The start of the phased roll-out of a new, image-based cheque clearing system that will speed up cheque processing significantly for customers across the UK began yesterday, 30th October 2017.

Low volume start

Initially, the volume of cheques going through the new system will be small and the vast majority of customers will not notice any change to how quickly their cheques clear. However, over time, increasing numbers of cheques will be cleared using the new system and more and more customers will benefit from the faster timescale. Then, at some stage in the summer of 2018, the Cheque & Credit Clearing Company believe that “all of the UK’s banks and building societies will clear all cheques via the Image Clearing System to the faster timescale.”

Until then, two clearing systems will operate in parallel, which means that some cheques that customers write or pay in will be cleared more quickly via the Image Clearing System, and some will clear to the existing, six weekday timescale through the current, paper-based system. Banks and building societies will be advising their customers of their individual roll-out plans as appropriate.

Cheques will clear faster

One of the main benefits of an image-based system is that the cheque clearing process will be speeded up. It means that if a customer pays in a cheque on a weekday (Monday to Friday) and it is cleared via the new system, then they will be able to withdraw the funds by 23.59 on the next weekday (excluding bank holidays) at the latest, see Cheque Checker Tool result for 31 Octoberr 2017:

Source & Copyright©2017 - Cheque and Credit Clearing Company

N.B. The Cheque and Credit Clearing Company, are keen to stress that, “This tool uses the industry-wide maximum time limits that exist for each of the above stages in the cheque clearing process. Banks and building societies will compete to offer shorter timescales for interest and withdrawal so your bank or building society may beat these guaranteed time limits. The way you pay in your cheque and the type of account you pay into will also affect how quickly your cheque clears. Withdrawal times for savings accounts are longer and withdrawals can only be made if you have an account that allows you to make them. Make sure you always use an account best suited to your needs.”

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CTMfile take: The C&CCC state on their web-site that, “With the introduction of the Image Clearing System and the advent of regulation by the PSR, the C&CCC hopes it has secured the brightest of all futures for the cheque.” But, although the cheque is unlikely to disappear, the future of the the cheque is not bright as usage has been declining at 10%+/annum for years.