Revenue Cheque - Why takes 5 days to clear?

vicwatson

I'm sure this might be an age old question but recently got a refund of tax (lucky me) wasn't for very much (unlucky me) but lodged the cheque to PTSB and although it shows up on my account as a credit it still cannot be used as it will take 5 days to "clear" surely the fact that it's a revenue cheque they can clear and have my funds available immediately??? In this day and age it's quite ridiculous that it should take that long to "Clear".

(I have now signed up with Revenue for direct funds transfer to my bank account so no more cheques to me when they refund me the next millions !!!!)

phormium

Bank computer sees cheque lodgment, it can't distinguish who the cheque is from and just applies normal clearing times to cheques regardless of their origin. The only way to have it instantly cleared would have been if cashier cashed it and input as cash which they are unlikely to do or bank transfer as you already know.

dotsman

vicwatson wrote: »

In this day and age it's quite ridiculous that it should take that long to "Clear" people still use cheques.

FYP.

Don't blame cheques. Cheques (and related clearing system) are from the middle ages (literally). They are a paper based transaction that requires to be passed through numerous hands before they are cleared. They work they way they were originally designed to work.

It's like blaming the telegraphs for its limitations. It did exactly what it was intended to do and was brilliant for it's time. However, people simply moved on to telephones (and now email, IM, SMS etc as well) when they became available as they offered far superior benefits. Far, far, far superior methods of payment exist, yet some people still prefer the extremely outdated method that is the cheque.

P.S. I though all government agencies had stopped using cheques since E-Day. When did revenue send this to you?

vicwatson wrote: »

(I have now signed up with Revenue for direct funds transfer to my bank account so no more cheques to me when they refund me the next millions !!!!)

Welcome to the 21st century.

phormium

Oddly enough the last two returns I submitted to Revenue for a family member had bank details for transfer of refund, in both cases they sent out a cheque, don't know why!

amen

5 days is still a long time. Used to be 3.

Day 1 cheque arrives in bank (PTSB) and credited to your account(cant draw funds yet).
Goes to PTSB clearing house that night and sorted to go to Revenues bank.
Day 2 Arrives in Revenues bank. Bank processes check determines no issue with funds. If there is an issue cheque returned to PTSB.

Day 3 funds now available in PTSB or they have a returned cheque and no funds available.

Not sure where the extra 2 days is coming from.

If I was in the USA I can take a picture of a cheque with a smart phone and have it lodged directly to my account. I did this with a AIB cheque and using the smart phone I could use the funds 1 day later. At the same time I lodged an AIB cheque and it took 5 days before I could use the funds.

We have an antiquated system.

vicwatson

dotsman wrote: »

FYP.

Don't blame cheques. Cheques (and related clearing system) are from the middle ages (literally). They are a paper based transaction that requires to be passed through numerous hands before they are cleared. They work they way they were originally designed to work.

It's like blaming the telegraphs for its limitations. It did exactly what it was intended to do and was brilliant for it's time. However, people simply moved on to telephones (and now email, IM, SMS etc as well) when they became available as they offered far superior benefits. Far, far, far superior methods of payment exist, yet some people still prefer the extremely outdated method that is the cheque.

P.S. I though all government agencies had stopped using cheques since E-Day. When did revenue send this to you?




Welcome to the 21st century.

Wow, you're a mine of information

Revenue sent it last week.

And NO they haven't moved yet, it has been put back as they "don't have their systems ready yet" (along with other Government bodies such as The Land Registry)

SBarrett

Did you give them your bank account details? I've been able to have refunds paid directly to my bank account for a few years now.

Toots

vicwatson wrote: »

I'm sure this might be an age old question but recently got a refund of tax (lucky me) wasn't for very much (unlucky me) but lodged the cheque to PTSB and although it shows up on my account as a credit it still cannot be used as it will take 5 days to "clear" surely the fact that it's a revenue cheque they can clear and have my funds available immediately??? In this day and age it's quite ridiculous that it should take that long to "Clear".

(I have now signed up with Revenue for direct funds transfer to my bank account so no more cheques to me when they refund me the next millions !!!!)

I wrote a post before on the cheque clearing cycle the info is here:


In the case where a cheque is lodged in the same bank as it is drawn on (BOI cheque lodged to BOI account) the cycle goes like this:

Day 1: Cheque is lodged by payee. Drawer's account is debited.
Day 2: Cheque has been debited from drawers account, but can still be returned unpaid if 1.The drawer requests the cheque be stopped
(this can be done the day after the cheque has been debited) or 2.the cheque is out of date, not signed, post dated, incomplete.
This can be discovered when the cheque goes through clearing on day 2.
Day 3: Cheque is cleared in payee's account.



In the case of the cheque being drawn on another bank ie: AIB cheque lodged to BOI account, it goes:

Day 1: Cheque is lodged by payee. Debit is sent through clearing to other bank.
Day 2: Debit reaches other bank, and is sent through to drawer account.
Day 3: Providing there are sufficient funds in the drawer's account, the cheque is debited, but can still be returned unpaid if 1.The drawer requests the cheque be stopped, or 2.the cheque is out of date, not signed, post dated, incomplete.
Day 4: Cheque has been debited from drawers account, but can still be returned unpaid if 1.The drawer requests the cheque be stopped (this can be done the day after the cheque has been debited) or 2.the cheque is out of date, not signed, post dated, incomplete.This can be discovered when the cheque goes through clearing on day 4.
Day 5: Funds are cleared in payee's account.

This is the case regardless of who the cheque is from, because no cheque is guaranteed until it clears. The Revenue cheques are drawn on BOI, so it will take 5 days before the funds are cleared.

In some cases your bank will have your account set up in such a way that you will be able to access the funds straight away - usually if you've had the account a long time and it is kept in good standing - however even if you're able to do this, the cheque will still take 3-5 days to clear. It's almost as if the bank is giving you the money 'on tick' until the cheque has cleared.

You can ask your bank to see if they can make this option available to you. In this case if you draw the money before the cheque has cleared there will be a small interest charge at the end of the fee quarter for drawing uncleared effects.