Cheques, a thing of the past?

naughtysmurf

Sorry if this has been asked before, had a quick look but couldn't see anything.

Are banks over the coming few years going to phase out cheques completely?

homer911

They are going to try to.

I work for a non-clearing house bank and we have been told by our clearing bank that they are upping the costs for processing cheques by as much as 50%. These will get passed on to the customer, who they (no doubt) hope will decide its too expensive to keep using..

aw

The plan is to phase them out.

http://www.independent.ie/business/personal-finance/latest-news/cheques-to-be-phased-out-in-bid-to-modernise-payments-2031406.html

unclebill98

Uk going first. Ireland will follow. Out dated practice.

Rebel1977

Will everything be electronic then ? I hope so, cheques defo thing of the past need to move forward

broker2008

I wonder how older people are going to pay for certain services that have been traditionally paid by cheque. There are loads of services I pay for myself by cheque. Not everyone has access to computers.

dotsman

broker2008 wrote: »

There are loads of services I pay for myself by cheque.

Really? The last check I wrote was in 2003, and that's only because my then letting agency insisted (I would much rather have paid electronically)

broker2008 wrote: »

Not everyone has access to computers

At this stage, most people do. And for those that don't - there's phone banking. Surely everyone has access to a telephone?

Ultimately, between cash, online banking, phone banking and debit/credit cards, I can't possibly see any reason why a cheque would ever be necessary any more?

broker2008

Had a quick look at the type of cheques that I've written over the last 3 years - 25 cheques in 3 years. Cheques vary from payments for the kids for some of their activities, physio and consultant visits to cheques for subs for residents association, one off pension payments to insurance companies to charitable donations. Most can be paid by alternative means with most preferring payment by cash :rolleyes:

unclebill98

This topic came up recently.

Club subs was a big thing that is still done by chq. Can be done via standing order. Easy enough to sort out.

+1 dots man post.

Jim2007

broker2008 wrote: »

I wonder how older people are going to pay for certain services that have been traditionally paid by cheque. There are loads of services I pay for myself by cheque. Not everyone has access to computers.

I expect that the ATMs will be adapted to make online payments as they now are in most of mainland Europe, so there will be no need to have access to a computer, it will just be another option on the ATM menu.

You can also expect that the Maestro cards will become a common way of paying at most shops. It is very unusual to find shops here in Switzerland that can't accept payment via the card.

Here in Switzerland the newer ATMS, now called Multimats, can even scan an invoice or letter and pick up the IBAN number and account detail and present them to you for confirmation before making the payment.

Oh and you can also add credit to your 'pay as you go' mobile phone.

Jim.

unclebill98

I'd say bill payment via an ATM witll take a while to catch on. Not sure I'd be comfy doing a transaction like that at an ATM, just the time to do it.

Q behind you. Sure people get annoyed when someone decides to go through there 3 ATM cards let alone spend 5 mins paying a bill.

dotsman

broker2008 wrote: »

payments for the kids for some of their activities,

Ok, don't have kids myself, so not 100% sure what kind of activities you are talking about, but if it's things like music/art lessons, I'd imagine eft/standing order/cash would be perfect (depending on how much and how regular the payments are).

broker2008 wrote: »

physio and consultant visits

debit/credit cards are the easiest here.

broker2008 wrote: »

to cheques for subs for residents association,

Sounds like eft/standing order is far more ideal here.

broker2008 wrote: »

one off pension payments to insurance companies

eft is the clear winner here.

broker2008 wrote: »

to charitable donations.

again, eft is the clear winner.

Some businesses/organisations, today, still insist on doing things the awkward, backwards way. They will very quickly learn to adapt or collapse.

KillerShamrock

unclebill98 wrote: »

I'd say bill payment via an ATM witll take a while to catch on. Not sure I'd be comfy doing a transaction like that at an ATM, just the time to do it.

Q behind you. Sure people get annoyed when someone decides to go through there 3 ATM cards let alone spend 5 mins paying a bill.

A lot of people do pay their bills by atm bank of Ireland have offered this service for years now.its quick and easy as doing it online or by phone.
Cheques are slow dated, cost a hell of a lot of money to copy store and so on and a thing of the past. the sooner they are gone the better!

With the exception of ourselves, England the US and I think France cheques are used hardly anywhere so it is time we well moved with the times

Jim2007

unclebill98 wrote: »

I'd say bill payment via an ATM witll take a while to catch on. Not sure I'd be comfy doing a transaction like that at an ATM, just the time to do it.

Q behind you. Sure people get annoyed when someone decides to go through there 3 ATM cards let alone spend 5 mins paying a bill.

You just end up with more ATMs! I live in a market town of about 15,000 people and my local bank has an array of about 10 or 12 ATMs. When I go to the bank in Zurich they have a special room with about 50 ATMs and you just queue up like in the old days.

Jim (Switzerland)

unclebill98

That's mad. I suppose of time goes on the ATM network will evolve.

Banks will not invest in them widespread till they start making more money.

I for one can't not wait to see the end of chqs.

Jim2007

unclebill98 wrote: »

That's mad. I suppose of time goes on the ATM network will evolve.

In the current climate it could actually happen sooner rather than later. First of all the banks already have the buildings and secondly a machine is a lot cheaper that a bank teller! So eliminate the bank teller and you go space for the machine to start with. Then because you're using ATMs for most activates, you can also simplify the back office process and make even more savings.

Given the pressure on banks to cut costs, it is an attractive option right now.

Jim.

unclebill98

Banks are trying to get people use anything other than the teller for basic banking transaction as it is.

As for sooner, ATM upgrades will run to 100's of millions for a bank. More to it than buying a shiny new ATM.

Jim2007

unclebill98 wrote: »

Banks are trying to get people use anything other than the teller for basic banking transaction as it is.

As for sooner, ATM upgrades will run to 100's of millions for a bank. More to it than buying a shiny new ATM.

The last quote I heard was about €3,000 per machine...

Jim.

jay gatsby

I know this is not the most clinical reason but a cheque can be useful in certain cases eg.

I always pay things like my car insurance by cheque and have often talked the rep down in the branch by a few bob. This is done with simple banter face to face because you still have to write the cheque out to them. you don't manage stuff like this by talking to a rep in a call centre or by organising an EFT.

I also deal with a lot of small companies and sole traders and there is a personal touch of someone coming to pay their bill face to face that I would miss if it all went electronic. These would be guys that would never get as far as having card machines. And you can't go carrying around reasonably large sums of cash all the time.

Also for very occasional one off payments like someone already described about the kids in school the cheque is useful. It avoids the hassle of firing up the computer and getting all the details for a transfer and also you don't have the worry of giving the child cash to carry around.

unclebill98

Jim2007 wrote: »

The last quote I heard was about €3,000 per machine...

Jim.

Probably, but.

Risk would have to pass it, IT dept would need upgrade with soft ware and skills, staff would need training, training guide needs established, machines have to be installed, some buildings would require retro fitting, new cassettes would need to be enhanced, delivery etc etc the list goes on.....

Like I said it will be years before an entire banks network would be done. They'd normally start with larger metro branches.