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By (user no longer on site)
over a year ago
|
"Because with cash transfer it is exactly that. A cheque is not cash so takes time to process.
but why"
I could be wrong but I think the cheque has to be sent back to the original bank to be confirmed and then they ok the money into your account? Like I said though, I could be wrong |
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By (user no longer on site)
over a year ago
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"Because with cash transfer it is exactly that. A cheque is not cash so takes time to process.
but why
I could be wrong but I think the cheque has to be sent back to the original bank to be confirmed and then they ok the money into your account? Like I said though, I could be wrong"
askbarclays confirmed my suspicions  |
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By (user no longer on site)
over a year ago
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the cheque is sent from your bank to a clearing centre the next day. Then the day after it goes to an exchange centre where it is picked up by the issuing bank. I had fun Googling this  |
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"Because with cash transfer it is exactly that. A cheque is not cash so takes time to process.
but why
I could be wrong but I think the cheque has to be sent back to the original bank to be confirmed and then they ok the money into your account? Like I said though, I could be wrong
askbarclays confirmed my suspicions "
what an old fashioned way of doing it. i pay cheques into a machine in the bank, it reads the cheque and even prints a copy on the paper it gives you, surley the machine can read the account number on the cheque and sort the payment instantly, im sure it wouldnt be that hard |
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By *nnyMan
over a year ago
Glasgow |
"the cheque is sent from your bank to a clearing centre the next day. Then the day after it goes to an exchange centre where it is picked up by the issuing bank. I had fun Googling this "
Given what the above must cost, you can see why banks don't like cheques. |
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By *ee VianteWoman
over a year ago
Somewhere in North Norfolk |
"Because with cash transfer it is exactly that. A cheque is not cash so takes time to process.
but why
I could be wrong but I think the cheque has to be sent back to the original bank to be confirmed and then they ok the money into your account? Like I said though, I could be wrong
askbarclays confirmed my suspicions
what an old fashioned way of doing it. i pay cheques into a machine in the bank, it reads the cheque and even prints a copy on the paper it gives you, surley the machine can read the account number on the cheque and sort the payment instantly, im sure it wouldnt be that hard"
How would the machine read the amount, check the words and numbers match, verify the cheque and signature were genuine and that the date was correct and it wasn't post-dated and that it was actually made out to you? How would the machine know if there was enough money in the account to cover the cheque? |
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By *ee VianteWoman
over a year ago
Somewhere in North Norfolk |
Reading a postcode is somewhat more simple than comparing numbers written in words and in numerals. And comparing a signature, which will not be exactly the same each time. And to read a date which could be in various formats.
In addition, banks would have to have access to each other's account information or to a system to query the account information to check the funds were there. This would have to be designed and implemented across all banks. It would cost a great deal and would be useful only in managing a payment method that banks are trying to phase out. It also may well infringe banking regulations, which are extremely stringent, relating to which systems can be connected.
Banks would also need a system to store the signature of every customer and to access those systems for verification purposes. This sounds like a huge can of privacy and security worms and another potential breach of regulations. And another expensive system to process a payment method which they are trying to discourage the use of. |
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"Because with cash transfer it is exactly that. A cheque is not cash so takes time to process.
but why
I could be wrong but I think the cheque has to be sent back to the original bank to be confirmed and then they ok the money into your account? Like I said though, I could be wrong
askbarclays confirmed my suspicions
what an old fashioned way of doing it. i pay cheques into a machine in the bank, it reads the cheque and even prints a copy on the paper it gives you, surley the machine can read the account number on the cheque and sort the payment instantly, im sure it wouldnt be that hard
How would the machine read the amount, check the words and numbers match, verify the cheque and signature were genuine and that the date was correct and it wasn't post-dated and that it was actually made out to you? How would the machine know if there was enough money in the account to cover the cheque?"
the machine does read the amount and asks me to confirm it, so it can surely read everything else, and if the machine was linked to the cheques bank then it could conferm the funds? or am i missing something, it just seems that in this day and age it should be possable |
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"Reading a postcode is somewhat more simple than comparing numbers written in words and in numerals. And comparing a signature, which will not be exactly the same each time. And to read a date which could be in various formats.
