UK Wants To Phase Out Checks By 2018

The board of the UK Payments Council has set a date to phase out checks in a bid to encourage the advance of other forms of payment. They added, however, that the target of Oct. 2018 would only be realized if adequate alternatives are developed. "The goal is to ensure that by 2018 there is no scenario where customers, individuals or businesses, still need to use a cheque. The board will be especially concerned that the needs of elderly and vulnerable people are met," the Payments Council said in a statement.

Comments

Re:How do people pay eachother?

[Slashdot Parent]

it's so much more convenient to just enter a bank transfer order on your online banking web site.

And what do you do if you aren't near a trustworthy, network-connected computer?

I'm not trying to defend checks. My clients and customers all pay me by check, and I despise it. I would 100x prefer to log into my bank account and see who paid me what, when and download that into quickbooks than to participate in the massive paper check shuffle.

Re:I thought they were already gone in EU

[Slashdot Parent]

Where do you put the Customer ID numbers on cheques? Are the completed with the IBAN numbers when you get them, or do you have to type them in yourself?

The customer's contact information is printed on the check, and there is a "memo" field to transmit any additional information.

This Cheque thing is intriguing - sound's like a device my mother used back in the 70s before I was born, only it couldn't be - could it?

It is exactly what you're picturing from the 70s. It's a terrible system, and it's pitifully insecure (hint: if you know someone's bank account # and routing #, you can create checks that draw against their account--as in, you can print them yourself on an inkjet printer, as long as you purchase the correct ink, and there are no restrictions on that).

Unfortunately, the US doesn't have any better, realistic way to transfer money between individuals. Our options are:

1. Cash - works OK for small amounts of money, but who wants to carry large amounts and risk loss/theft?
2. ACH transfer - Takes many days to set up, and most banks won't allow ACH transfers between accounts that don't have the same owner for security reasons
3. Wire transfer - "Instantaneous", but you still need to physically go into your bank, wait in line, fill out a ton of paperwork, and pay $30 per transfer. This could be the way to get rid of checks, but as the system stands right now, it's not a reasonable way to move money around
4. Paper Checks

Unfortunately, paper checks are free, so there is no motivation for an enterprising business to invent a replacement. Who would pay for something that is free?

Some banks are starting to offer free wire transfers for their best clients. I'm guessing that means that wire transfers will eventually be free for all clients, but it's slow going.

I offer electronic payments to my tenants, but none of them will switch. Even when I tell them they'll never have to worry about another late payment fee again. No one will switch. So I still waddle over to the bank each month and deposit check after check and pray that they all clear. Unbelievable.

Re:Money spinner

[Slashdot Parent]

Banks charge businesses for processing cheques, too. As a business you cannot escape these charges except by taking cash and stuffing it under a matress (business accounts charge for cash deposits too).

You need to change banks. My bank does not charge for business deposits, either cash or check.

Re:Money spinner

[Slashdot Parent]

Most US credit cards carry no annual fee, and all debit cards are free.