With all the computer wizardry at their disposal, and the ability to make all sorts of transactions in a nanosecond, why does it still take banks three working days to clear a f***ing cheque???
Quick links: NewsBiscuit Home • Chat Room • Writers' Room • Top Ten
Bloody cheques
(18 posts) (11 voices)
-
godly1966
offlineMemberI get paid direct in to my bank account, it takes longer to go through over a weekend and bank holidays. WHY! do bank computers all get turned off at 5 o’clock on a Friday, no because when I spend money on my debit card at the weekend it comes out straight away. The trouble with bankers is they are all a bunch of bankers.
Posted 10 months ago # -
Sinnick
offlineMemberYou'll find it can take a lot longer than just 3 days. The cheque needs to be sent to the cheque clearing centre, put onto microfiche, credited to your account, reconciled with the originating bank, etc. If I remember correctly, the originator gets interest for part of the cycle, but not all. There are strong protocols that define who does what, and when, else the banking system would collapse ... ah, I can see a problem here.
Cheque payments will be extinct in a few years
BACS payments necessarily take 3 working days, so a debit made on Monday is credited on Wednesday. Again, strong protocols prevent mishaps, unless someone sends the wrong file (RBS please note)
"Faster Payments" are near-instantaneous, and all the major banks use this relatively new protocol for the vast majority of inter-bank transactions
And to answer Scroat's question - "because they can't be arsed". They want cheques to disappear forever - they're expensive to handle and unreliable
And to answer godly - "because it's always been like that". It would require impossible synchronisation between ALL banks to change it - I'd estimate £10's of millions to fix it for each bank, with a very high risk of failure. And why should they, when "Faster Payments" is 24x7 ?
Posted 10 months ago # -
Ironduke
offlineMember'sniff, sniff'........is that the merest whiff of crisp fivers, an impression of a fat biro on a chain in the index finger, the faint ink spatter on the collar, an air of knowing cynicism, and a Bentley key fob outline in your pocket.
I denounce thee, Sinnick...There be BANKERRRRRRRRRRRRRRRRR
Who's got the rope?
Posted 10 months ago # -
The All New Jeni B
offlineMemberI have a vague recollection that a few years ago, some of the banks brought in '24hr' cheque clearance. It was only between some banks, and you had to pay a fiver for the privilege.
Also, if memory serves, Lloyds TSB have always had an instant cheque clearance, if both payee and drawer are TSB customers.
When I was paid by cheque in the late 90s, I opened a TSB account purely because the company I worked for banked with them.
Posted 10 months ago #
Reply
You must log in to post.