Cheques to be phased out in 2018
Discussion
http://news.bbc.co.uk/1/hi/8414341.stm
I use cheques regularly.
How would one pay for services/goods with sole (or soul baby) traders. What are the possible replacements?
I am imagining it will be tech heavy with some sort of electronic Futurama style instant funds transfer system? The interweb will all be on our watches or in the chips implanted in our necks?
I use cheques regularly.
How would one pay for services/goods with sole (or soul baby) traders. What are the possible replacements?
I am imagining it will be tech heavy with some sort of electronic Futurama style instant funds transfer system? The interweb will all be on our watches or in the chips implanted in our necks?
This was announced about two years ago and has been discussed a couple of times here already.
For medium to large scale businesses, this won't mean a great deal. For many such entities, it will actually mean an improvement in efficiency. Many larger operators no longer accept cheques anyway.
Where it will hurt will be smaller businesses, charities and person to person transactions. Electronic banking often means that the parties concerned may need to install new technology - usually at their own cost - and will probably mean ongoing technology hire and support fees. This may be a cost that individuals and smaller operations would prefer to do without.
A few months ago, the banks back-pedalled somewhat and stated that even though the old fashioned "cheque" would disappear in 2018, a paper based substitute would reappear to replace it. However, it is highly likely that this will be a much more expensive option than the cheque is at the moment.
For medium to large scale businesses, this won't mean a great deal. For many such entities, it will actually mean an improvement in efficiency. Many larger operators no longer accept cheques anyway.
Where it will hurt will be smaller businesses, charities and person to person transactions. Electronic banking often means that the parties concerned may need to install new technology - usually at their own cost - and will probably mean ongoing technology hire and support fees. This may be a cost that individuals and smaller operations would prefer to do without.
A few months ago, the banks back-pedalled somewhat and stated that even though the old fashioned "cheque" would disappear in 2018, a paper based substitute would reappear to replace it. However, it is highly likely that this will be a much more expensive option than the cheque is at the moment.
Lucas CAV said:
Hugo a Gogo said:
simple bank transfer
that's what everyone does in Germany
How do you pay someone at home - no access to my bank there??that's what everyone does in Germany
you fill in the slip and stick it in the bank's postbox, or post it, or you use the terminal at the bank, or you go into a branch of the payee's bank and hand over cash (or any other bank or post office, but then that costs a couple of quid
or you could get a computer at home, they're all the rage
Hugo a Gogo said:
Lucas CAV said:
Hugo a Gogo said:
simple bank transfer
that's what everyone does in Germany
How do you pay someone at home - no access to my bank there??that's what everyone does in Germany
you fill in the slip and stick it in the bank's postbox, or post it, or you use the terminal at the bank, or you go into a branch of the payee's bank and hand over cash (or any other bank or post office, but then that costs a couple of quid
or you could get a computer at home, they're all the rage
t - I am sure I am not alone in making no use of internet banking.no tttishness involved
basically the payee gives his account number and sort code, you can either fill in a transfer slip, or do an electronic one, at home or in the branch
it is quite mystifying how no-one just fills in transfer slips to themselves from all these other bank accounts though, I suppose they would get caught???
ttishness involvedbasically the payee gives his account number and sort code, you can either fill in a transfer slip, or do an electronic one, at home or in the branch
it is quite mystifying how no-one just fills in transfer slips to themselves from all these other bank accounts though, I suppose they would get caught???
Not everyone has access to a computer all the time.
Not everyone carries a computer all the time on their person.
I do a lot of financial work with a charity and I can state categorically that the inability to accept cheques from donors or for subscriptions will cause us major headaches and inconvenience.
The great thing about a cheque book is that it is portable. If I spot someone who owes us a subscription and if I remind them of their sum due, they can usually pay me straight away with a cheque. If that was not possible, they would probably (as some do even do now) tell me that, "Oh, I'll pay you by BACS later". I can tell you that this type of promise of payment is FAR less likely to be acted on as immediately (if at all) compared to the instanteneous payment possible by cheque.
Another problem for charities is the fact that persons responsible for fund collection may not have access to the computerised bank records of the entity (due to splitting of duties within the organisation). If that is the case, that person may not be able to verify if someone has paid without constant liaising with those who DO have access to the computer banking.
With a cheque (or indeed cash) the person collecting funds knows exactly whether someone has paid without having to refer to computerised or paper statements.
Not everyone carries a computer all the time on their person.
I do a lot of financial work with a charity and I can state categorically that the inability to accept cheques from donors or for subscriptions will cause us major headaches and inconvenience.
The great thing about a cheque book is that it is portable. If I spot someone who owes us a subscription and if I remind them of their sum due, they can usually pay me straight away with a cheque. If that was not possible, they would probably (as some do even do now) tell me that, "Oh, I'll pay you by BACS later". I can tell you that this type of promise of payment is FAR less likely to be acted on as immediately (if at all) compared to the instanteneous payment possible by cheque.
Another problem for charities is the fact that persons responsible for fund collection may not have access to the computerised bank records of the entity (due to splitting of duties within the organisation). If that is the case, that person may not be able to verify if someone has paid without constant liaising with those who DO have access to the computer banking.
With a cheque (or indeed cash) the person collecting funds knows exactly whether someone has paid without having to refer to computerised or paper statements.
Eric Mc said:
Not everyone has access to a computer all the time.
Not everyone carries a computer all the time on their person.
I do a lot of financial work with a charity and I can state categorically that the inability to accept cheques from donors or for subscriptions will cause us major headaches and inconvenience.
The great thing about a cheque book is that it is portable. If I spot someone who owes us a subscription and if I remind them of their sum due, they can usually pay me straight away with a cheque. If that was not possible, they would probably (as some do even do now) tell me that, "Oh, I'll pay you by BACS later". I can tell you that this type of promise of payment is FAR less likely to be acted on as immediately (if at all) compared to the instanteneous payment possible by cheque.
