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  • FIRST POST
    • stclair
    • By stclair 26th Dec 13, 9:20 AM
    • 6,521Posts
    • 3,459Thanks
    stclair
    Cheques To Be Paid In Via Smartphone
    • #1
    • 26th Dec 13, 9:20 AM
    Cheques To Be Paid In Via Smartphone 26th Dec 13 at 9:20 AM
    As the title suggests:

    http://www.bbc.co.uk/news/business-25495962
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
Page 1
    • Buzby
    • By Buzby 26th Dec 13, 9:47 AM
    • 8,201 Posts
    • 3,011 Thanks
    Buzby
    • #2
    • 26th Dec 13, 9:47 AM
    • #2
    • 26th Dec 13, 9:47 AM
    Just playing catchup with US banks, who have offered this for the last 8 years. It was suppressed here as the banks hoped to kill off cheques last year - now that has been abandoned, they're reluctantly being forced to do it.
    • EarthBoy
    • By EarthBoy 26th Dec 13, 11:38 AM
    • 2,128 Posts
    • 1,463 Thanks
    EarthBoy
    • #3
    • 26th Dec 13, 11:38 AM
    • #3
    • 26th Dec 13, 11:38 AM
    I think the US still uses cheques a lot more than we do, so they probably have need for this system. Here, it's unlikely to breathe new life into a dying method of payment.
    • JuicyJesus
    • By JuicyJesus 26th Dec 13, 1:38 PM
    • 3,481 Posts
    • 3,941 Thanks
    JuicyJesus
    • #4
    • 26th Dec 13, 1:38 PM
    • #4
    • 26th Dec 13, 1:38 PM
    Two words: fraud magnet.
    urs sinserly,
    ~~joosy jeezus~~
    • Archi Bald
    • By Archi Bald 26th Dec 13, 2:16 PM
    • 9,376 Posts
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    Archi Bald
    • #5
    • 26th Dec 13, 2:16 PM
    • #5
    • 26th Dec 13, 2:16 PM
    It's obviously an improvement if the clearance is 2 days rather than 6, but why should Business owners be any more interested in cheques than they are now? With cards or faster payment, they can get their money the same day, and it most probably costs them less in charges. So anything but cheque is good for cashflow, and good for revenue. Add to that that there is no longer any guarantee that the cheque will actually be paid, and I doubt that this guarantee will be re-introduced. So what is the attraction for businesses?

    Looking at it from consumer point of view: I reckon that a lot of those who still like to use cheques probably don't even have, or want, a smartphone, let alone a banking app on their smartphone.

    I agree with Earthboy, it's a dying method of payment.

    Still, it sounds like an electioneering slogan "we reduced the cheque processing time from 6 to 2 days", alongside "we introduced 7 day bank switching".
    • Goldiegirl
    • By Goldiegirl 26th Dec 13, 5:07 PM
    • 8,472 Posts
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    Goldiegirl
    • #6
    • 26th Dec 13, 5:07 PM
    • #6
    • 26th Dec 13, 5:07 PM
    Two words: fraud magnet.
    Originally posted by JuicyJesus
    I quite agree.

    The little bank that I work for checks most cheques under ultra violet light, to look for fraudulent alterations - not to mention just inspecting the cheque to make sure it's genuine, for example looking for perforations on the left hand edge of the cheque.

    I don't see how that could be done with a scanned image.
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
    • pmduk
    • By pmduk 26th Dec 13, 5:50 PM
    • 10,130 Posts
    • 7,753 Thanks
    pmduk
    • #7
    • 26th Dec 13, 5:50 PM
    • #7
    • 26th Dec 13, 5:50 PM
    Looking at it from consumer point of view: I reckon that a lot of those who still like to use cheques probably don't even have, or want, a smartphone, let alone a banking app on their smartphone.

    I agree with Earthboy, it's a dying method of payment.
    Originally posted by Archi Bald
    Whilst that was my first thought, the people choosing to write cheques are frequently not the people receiving them who are those most likely to benefit from the change.

    It still isn't likely to increase the use of this dying method of payment.
  • Macca83
    • #8
    • 26th Dec 13, 5:58 PM
    • #8
    • 26th Dec 13, 5:58 PM
    If a faster payment can arrive almost instantly, I don't understand why the clearance time for cheques can't be quicker. To me that sounds like a far more sensible idea than faffing about with your smart phone and taking pictures. How can a smart phone detect if a cheque has been washed or if the quality is poor?
    • KxMx
    • By KxMx 26th Dec 13, 6:22 PM
    • 7,581 Posts
    • 11,083 Thanks
    KxMx
    • #9
    • 26th Dec 13, 6:22 PM
    • #9
    • 26th Dec 13, 6:22 PM
    While accepting that the US uses a higher volume of cheques; I think some of the nay-sayers here need to consider the US has had this system for 8 years, and i'm sure some of the issues people have flagged as cons to the system are dealt with/ solutions found.
    • chambta
    • By chambta 26th Dec 13, 6:26 PM
    • 2,739 Posts
    • 1,011 Thanks
    chambta
    Aren't banks designing apps that allow the likes of 'Pay Your Contacts' that work in a similar way? Seems an odd development to me.
    • stclair
    • By stclair 26th Dec 13, 6:44 PM
    • 6,521 Posts
    • 3,459 Thanks
    stclair
    Aren't banks designing apps that allow the likes of 'Pay Your Contacts' that work in a similar way? Seems an odd development to me.
    Originally posted by chambta
    Yeah it appears so:

