The UK is set to roll-out an image-based cheque clearing system from 30 October 2017. The Cheque and Credit Clearing Company have announced that waiting for five to six working days to get money through your accounts will be cut down to just one day.
Initially, only a few banks and building societies will be able to do this, but the rest of the industry will be able to offer the service by H2 2018.
The process is simple – you take a picture of the cheque you’ve written, and send it to the bank – this will then be exchanged between banks electronically.
Cheque imaging is about providing more choice so as well as being able to pay a cheque into a bank in the usual way – via a branch or ATM –customers will be able to use their smartphone.
Some banks and building societies may be able to 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.
The way the current method using the paper-based clearing system works is by having the actual paper cheque transported around the country to be cleared.
“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,” comments James Radford, chief executive of the Cheque and Credit Clearing Company.
“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.”