Cheques no longer accepted

[First class]

Just a warning that ATOC have approved the withdrawal of cheques as a method of payment and they will be completely rejected very soon, (I've heard from May 16 but not confirmed).

All stations should be getting posters/leaflets explaining.

Merseyrail has already posted this information around some of their stations.

No "exact" date though (yet).

Also, Translink will be refusing cheques from 30 June 2011.

Would also imagine Postal Orders will be removed and I think Warrants may be changing over to an "electronic card type thingy". However that is rumour.

 

[SS4]

About time! Cheques are an anachronism taking far too long to process in today's world

 

[Zoe]

About time! Cheques are an anachronism taking far too long to process in today's world

However they are still very useful for when they payment is not to a business.

 

[island]

There was always a requirement for a cheque guarantee card, and the cheque guarantee scheme is ending on the 30th of June anyway.

I wonder will TOCs still accept company cheques for the payment of season tickets.

 

[CarterUSM]

I cannot remember the last time I was offered a cheque for payment on train! I am interested in the warrant changes, and would like to know more.

 

[me123]

Cheques have all but disappeared from retail transactions. They're not very secure, and they're a pain to process, routinely taking over a week (compared to card payments, which are normally much quicker, and the instantaneous cash transaction). Supermarkets have all now stopped accepting cheques, aside from some business cheques (although, having worked in a supermarket for around two years, I've never seen one). I can't ever remember seeing someone offer a cheque for a train ticket; most people (myself included) would have assumed that they would be refused, given how rare they are. Even the most expensive season tickets can just as easily be paid for by card; indeed, you'd need a cheque-guarantee card (probably the same one) to use a cheque anyway!

As a whole, the withdrawal of cheques probably won't be missed. I've never had a cheque book, and probably will never have any need for one. I hate getting cheques, particularly small ones. I don't like standing in a bank queue to hand over a piece of paper to get five pounds or something. The biggest losers here, however, are the small businesses and tradesmen that rely on cheques. Sure, they tend to accept cash, but I don't think it's reasonable to expect a little old lady to hand over £20,000 in cash to a builder (for example). And it's not really fair to expect such small businesses to pay for chip & pin technology when they won't be using it that much.

 

[island]

Even the most expensive season tickets can just as easily be paid for by card; indeed, you'd need a cheque-guarantee card (probably the same one) to use a cheque anyway!

This isn't really relevant, because the highest cheque guarantee card limit was £250. Sometimes a cheque is necessary because the maximum daily purchase limit on a debit card mightn't be enough (several banks limit to a couple of thousand).

It's worth noting that cheques are not being phased out themselves until at least 2018.

 

[Nym]

As above, yes, cheques may well dissapear from the world of retail, especially with the removal of the guarentee card, but by no means does this mean that cheques can be withdrawn from existance. It's the only way I can think of to pay for things by post. I wouldn't gladly write down credit card details on a form to send off when I'd much rather post a cheque. And quite a lot of pepole aren't comfortable sending BACS or FPS details for electronic transfer. I have seen talk elsewhere of cheques being withdrawn entirely by 2018...
--- old post above --- --- new post below ---

This isn't really relevant, because the highest cheque guarantee card limit was £250. Sometimes a cheque is necessary because the maximum daily purchase limit on a debit card mightn't be enough (several banks limit to a couple of thousand).

It's worth noting that cheques are not being phased out themselves until at least 2018.

And the only guarentee card I had £250 on never came with a cheque book anyway...

Paying by cheque for tickets is a reasonable idea though, since some TOCs don't accept certain card networks, or types of card. Or when there is an EPOS failiure on the PDQ, although to be honest, who carries a cheque book nowerdays (asside from me)

 

[strange6]

As above, yes, cheques may well dissapear from the world of retail, especially with the removal of the guarentee card, but by no means does this mean that cheques can be withdrawn from existance. It's the only way I can think of to pay for things by post. I wouldn't gladly write down credit card details on a form to send off when I'd much rather post a cheque. And quite a lot of pepole aren't comfortable sending BACS or FPS details for electronic transfer. I have seen talk elsewhere of cheques being withdrawn entirely by 2018...

