You are here: Home - Saving & Banking - News -

Cheque clearing to go from six to one weekday

Written by: Paloma Kubiak
The time it takes for a cheque to be processed will fall from six weekdays to the next weekday from October.

As part of the image-based cheque clearing system being introduced by The Cheque and Credit Clearing Company (C&CCC), it will be quicker to process the transaction from 30 October this year.

It means that if customers pay in a cheque on a weekday, they will be able to withdraw the funds by 23.59 on the next weekday latest (excluding bank holidays).

This also means that when a cheque is paid in, the recipient will receive the money in the account much sooner and the money will also leave the account of the person or business faster.

The C&CCC said the system will go live with some banks and building societies before being rolled out to all the industry in the second half of 2018.

Although cheque usage is declining, 477 million were written in 2016.

How will it work?

Customers will still write and pay-in cheques in the same way as they do today, but with cheque imaging, banks and building societies may offer their customers the additional option of paying-in an image of the cheque – by using a secure mobile banking app on their smartphone or tablet – rather than having to go to a bank to pay it in.

Some banks have already rolled out imaging technology for some of their customers, but only where they receive a cheque from another customer of the same bank.

The C&CCC said that ultimately the new system will see cheques from all banks and building societies cleared via image to the faster timescale, even when the cheque writer and cheque recipient are with different banks and building societies.

James Radford, chief executive officer of the C&CCC, said: “These changes will put cheques firmly in the 21st century, delivering real and important benefits for the many individuals, charities and businesses that regularly use cheques.  Not only will cheques clear faster but banks and building societies may offer their customers the option of paying in an image of a cheque rather than the paper cheque itself.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Large gadgets banned from hand luggage on some flights to UK

Large mobile phones, laptops, tablets and e-readers won’t be allowed in the cabin on certain flights to the UK, the...