    http://www.paymentscouncil.org.uk/current_projects/mobile_payments/
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
    • spenderdave
    • By spenderdave 26th Dec 13, 6:47 PM
    • 473 Posts
    • 278 Thanks
    spenderdave
    ALL cheques are photoscanned by the banks anyway for archive purposes as part of the cheque clearing process. If banks claim they can reduce the clearance time to 2 days by processing an image from a smartphone, why on earth can't they do the same from the scanned image they themselves make.....?
    I agree, it will be a fraud magnet. And even though I don't have a smartphone I very rarely receive cheques either.
  • innovate
    Seems an odd development to me.
    Originally posted by chambta
    It's probably the next best alternative in terms of costs for the banks, next best to getting rid of cheques altogether, which they can only do once the last significant number of holders of cheque books have passed away. This will inevitably happen, probably within the next decade (including in the US).

    The Smartphone scanning is most likely a huge cost saver, allowing the banks to scale down the number of people needed to handle cheques. It's not being done to revive cheques as a payment method.
  • innovate
    If banks claim they can reduce the clearance time to 2 days by processing an image from a smartphone, why on earth can't they do the same from the scanned image they themselves make.....?
    .
    Originally posted by spenderdave
    The existing system doesn't exchange the images, they still exchange paper. So a huge change in processes, and supporting IT systems, would be needed. It is almost certainly cheaper to buy a reasonably tried and tested system from the US. And in the process, completely eliminate the people and equipment cost associated with the handling of physical pieces of paper and the scanning - all being done by the customers. Must be a gigantic cost saver.

    As to the Smartphone scanning to offer new opportunities for fraud: I am certain people will try. But as someone already commented - this isn't an untried system and therefore it is streets ahead of your would-be fraudster. The nice thing is that at least one party to the fraud (and most likely the main one) is inextricably linked to a name, address and bank account, so the fraud squad will have an easy job catching the smart alecs.

    Cue the MSE threads headed something like: Cheque not cashed, bank account closed without warning! HELP!
    Last edited by innovate; 26-12-2013 at 7:32 PM.
    • ic
    • By ic 26th Dec 13, 7:26 PM
    • 2,652 Posts
    • 1,350 Thanks
    ic
    Looking at it from consumer point of view: I reckon that a lot of those who still like to use cheques probably don't even have, or want, a smartphone, let alone a banking app on their smartphone.
    Originally posted by Archi Bald
    The people scanning the cheques will be those reluctantly receiving them - not the people writing them. This a is a win-win - old folks can still write cheques, and people who get paid with them can get their money faster.
    * my posts are made in good faith and only represent my own opinion, experience or understanding of a situation.
    • Gromitt
    • By Gromitt 26th Dec 13, 8:07 PM
    • 4,981 Posts
    • 2,384 Thanks
    Gromitt
    With cards or faster payment, they can get their money the same day
    Originally posted by Archi Bald
    Depends on the payment provider. Some will only pay you once per month for card payments they have processed, and if you get a fraudulent payment, they can withhold up to 4 weeks of payments whilst they investigate.
    • Archi Bald
    • By Archi Bald 26th Dec 13, 9:03 PM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    The people scanning the cheques will be those reluctantly receiving them - not the people writing them. This a is a win-win - old folks can still write cheques, and people who get paid with them can get their money faster.
    Originally posted by ic
    Point taken, it's predominantly older people that want to write the cheques, rather than receive them.

    Though not all older ones like cheques - - I am one of the older generation but haven't written a cheque in about 7 years now. Would have a job to even find any cheque books now but I think they are somewhere at the back of the safe.
    • Wilkins
    • By Wilkins 26th Dec 13, 9:14 PM
    • 442 Posts
    • 335 Thanks
    Wilkins
    Point taken, it's predominantly older people that want to write the cheques, rather than receive them.

    Though not all older ones like cheques - - I am one of the older generation but haven't written a cheque in about 7 years now. Would have a job to even find any cheque books now but I think they are somewhere at the back of the safe.
    Originally posted by Archi Bald
    I don't much like cheques either but I still find instances where I prefer it. For example, starting a savings account where only one deposit is allowed --I'm reluctant to do a big electronic transfer without a small tester in case I screw up.
    • Archi Bald
    • By Archi Bald 26th Dec 13, 9:17 PM
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    Archi Bald
    How many of such accounts do exist? In any case, though, you have to figure out another way because cheques won't be around forever.
    • Gromitt
    • By Gromitt 26th Dec 13, 10:45 PM
    • 4,981 Posts
    • 2,384 Thanks
    Gromitt
    How many of such accounts do exist? In any case, though, you have to figure out another way because cheques won't be around forever.
    Originally posted by Archi Bald
    They'll probably do the same as Nationwide did for their MySave account once cheques are abandoned forever - tell you to put your initial investment into your current account (which you need to for the cheque anyway) and they'll DD the funds out.
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