world all cheque users in the land would have to suffer because you can’t be bothered to nip to the bank?
    • pinkfluffybabe
    • By pinkfluffybabe 13th Jul 11, 2:42 PM
    • 2,623 Posts
    • 8,495 Thanks
    pinkfluffybabe
    I think this is a good decision.

    I'm on a few local committees and its just not practical for us to operate without chequebooks. We need two signatories for each cheque for security reasons - how would we do that online?
    Not buying unnecessary toiletries 2019 33 UU, 20 GA / 146 13 IN
    Mortgage Free Wannabe 2019 No.64 £263.75/£1000
    Saving for Christmas 2019 No.13 £151/£365
    Penny a day 2019 No.8 £120.35/£667.95
    Virtual Sealed Pot Challenge 2019 No.12 £57.13/£150
  • rb10
    So, in your world all cheque users in the land would have to suffer because you can’t be bothered to nip to the bank?
    Originally posted by Sterling
    No, they wouldn't suffer at all. They'd just pay using telephone or internet banking. Easier for me as I don't have to make a trip to the bank. Easier for them as they don't have to get a cheque to me.

    I'm on a few local committees and its just not practical for us to operate without chequebooks. We need two signatories for each cheque for security reasons - how would we do that online?
    Originally posted by pinkfluffybabe
    Easy. CAF Bank. From their website:

    As an additional security measure, transactions carried out online require dual authorisation. So once a transaction has been initiated online, it requires another person authorised by your organisation to approve it before any money leaves your account.
    A million times easier than tracking down someone else to countersign your cheque.
  • IceQueen
    rb10, in the time you’ve spent posting on this thread, you could have gone to the bank. Stop being so selfish, there’s a lot of people out there who want to use cheques, including me.

    I was recently owed some money by a firm of solicitors who’d wrapped up my late mum’s estate. They offered to send me the money electronically to my bank but said that this would cost me £20. I asked for a cheque instead which cost me nothing. What would you have done?
    • tabby cats mum
    • By tabby cats mum 14th Jul 11, 6:37 AM
    • 223 Posts
    • 348 Thanks
    tabby cats mum
    I run a small charity lottery and I'm delighted cheques are staying as it would be really difficult to pay the winners. Cash is logistically impossible and people just do not like giving their bank details so paying direct into their bank accounts isn't an option either. Plus it means I can still get a cheque from my mum for my birthday!!
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