Why do some employers still pay by cheque?

veryangryman

In alot of low to medium paid industries, im still seeing employers give their wages be paid by cheque. I dont get the logic. Surely the admin cost in more than paying into bank account on payday.

In the case of one collegae, here is what needs to be done most paydays.

1. As payday is rarely on his shift, he must take a cab to the office to collect the cheque.

2. He then goes to the bank who issues the cheque to cash it in(in actual cash). As automation is the done thing there he queues for half hour to get a teller to deal with

3.Then does a quick lodge in his own bank with the cash as otherwise step 2 would take 5 days.


4. Cab home


Its likely a very common story but ends up costing 20 quid and alot of personal time to collect wages as of 2018.

Why is this in after hours you ponder? Well... from a philospophical point of view this seems like we are dragging people down who are working hard and it seems counterproductive.

So to summarise... why dont all employers pay into accounts? Cheques just seem so inefficient for all concerned.

Donald Trump

Who the fuck has a regular type of job and employer that pays by cheque?

seamus

This must be the exception rather than the rule at this stage. It costs money to hand out cheques.

I can only imagine the reason it's still going on is because this is the way it's always been done and the company and/or payroll person can't be bothered changing their process.

Fighting Tao

Why not ask your employer?

kneemos

Why can't the bank transfer to his account?

Effects

kneemos wrote: »

Why can't the bank transfer to his account?

.

veryangryman wrote: »

3.Then does a quick lodge in his own bank with the cash as otherwise step 2 would take 5 days.

He really needs to budget better, if he needs to collect his wages on the date is paid.
Also, a cab there & back?

kneemos

Effects wrote: »

.

Only takes five days when lodged in a different bank.
They're handing him cash,maybe it's possible to do a transfer?

Zaph

It's in the employer's interest to pay by cheque, particularly if they're a small operation. If the employee has to go and cash a cheque, they may not be able to do so for a day or two, meaning the money stays in the employer's account that little bit longer. Even if they do cash it straight away, the cheque still has to clear, so again the money remains in the employer's account for a little longer. If they paid by bank transfer the money comes out of their account straight away. However it is a ridiculous way of doing business in this day and age.

Avatar MIA

Don't fully agree with the above. A bank won't cash a third party check. Would be sure the OP is cashing in a bank that knows the drawer has the funds (I.e. the same bank) and the cheque will hit their account at the time of giving out the cash.

And most employees will make it a priority to get the cheque paid.

Strangely, though rare, I've come across employees that wanted to be paid by cheque, anecdotally so the wife wouldn't know what he earned.

And, of course, in the past a friendly publican would only be too happy to cash.

But, re the OP, I imagine it's because the payroll person is set in their ways, can't do file payments, and think it's easier to write out a cheque. Painful.

Ineedaname

Avatar MIA wrote: »

But, re the OP, I imagine it's because the payroll person is set in their ways, can't do file payments, and think it's easier to write out a cheque. Painful.

Used to work in a place that paid by cheque but tried to make the switch. To say they made a complete balls of it would be an understatement.

For nearly a month it was basically a lottery whether you got paid on time or not. Ended up going back to cheques and they were still that way when I left it.

You just can't change some people.

Purple Mountain

Show me a bank that hands out cash for a cheque.
Their process is usually to lodge it.
I worked in an sme that paid via cheques. It was the bain of my life.
I actually had to switch banks because of it because the bank I was with wasn't in my local town so had to swop to one that was.
Get handed the cheque on Friday evening. Get to the bank. Quicklodge. Type in my own description for traceability purposes. Then wait up to 5 days to clear.