Direct Debits, Credit and debit cards for paying by post, and online payment for your credit card bill and most other things each month, makes the cheque all but redundant now. Good riddance to them and thank heavens for the internet!

 

[Greenback]

I did have difficulty in paying for some electrical work last year, as neither Mrs Greenback or myself have cheque books. It was a lot of money to pay by cash, but in the end I used my business account, which came with a cheque book.

 

[Oracle]

I use cheques all the time... to pay for riding lessons for the kids, to pay credit cards, to pay the garage bill...they are essential.

Back when I was an office boy in the early 1970s I used to be handed cheques up to say £150,000 to take by hand from an insurance company to my firm. A few years later some bright spark woke up to internal bank 'telegraphic transfers' and the days of the cheque for large payments were doomed. Today CHAPS and faster payments have revolutionised payments. However, too many banks don't do faster payments. There is still a role for cheques and they should carry on after 2018...we need them.

 

[route:oxford]

I use cheques all the time... to pay for riding lessons for the kids, to pay credit cards, to pay the garage bill...they are essential.

Back when I was an office boy in the early 1970s I used to be handed cheques up to say £150,000 to take by hand from an insurance company to my firm. A few years later some bright spark woke up to internal bank 'telegraphic transfers' and the days of the cheque for large payments were doomed. Today CHAPS and faster payments have revolutionised payments. However, too many banks don't do faster payments. There is still a role for cheques and they should carry on after 2018...we need them.

Which banks don't "do" faster payments?

I know there are a few sort-codes relating to saving accounts that aren't compliant likewise with some HO collection accounts, but they are disappearing by the day.

Will be good to see the back of the cheque guarantee scheme - it was always a bit risky. Many retailers didn't realise that the guarantee lapsed if the issuer died in-between writing the cheque and it being presented.

 

[moonrakerz]

About time! Cheques are an anachronism taking far too long to process in today's world

So true - but why do many electronic payments take as long ??

 

[Xenophon PCDGS]

I use cheques all the time... to pay for riding lessons for the kids, to pay credit cards, to pay the garage bill...they are essential.

Back when I was an office boy in the early 1970s I used to be handed cheques up to say £150,000 to take by hand from an insurance company to my firm. A few years later some bright spark woke up to internal bank 'telegraphic transfers' and the days of the cheque for large payments were doomed. Today CHAPS and faster payments have revolutionised payments. However, too many banks don't do faster payments. There is still a role for cheques and they should carry on after 2018...we need them.

Our local M.P. has campaigned on behalf of charitable institutions for cheques to be retained after 2018, The banks should see that there is still such a facility available, internally financed out of their profits.

I regularly send cheques (not always for the same amount) to organizations such as the Royal British Legion, the British Heart Foundation and the R.N.L.I., when they write to me. The amount suggested by each charity can vary from one letter to the next, so a direct debit is not suitable. Each Christmas, cheques can be used to pay for the raffle tickets that many charities send to you.

This is just one example of how cheques can still fulfil a useful purpose in life. I am sure that there are many others, as both Oracle and Greenback have clearly stated examples of in their reply on this thread..

 

[swt_passenger]

Looking into my crystal ball earlier, I saw a post appearing in this forum later in the month. It appeared to say something like:

I got on a train with no cash or credit cards and attempted to buy a ticket from the guard with my trusty old chequebook. He started mentioning penalty fares, or was it an unpaid fare notice?

contd p94...

 

[SS4]

So true - but why do many electronic payments take as long ??

I'm not entirely sure. With CHAPS and FEP (I think they're the right acronyms) money can be transferred almost instantaneously. I suspect either a lack of will on the banks' part or simply because it's easier and cheaper to use BACS for general payments.

Our local M.P. has campaigned on behalf of charitable institutions for cheques to be retained after 2018, The banks should see that there is still such a facility available, internally financed out of their profits.

I regularly send cheques (not always for the same amount) to organizations such as the Royal British Legion, the British Heart Foundation and the R.N.L.I., when they write to me. The amount suggested by each charity can vary from one letter to the next, so a direct debit is not suitable. Each Christmas, cheques can be used to pay for the raffle tickets that many charities send to you.

