Cheques: does anybody still use them?

[ahinton]

It does seem difficult to persuade some people that we use cheques because we prefer them. I use direct transfer for a small number of regular transactions, but cheques for the vast majority. It does sound somewhat superior to suggest that we do not use the direct system because we do not realise how much more convenient it is.

Forget the "we" - and no patronising sentiments are intended; I have simply encountered people who didn't realise that this was more convenient for them than cheques. I'm still waiting to hear from someone who prefers cheques in most circumstances to tell us why something that often requires one if not two separate mailing exercises, at someone's expense, plus up to a week and a half of time between issue and clearing when two mailings are indeed involved, what it is that's so wonderful about this method when there are others available.

[ahinton]

Depends on the bank, The Co-op & Santander allow payments up to £100.000 in one transaction.

But do they do so on the faster payment system or only via BACS without the faster payment system (which is what I was referring to)?

[Flosshilde]

it's not all about banks trying to make even more money, because cheques cost money to produce, money to send and more money to process than do direct transfers which, whilst admittedly cheaper for banks than cheque processing

Yes, cheques cost more than direct transfer - of course it's about banks making bigger profits!

also cheaper for the customers who make and receive them, since banks do not usually charge for this service

My bank (the Co-op) doesn't charge me for processing cheques.

If I'm selling work at an art or craft fair if people couldn't pay by cheque then they probably wouldn't buy from me. Credit card facilities cost far too much to set up, & I would be charged for each transaction.

[ahinton]

Since most ‘large corporations’ would probably not use cheques to pay other large corporations, then it’s reasonable to assume that many of these cheques were written in favour of individuals or small businesses.

Indeed - and that's what I meant.

And if these people prefer to be paid with cheques, they may well prefer writing cheques. That still leaves a lot of individuals using cheques, either because they prefer receiving them or writing them, or both. In any case, more than a ‘handful’.

"If", yes, but how many such individuals do you suppose such large corporations ask first for their preferred payment method before issuing cheques? I recently had to make two insurance claims for the same loss from two different companies (albeit each with the same parent company); one made a pig's ear of paying by cheque and then when they finally got the address right the cheque got mislaid in the mail despite having been sent via Royal Mail Special Delivery - it took 29 days altogether from first cheque issue to cleared funds into my account; the other asked how I'd like to be reimbursed, I said via BACS and the money was cleared into my account within seconds. Case closed as far as I'm concerned.

[french frank]

I'm still waiting to hear from someone who prefers cheques in most circumstances to tell us why something that often requires one if not two separate mailing exercises, at someone's expense, plus up to a week and a half of time between issue and clearing when two mailings are indeed involved, what it is that's so wonderful about this method when there are others available.

Someone hands you a bill, you write out a cheque for the amount, you hand them the cheque. If the bill arrives by post, it's the same except putting invoice and cheque in an envelope (I have, of all sizes) and putting a stamp on it (I always keep first and second class stamps). For me, the post box is one minute from my front door.

Easier than finding out and noting down someone's bank details for what is often a one-off to that person and then the rest of the transaction will also take several minutes.

Why do I need to bother (as payer) how long the cheque finally takes to clear? Stamps may have increased 'horrendously' but they aren't yet ruinous. And the convenience is worth the cost

[ahinton]

Credit card facilities cost far too much to set up, & I would be charged for each transaction.

In this country they certainly do, which is why I ditched credit card acceptance years ago in favour of PayPal which still costs but not so much; credit card service providers in UK are far too greedy and one has only to compare this situation with that in US to realise this.

Almost anyone with a business bank account gets charged by the transaction, in and out of the account, be those transactions cheques, cash, standing orders, direct debits, direct transfers or whatever it is.

[MrGongGong]

In this country they certainly do, which is why I ditched credit card acceptance years ago in favour of PayPal which still costs but not so much; credit card service providers in UK are far too greedy and one has only to compare this situation with that in US to realise this.

Almost anyone with a business back account gets charged by the transaction, in and out of the account, be those transactions cheques, cash, standing orders, direct debits, direct transfers or whatever it is.