In addition, banks would have to have access to each other's account information or to a system to query the account information to check the funds were there. This would have to be designed and implemented across all banks. It would cost a great deal and would be useful only in managing a payment method that banks are trying to phase out. It also may well infringe banking regulations, which are extremely stringent, relating to which systems can be connected.
Banks would also need a system to store the signature of every customer and to access those systems for verification purposes. This sounds like a huge can of privacy and security worms and another potential breach of regulations. And another expensive system to process a payment method which they are trying to discourage the use of."
do banks not already store your signiture, if not how do they know its your signiture? |
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By *ee VianteWoman
over a year ago
Somewhere in North Norfolk |
"Reading a postcode is somewhat more simple than comparing numbers written in words and in numerals. And comparing a signature, which will not be exactly the same each time. And to read a date which could be in various formats.
In addition, banks would have to have access to each other's account information or to a system to query the account information to check the funds were there. This would have to be designed and implemented across all banks. It would cost a great deal and would be useful only in managing a payment method that banks are trying to phase out. It also may well infringe banking regulations, which are extremely stringent, relating to which systems can be connected.
Banks would also need a system to store the signature of every customer and to access those systems for verification purposes. This sounds like a huge can of privacy and security worms and another potential breach of regulations. And another expensive system to process a payment method which they are trying to discourage the use of.
do banks not already store your signiture, if not how do they know its your signiture?"
Yes but I doubt they all do so in the same way and they certainly don't have the ability to verify the signature of a customer of a different bank automatically. |
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By (user no longer on site)
over a year ago
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Cheques takes longer as they have to be presented and before honouring the value of a cheque, checks have to be made that funds are available.
That is why supermarkets and shops stopped accepting them, anyone can write a cheque but then not have the funds available to honour it. |
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By *nnyMan
over a year ago
Glasgow |
"Cheques takes longer as they have to be presented and before honouring the value of a cheque, checks have to be made that funds are available.
That is why supermarkets and shops stopped accepting them, anyone can write a cheque but then not have the funds available to honour it. "
But with a guarantee card, that's a risk borne by the banks. |
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By (user no longer on site)
over a year ago
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"the cheque is sent from your bank to a clearing centre the next day. Then the day after it goes to an exchange centre where it is picked up by the issuing bank. I had fun Googling this
Given what the above must cost, you can see why banks don't like cheques."
We are fast becoming a paperless society |
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By *ee VianteWoman
over a year ago
Somewhere in North Norfolk |
"Cheques takes longer as they have to be presented and before honouring the value of a cheque, checks have to be made that funds are available.
That is why supermarkets and shops stopped accepting them, anyone can write a cheque but then not have the funds available to honour it.
But with a guarantee card, that's a risk borne by the banks."
They also have the cost of handling the cheques, keeping them secure, banking them and then they have to wait the 3-5 days to receive the funds.
Besides, didn't banks decide they didn't want the liability represented by cheque guarantee cards and decide they would no longer issue them or guarantee cheques? |
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By *ee VianteWoman
over a year ago
Somewhere in North Norfolk |
"the cheque is sent from your bank to a clearing centre the next day. Then the day after it goes to an exchange centre where it is picked up by the issuing bank. I had fun Googling this
Given what the above must cost, you can see why banks don't like cheques.
We are fast becoming a paperless society "
Yeah but the amount of paper used in that paperless society is staggering. |
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By (user no longer on site)
over a year ago
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"Cheques takes longer as they have to be presented and before honouring the value of a cheque, checks have to be made that funds are available.
That is why supermarkets and shops stopped accepting them, anyone can write a cheque but then not have the funds available to honour it.
But with a guarantee card, that's a risk borne by the banks."
Yes which is why shops used to accept them - as yes a guarantee card had to be used, but that had to stop due to people writing cheques they could not honour and the banks had no control over it.
It doesn't take away the fact cheques take longer as they need to be cleared funds first.