This is just one example of how cheques can still fulfil a useful purpose in life. I am sure that there are many others, as both Oracle and Greenback have clearly stated examples of in their reply on this thread..

Cheques do still have some uses yet they're being slowly superseded by online transactions for most younger people. There is also protection on credit cards for purchases over £100 whereas I believe there is no such protection on cheques

 

[Nym]

There is a degree of protection on all transations in law. For examples using cheque payments there are the distance selling regulations, trade discriptions act, etc.

There is also the option to cancel cheques, not somthing that can be done with Faster Payments Service.

There is also one example that comes to mind, a payment to a not very well known utility company was made, and they denied reciving this.

If I'd have made payment by FPS (that they do like), and they'd have denied reciving it, tracing this would be quite hard to do, as they could use any number of excuses and there isn't a definate paper trail.

As I'd paid them by cheque, I phoned my bank who kindly provided me with a copy of the cheque returned, with the utility company's stamp, reference number (of my account with them), and their account numbers and sort code printed on the back of it. If this had been FPS there wouldn't be as much of a paper trail to come back on.

Oh, I never revicived the FPS transaction, can be used quite often (and I have had it used quite often)
Whereas, I didn't ever recive the cheque, I didn't cash it, when I get a copy of it with their name and account number printed on the back thats pretty much proof...

 

[IanXC]

If I'd have made payment by FPS (that they do like), and they'd have denied reciving it, tracing this would be quite hard to do, as they could use any number of excuses and there isn't a definate paper trail.

As I'd paid them by cheque, I phoned my bank who kindly provided me with a copy of the cheque returned, with the utility company's stamp, reference number (of my account with them), and their account numbers and sort code printed on the back of it. If this had been FPS there wouldn't be as much of a paper trail to come back on.

Oh, I never revicived the FPS transaction, can be used quite often (and I have had it used quite often)
Whereas, I didn't ever recive the cheque, I didn't cash it, when I get a copy of it with their name and account number printed on the back thats pretty much proof...

The audit trail for a Faster Payment is actually much better than for a Cheque. Each payment has a unique reference number, and the system will not accept payments to details which are not valid. The trouble comes where reference numbers are input incorrectly, as if the incorrect number is valid then the beneficiary organisation is likely to credit the funds to someone else's account/bill automatically.

Cheques of course also have the risk of conversion. If you simply write your cheque "Pay Barclaycard" then who is to say which card? You should write the whole credit card number after Barclaycard on the front of the cheque, but honestly how many people do?

It's the only way I can think of to pay for things by post. I wouldn't gladly write down credit card details on a form to send off when I'd much rather post a cheque. And quite a lot of pepole aren't comfortable sending BACS or FPS details for electronic transfer. I have seen talk elsewhere of cheques being withdrawn entirely by 2018...

Ah now this old chestnut, just think a second of what information is on a cheque. Sort code, account number, account name, bank, branch, and your signature...

Your credit card details are of much less use to a fraudster than the details on the face of a cheque, any trouble that is caused is confined to your credit card account rather than your bank account, and you have the protection of the Unrecognised Payments Regulations.

Now admittedly the payments are in different directions, but would you rather send someone your Sort code, account number and account name, or would you rather send it all on a nice bit of paper with your signature helpfully included?!

The main issue is that the current system is set up for much higher volumes than are currently used in it. In 1998 there were 1600 million cheques written in the UK, last year it was less than 600 million. The system is just totally out sized for its current and projected usage.

 

[Squaddie]

I regularly send cheques (not always for the same amount) to organizations such as the Royal British Legion, the British Heart Foundation and the R.N.L.I., when they write to me. The amount suggested by each charity can vary from one letter to the next, so a direct debit is not suitable. This is just one example of how cheques can still fulfil a useful purpose in life.

But you could make a one-off electronic payment via your online banking service in less time than it takes to write the cheque. The charity's bank account details will invariably appear somewhere on the letter or on their website.

