Cheque imaging will breathe new life into cheque payments

Cheque imaging will breathe new life into cheque payments

If you think that cheques are no longer part of everyday business life, we’re afraid that’s not quite the case just yet! With the new cheque clearing system which has been rolled out by many banks (and will be implemented by all banks by 31st December), cheques are set to make a comeback and your business needs to be ready.

In 2013, an industry initiative was agreed by all the high street banks to implement the Image Clearing System. The image-based cheque clearing system will speed up cheque processing, significantly reducing cheque clearing time from six days to one. This means that cheques could regain their popularity as a payment method as businesses will no longer have an inconvenient period of waiting for the money to clear.

The new cheque clearing process is as follows:

  • A cheque is written and given to the payee in the regular way
  • The payee deposits the cheque into their account
  • The bank carries out security checks and then creates an image of the cheque
  • Some banks will allow account holders to create the image of the cheque themselves, using a mobile banking app, which means there is no need to go to the bank in person
  • Businesses may be entitled to a cheque scanner which is linked to online banking
  • The bank sends the image of the cheque securely though the image clearing system for sorting and processing
  • The image is then sent onto the bank of the person who wrote the cheque for payment
  • The bank carries out security checks and makes sure that the cheque has not been previously paid in to an account. Then it checks that there are sufficient funds to pay the cheque
  • If all of the above quota is met, then the money is paid into the payee’s account

Cheques may have been in decline, but the faster clearing time looks set to make them popular again. Particularly with the added security checks which could deter and prevent cheque fraud.

Start cheque printing securely before the new imaging clearing system has been fully rolled out. Hague can provide you with cheques that exceed all the design and security standards laid out by the UK’s Cheque and Credit Clearing Company (C&CCC). Combining our security expertise with our deep understanding of the market will ensure you get the best end-to-end service that reflects your use of cheques.

Let us know your requirements and we can recommend the best way to simplify your use of cheques. Enquire now and a member of our team will get in touch to set up a free consultation.