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Five Days To Clear A Cheque

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Paid a cheque into my business account on Thursday just after half 3. It takes 5 working days to clear yet I recall that more than ten years ago I could draw on cheques I paid in after three days. Moreover, this is with the same bank - Barclays.

Why is this? One would assume that with the current state of technology the banks could clear a cheque the same day? What makes me even more pissed off this time round is that the cheque I paid in was a pre-printed one from a building society so it can't actually bounce! I was told that I could have had it cleared overnight if I paid them £25 at the time I paid it in. So, it can be done that quickly after all.

Honestly, this is just a total piss take.

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I think that you often used to be able to draw on a cheque before it had actually cleared, which could leave you in an awkward situation if it eventually didn't. That gap has also been used for fraud. Perhaps they're trying to tighten up on that.

I've not heard a convincing argument as to why it can't clear immediately these days, what with everything being electronic. I assume it's just the banks talking nonsense in order to hang on to for a bit for no good reason.

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Unlikely to change. Cheques are planned to be defunct by 2020 (?) IIRC. The Banks are not going to do anything in the meantime regarding changes. Why would they.

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I think that you often used to be able to draw on a cheque before it had actually cleared, which could leave you in an awkward situation if it eventually didn't. That gap has also been used for fraud. Perhaps they're trying to tighten up on that.

I've not heard a convincing argument as to why it can't clear immediately these days, what with everything being electronic. I assume it's just the banks talking nonsense in order to hang on to for a bit for no good reason.

I can't think of any reason either, to be honest. The cheque is scanned through that little machine on the counter which reads the unique number on it. Okay, I can see that an actual handwritten one may be fraudulent but how can a pre-printed one be? The issuing bank is obviously connected to the clearance system as it the one you are paying it into so surely if the details of the cheque don't match then it should be rejected there and then?

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One of my old bosses who was seriously tight used to do this to us. He was so tight he used to dry his teabags and reuse them many times. We never cottoned on until we one day had to make the tea ourselves.

Anyway firstly he would always give you a cheque on Friday, the cheque at the bottom would always be folded twice thus making the cheque non machine readable. Ontop of this Monday was a busy day so lunches were late. Late enough for the bank to be closed (it was cornwall) at 3pm. So we'd cash them in on a Tuesday. but because of the fold it would get left till the Friday then entered into your account......

Oh

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One of my old bosses who was seriously tight used to do this to us. He was so tight he used to dry his teabags and reuse them many times. We never cottoned on until we one day had to make the tea ourselves.

Anyway firstly he would always give you a cheque on Friday, the cheque at the bottom would always be folded twice thus making the cheque non machine readable. Ontop of this Monday was a busy day so lunches were late. Late enough for the bank to be closed (it was cornwall) at 3pm. So we'd cash them in on a Tuesday. but because of the fold it would get left till the Friday then entered into your account......

Oh

Didn't you try ironing them before paying them in?! I would have done.

I could never usually be bothered to wait 'til the bank was open then stand in a queue to pay just a cheque in so I often put them in an envelope with a pay-in slip and post through the banks letterbox. I've done this with various branches of Lloyds, Natwest, HSBC and Barclays over the years and the cheques always hit the account just as quickly (or slowly) as if I'd actually gone in and paid it over the counter.

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Sweden has managed to get it down to the same day...in this day & age, there isn't really a reason why quick clearance couldn't be adopted here...but as ccc says, cheques are being phased out, so they won't bother...

http://news.bbc.co.uk/1/hi/programmes/working_lunch/3815599.stm

My other half is from Sweden and she's staggered that people here use cheques so much as they are virtually unheard of there. Her dad had a cheque book back in the 80's and it proved to be a point of great discussion, apparently. Perhaps they've got clearance times to virtually zero due to having virtually zero checques in the system?

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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