Im­age-based cheque clearance goes live

The Daily Telegraph - Your Money - - FRONT PAGE - So­phie Christie

An in­dus­try-wide, im­age-based cheque clear­ing sys­tem was rolled out this week, speed­ing up the cheque de­posit process. New soft­ware in­tro­duced in some banks and build­ing so­ci­eties on Mon­day, and across all providers by the sec­ond half of 2018, will al­low peo­ple to clear a cheque within 24 hours. Bar­clays and Lloyds have al­ready tested out imag­ing tech­nol­ogy, but cur­rently only their own cheques can be paid in. This UK-wide sys­tem will mean cheques from a dif­fer­ent bank can be cashed in.

At the mo­ment it can take up to six days for a cheque to be pro­cessed. The new im­age-based cheque clearance, how­ever, will take less time. Cus­tomers will still write pa­per cheques, but when they take th­ese to their bank, the cashier will take a pic­ture of the cheque that will then be ex­changed elec­tron­i­cally through the new sys­tem. Some cus­tomers will also be able to do this at home, us­ing a pic­ture tool on their bank­ing app, al­low­ing them to up­load an im­age.

Ini­tially, the process is likely to take as long as be­fore, be­cause not all banks are us­ing the new sys­tem, the Cheque and Credit Clear­ing Com­pany said. Over time, cheques will be cleared within 24 hours.

Tele­graph Money con­tacted Bri­tain’s big­gest banks to check whether they had plans to go live. A spokesman for San­tander said it was pi­lot­ing the ser­vice with a “small per­cent­age of cus­tomers” from the end of Oc­to­ber, with a wider roll-out in sum­mer 2018. Lloyds Bank­ing Group said that from this week, a “small num­ber” of Lloyds, Bank of Scot­land and Hal­i­fax cus­tomers would see faster clear­ing times.

Na­tion­wide con­firmed it was live with the new imag­ing sys­tem, while Royal Bank of Scot­land and NatWest will not in­tro­duce im­age-based clearance un­til the end of Jan­uary.

SharesMedi­u­mover­val­ued?Head­chastyle FameMedium&For­tuneHead­cha style

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.