Another problem for charities is the fact that persons responsible for fund collection may not have access to the computerised bank records of the entity (due to splitting of duties within the organisation). If that is the case, that person may not be able to verify if someone has paid without constant liaising with those who DO have access to the computer banking.
With a cheque (or indeed cash) the person collecting funds knows exactly whether someone has paid without having to refer to computerised or paper statements.
This!Not everyone carries a computer all the time on their person.
I do a lot of financial work with a charity and I can state categorically that the inability to accept cheques from donors or for subscriptions will cause us major headaches and inconvenience.
The great thing about a cheque book is that it is portable. If I spot someone who owes us a subscription and if I remind them of their sum due, they can usually pay me straight away with a cheque. If that was not possible, they would probably (as some do even do now) tell me that, "Oh, I'll pay you by BACS later". I can tell you that this type of promise of payment is FAR less likely to be acted on as immediately (if at all) compared to the instanteneous payment possible by cheque.
Another problem for charities is the fact that persons responsible for fund collection may not have access to the computerised bank records of the entity (due to splitting of duties within the organisation). If that is the case, that person may not be able to verify if someone has paid without constant liaising with those who DO have access to the computer banking.
With a cheque (or indeed cash) the person collecting funds knows exactly whether someone has paid without having to refer to computerised or paper statements.
There is no doubt that the use of cheques is diminishing. I write them fairly infrequently myself.
However, cheques still have a function to perform and I am very angry that banks (who should be looking very carefully at their social responsibilities these days - especially those that are being propped us by the taxpayer).
As I said earlier, in reality, they will NOT be replacing the "cheque" at all. They will just withdraw old style cheques and replace them with an exact copy which will be called something else and then charge the user for the priviledge.
However, cheques still have a function to perform and I am very angry that banks (who should be looking very carefully at their social responsibilities these days - especially those that are being propped us by the taxpayer).
As I said earlier, in reality, they will NOT be replacing the "cheque" at all. They will just withdraw old style cheques and replace them with an exact copy which will be called something else and then charge the user for the priviledge.
ILoveLamp said:
I think it's a generation thing.
The last cheque I wrote was for my 106 Rallye, back in 2007.
This was only because I didn't want to carry the cash on me.
Do you run a small business?The last cheque I wrote was for my 106 Rallye, back in 2007.
This was only because I didn't want to carry the cash on me.
Do you work for a charity?
Just because you aren't a big cheque user does not mean that other enities will not be badly affected by these changes. I can see charities collapsing because of this - especially smaller ones.
eric said:
Where it will hurt will be smaller businesses, and person to person transactions. Electronic banking often means that the parties concerned may need to install new technology - usually at their own cost - and will probably mean ongoing technology hire and support fees. This may be a cost that individuals and smaller operations would prefer to do without.
A few months ago, the banks back-pedalled somewhat and stated that even though the old fashioned "cheque" would disappear in 2018, a paper based substitute would reappear to replace it. However, it is highly likely that this will be a much more expensive option than the cheque is at the moment.
This is where my own interests lie since I am not a large corporationA few months ago, the banks back-pedalled somewhat and stated that even though the old fashioned "cheque" would disappear in 2018, a paper based substitute would reappear to replace it. However, it is highly likely that this will be a much more expensive option than the cheque is at the moment.
The market, my classes, stuff I always use cheques to pay for.Eric Mc said:
ILoveLamp said:
I think it's a generation thing.
The last cheque I wrote was for my 106 Rallye, back in 2007.
This was only because I didn't want to carry the cash on me.
Do you run a small business?The last cheque I wrote was for my 106 Rallye, back in 2007.
This was only because I didn't want to carry the cash on me.
Do you work for a charity?
Just because you aren't a big cheque user does not mean that other enities will not be badly affected by these changes. I can see charities collapsing because of this - especially smaller ones.
No.
I understand the use of cheques from a business point of view as I deal with payments by SMEs daily. From a personal perspective, I believe younger generations use cheques less.
Forget the personal perspective. The big impact on this is not so much on individuals but on smaller businesses, clubs, societies and charities.
Having said that, if and when you run your own household - which one day you may - how do you intend to pay
the plumber
the tree surgeon
the painter and decorator
the general builder/handyman
etc?
Of course, there is always cash but the whole POINT of a cheque is that it allows you to pay people WITHOUT the need to carry large bundles of cash about your person.
Having to pay tradesman like that using electronic transfers is going to be mighty inconvenient - for both of you.
No doubt, in decades down the line people will carry with them wallet friendly electronic bank cards which will act as cheques used to or be able to pay each other directly and instantly using mobile electronic technology. I do not think we are there yet and I doubt if we will be by 2050, let alone 2018.
At that time, we will see a justifiable reason for ditching the cheque for good - maybe.
Banks want to phase out cheques for THEIR sakes - not yours.
Having said that, if and when you run your own household - which one day you may - how do you intend to pay
the plumber
the tree surgeon
the painter and decorator
the general builder/handyman
etc?
Of course, there is always cash but the whole POINT of a cheque is that it allows you to pay people WITHOUT the need to carry large bundles of cash about your person.
Having to pay tradesman like that using electronic transfers is going to be mighty inconvenient - for both of you.
No doubt, in decades down the line people will carry with them wallet friendly electronic bank cards which will act as cheques used to or be able to pay each other directly and instantly using mobile electronic technology. I do not think we are there yet and I doubt if we will be by 2050, let alone 2018.
At that time, we will see a justifiable reason for ditching the cheque for good - maybe.
Banks want to phase out cheques for THEIR sakes - not yours.
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