Also if you read your bank account T&C's - it all varies when your bank will show as funds available. But they make it clear if you draw from the funds and the cheque is not honoured you are liable. |
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By (user no longer on site)
over a year ago
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"Cheques takes longer as they have to be presented and before honouring the value of a cheque, checks have to be made that funds are available.
That is why supermarkets and shops stopped accepting them, anyone can write a cheque but then not have the funds available to honour it.
But with a guarantee card, that's a risk borne by the banks.
They also have the cost of handling the cheques, keeping them secure, banking them and then they have to wait the 3-5 days to receive the funds.
Besides, didn't banks decide they didn't want the liability represented by cheque guarantee cards and decide they would no longer issue them or guarantee cheques?"
Yes that is true re guaranteeing cheques as no method of checking a persons bank balance when presenting a cheque for payment to guarantee the cheque wouldn't bounce!
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By (user no longer on site)
over a year ago
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"Cheques takes longer as they have to be presented and before honouring the value of a cheque, checks have to be made that funds are available.
That is why supermarkets and shops stopped accepting them, anyone can write a cheque but then not have the funds available to honour it.
But with a guarantee card, that's a risk borne by the banks."
Yes which is why shops used to accept them - as yes a guarantee card had to be used, but that had to stop due to people writing cheques they could not honour and the banks had no control over it.
It doesn't take away the fact cheques take longer as they need to be cleared funds first.
Also if you read your bank account T&C's - it all varies when your bank will show as funds available. But they make it clear if you draw from the funds and the cheque is not honoured you are liable. |
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"why when i can transfer money online to someones account the money is there within an hour, but a cheque still takes 3-5 days to clear?  "
The biggest difference is that when you do this the fact that you take money from your own account to pay into another account the bank automatically confirms you have the available cleared funds to make the payment before you complete the transaction.
When you write a cheque there's absolutely no guarantee that you have the funds available in your account at the time you write it, nor when it's presented.
The banks do use automated systems to process cheques and this will throw out accounts where the processing of the payment exceeds funds available. This would also apply to standing orders and direct debits too. The system will automatically return the payment ie not allow it to be paid if it takes you outside the boundaries the bank have set for your account. Of course if you pay funds in on the day and with done banks phone and notify them that you have done this they will change the decision and allow the payment to be made.
A little known fact about cheques is it actually takes 7 working days before the cheque is truely cleared though most banks treat it as cleared at your own risk on day 4. |
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"why when i can transfer money online to someones account the money is there within an hour, but a cheque still takes 3-5 days to clear? "
I thought the Government banned them from doing that? The government told them if a person takes money out the account it's updated immediately so when you cash a cheque that should also be done quickly. |
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By (user no longer on site)
over a year ago
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Cheques are a nuisance for a small business, and are a thing of the past.
we will soon live in a cashless society, and you can make your life easier in many ways. |
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By (user no longer on site)
over a year ago
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"Cheques are a nuisance for a small business, and are a thing of the past.
we will soon live in a cashless society, and you can make your life easier in many ways."
no so sure about a cashless society, dont like big brother knowing where i spend my money and what happens when the system crashes like it did earlier this year and people didnt have access to their own money |
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By (user no longer on site)
over a year ago
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Talking as a small business owner, customers who use cards spend 50% more than customers who use cash or cheques.
They don't have to think about the cash.
for my online store I accept cards or paypal, with paypal cash is in my bank account within 2 to 3 hours.  |
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By *aucy3Couple
over a year ago
glasgow |
when banks stored your account details,in a shoebox,cheques cleared within a maximum of three days.
since computerisation,it now takes up to six days.
cheque clearance,must be the only service,modern technology has actually slowed down.
so computerisation has either created an anomaly within the system,or the banks are giving us bullshit,and i'm pretty sure thats not anomaly i'm smelling.  |
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By (user no longer on site)
over a year ago
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Oh dear iv always just dealt in cash as never had any shop say no to it dont like or trust banks my money goes in i take it out they offer me alsorts of cards loans overdrafts but i like to stay in control and cash allows me to do that stop taking anything other than cash saves having to wait for payments if u need a card to make payments do what i do buy a pre pay card pay a small charge but never get into debt if i dont have it cant spend it |
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