Why do you need a business bank account ?
or is a business "back" account for Osteopaths ?

[ahinton]

Someone hands you a bill, you write out a cheque for the amount, you hand them the cheque. If the bill arrives by post, it's the same except putting invoice and cheque in an envelope (I have, of all sizes) and putting a stamp on it (I always keep first and second class stamps). For me, the post box is one minute from my front door.

Easier than finding out and noting down someone's bank details for what is often a one-off to that person and then the rest of the transaction will also take sevral minutes.

Why do I need to bother (as payer) how long the cheque finally takes to clear? Stamps may have increased 'horrendously' but they aren't yet ruinous. And the convenience is worth the cost

To you, perhaps, but not to me and not to anyone who has not mailbox or post office within walking distance. Most of the direct ransfers that I make are to people or businesses that I pay regularly and which do not accept credit cards (otherwise I'd pay that way). One-off payments to people of businesses that don't accept credit cards can take a few moments by phone, but sooner that than mess around writing cheques which take almost as long to do as calling the bank and instructing a direct transfer. I don't both how long payments that I make take to clear into the payee's account but I do bother about those made to me and how long they take to clear into mine!

[Cavaradossi]

But do they do so on the faster payment system or only via BACS without the faster payment system (which is what I was referring to)?

By Faster Payment, in the account within 2 hours, usually within seconds.

http://www.paymentscouncil.org.uk/resources_and_publications/faster_payments_value_limits/

[ahinton]

Why do you need a business bank account ?
or is a business "back" account for Osteopaths ?

Ah, the dreaded typo! Thank for alerting me to my error which I've now corrected. But you ask why I need a business bank account when you are yourself self-employed? Sorry - there's something here that I don't understand, so maybe you could explain why you asked...

That said, the days of "free" banking for people who don't have businesses are almost over in any case.

[ahinton]

By Faster Payment, in the account within 2 hours, usually within seconds.

http://www.paymentscouncil.org.uk/re..._value_limits/

Very many thanks for your clarification here, which is welcome and informative and demonstrates that many more faster payment transactions are possible, free of charge, than either I had thought or was originally the case when the system began.

[Beef Oven]

Why do you need a business bank account ?
or is a business "back" account for Osteopaths ?

I am self-employed and I do not use a business account. ahinton is being a tag-nut as usual.

.

[VodkaDilc]

I'm still waiting to hear from someone who prefers cheques in most circumstances to tell us why something that often requires one if not two separate mailing exercises, at someone's expense, plus up to a week and a half of time between issue and clearing when two mailings are indeed involved, what it is that's so wonderful about this method when there are others available.

Two examples of my frequent use of cheques - and no mailing involved:

1 The newsagent sends a bill at the end of each month with that day's papers. The next day I write a cheque and put it in the letterbox for collection when that day's paper is delivered.

2 Boiler is repaired and boilerman writes out a bill. I write a cheque and give it to him.

Could any system be easier?

[MrGongGong]

Ah, the dreaded typo! Thank for alerting me to my error which I've now corrected. But you ask why I need a business bank account when you are yourself self-employed? Sorry - there's something here that I don't understand, so maybe you could explain why you asked...

That said, the days of "free" banking for people who don't have businesses are almost over in any case.

Unless you really need "business" services from a bank there is no need to pay for every transaction.
people on PAYE don't , there's no requirement from the revenue
so why pay for something that you don't need ?

I don't need a loan from the bank, i've never met my bank manager and given the nature of what I do they wouldn't be interested in financing me anyway.
Free banking might disappear as you say but while it's here then one might as well take advantage.

[french frank]

To you, perhaps, but not to me and not to anyone who has not mailbox or post office within walking distance.

But I was reponding to what you said. "I'm still waiting to hear from someone who prefers cheques in most circumstances to tell us why &c..." I took it to be a request to answer for myself (since I prefer cheques in most circumstances).

Free banking might disappear as you say but while it's here then one might as well take advantage.

Yes, Mr GG. I have no bank charges and no perks on my account.