 

[Blindtraveler]

Looking into my crystal ball earlier, I saw a post appearing in this forum later in the month. It appeared to say something like:

I got on a train with no cash or credit cards and attempted to buy a ticket from the guard with my trusty old chequebook. He started mentioning penalty fares, or was it an unpaid fare notice?

contd p94...

haha, i've been caught that way!

I've paid by cheque for tikets myself for work expense purroses and i still see a need for them as older less frequent travelers who dont use plastic wil still have a need for them

 

[Oswyntail]

I administer a sports club, that holds a couple of tournaments and a few beginners' courses each year. Entry at about £6; courses at £40 We are looking into PayPal, but not everyone has online access, and we would need to develop online application forms etc. Cash by post is not on. Sure, cheques are a nuisance, but there should be a better alternative before they are dropped completely.

 

[Greenback]

I agree. In my opinion, the rush to abolish cheques is being led by the banks and large retailers, without much thought for the small businesses and other organisations that still find them convenient.

 

[Blindtraveler]

postal order?

 

[cuccir]

postal order?

They're surprisingly expensive to buy!

 

[IanXC]

I administer a sports club, that holds a couple of tournaments and a few beginners' courses each year. Entry at about £6; courses at £40 We are looking into PayPal, but not everyone has online access, and we would need to develop online application forms etc. Cash by post is not on. Sure, cheques are a nuisance, but there should be a better alternative before they are dropped completely.

Provide the entrants with the club's sort code and account number, and a reference\membership number. You could have a second account for the club only for receiving payments if you're really concerned.


--- old post above --- --- new post below ---

They're surprisingly expensive to buy!

Postal orders are now processed in the cheque clearing, although what future they have is unclear.

 

[SS4]

I administer a sports club, that holds a couple of tournaments and a few beginners' courses each year. Entry at about £6; courses at £40 We are looking into PayPal, but not everyone has online access, and we would need to develop online application forms etc. Cash by post is not on. Sure, cheques are a nuisance, but there should be a better alternative before they are dropped completely.

What's wrong with cash on arrival and a receipt? £40 isn't all that much to carry. It wouldn't surprise me if most of the people who still use cheques are just being obstinate

 

[Squaddie]

I agree. In my opinion, the rush to abolish cheques is being led by the banks and large retailers, without much thought for the small businesses and other organisations that still find them convenient.

It's hardly a "rush": cheques are not due to be finally phased out until 2018. They've already been abolished in several countries, including Finland, Poland and the Netherlands. There are always alternative ways of paying.

 

[Greenback]

Yes, there are. I don't use cheques,. but there are quite a few people and organisations that do. They will be forced into spending money on bringing in alternative payment methods. The people who will benefit most are, guess who, our friends the bankers and the likes of Tesco, who already make millions of pounds in proft whilst the small businesses that are supposed to help bring the country back into growth are going to be saddled with more costs.

 

[Xenophon PCDGS]

But you could make a one-off electronic payment via your online banking service in less time than it takes to write the cheque. The charity's bank account details will invariably appear somewhere on the letter or on their website.

....and how do I send in the stubs for the raffle tickets which they always say should accompany the cheque, as they check them on receipt of their inward mail? This is their ruling, not mine. Many elderly people do not use computers....despite the banks stating the case somewhat differently.

On another VERY relevant manner, there are very many people who will refuse ONLINE banking services, because of the fact that these are NEVER totally proof against criminals who are always finding new methods of crime using the computerised expertise offered by people with much computer skills, especially from the Asian continent. Only a few days ago, SONY gave a press release about many millions of accounts (some with credit card details) that have been accessed by computer fraud...AND THIS WAS STATED TO BE THE SECOND SUCH OCCURRENCE THIS YEAR!!

Are you sure that such banking facilies exist for payment to all very small businesses such as our window cleaner, who will accept a cheque rather than cash, for fear of being mugged

 

[Oswyntail]

What's wrong with cash on arrival and a receipt? £40 isn't all that much to carry. It wouldn't surprise me if most of the people who still use cheques are just being obstinate

Pre-payment gives a measure of commitment, and adds some certainty to planning. As with any small business, sports clubs rely on small funds - cash on arrival makes it more optional. And yes, we do keep the funds for "no shows"