Waiting for a cheque to clear can be annoying among other things, but that six day delay could be a thing of the past sooner than you think.
You’ll be happy to know that the UK is to adopt an image-based cheque clearing system from 30 October 2017. The Cheque and Credit Clearing Company have announced that waiting for five to six working days to get money through your accounts will be cut down to just one day.
Initially, only a selected few banks and building societies will be able to do this, but the rest of the industry will be able to offer the service by the second half of 2018.
So how does it work? All you have to do is take a picture of the cheque you’ve written, and you’ll be ready to go - this will then be exchanged between banks electronically.
The way the current method using the paper-based clearing system works is by having the actual paper cheque transported around the country to be cleared.
If you’re not quite ready to go digital with your cheques, no need to worry - customers will be able to write cheques in the same way and will still be able to deposit cheques as they do today.
James Radford, chief executive of the Cheque and Credit Clearing Company, said: “These changes will put cheques firmly in the 21st century, delivering real and important benefits for the many individuals, charities and businesses that regularly use cheques.
“Not only will cheques clear faster but banks and building societies may offer their customers the option of paying in an image of a cheque rather than the paper cheque itself."