There are many benefits to cheque imaging for both the bank and the consumer. Here we list what we believe to be five of the most important:
1. Cheques to be cleared more quickly
By enabling banks to send photos of cheques instead of the original paper cheque, means your customers can get their cheques cleared much quicker. The speed of which a cheque can now be cashed means that the method of payment could potentially become faster than that of BACS and of standard credit and debit card schemes.
2. Types of cheque fraud to be eliminated
Cheque imaging provides new opportunities to combat fraud and tackle security threats that currently affect cheque users. Due to reducing the time lag between when a cheque is written and money being moved between accounts, cheque imaging helps eliminate types of cheque fraud that could take place within this time. Furthermore, just like what happens with card payments, banks will be able to contact the customer if they detect any suspicious behaviour regarding cheque imaging.
3. Less cheques to be lost
Converting the paper cheque into a digital image also eliminates the risk of a cheque being lost whilst in transit between banks, mitigating the possibility of human error in the current system that sees a percentage of cheques go missing each year.
4. Cheques orders to increase
The act of using a smartphone to cash in a cheque could also engage the younger population that have been blindsided by the perception that the only method of payment is through their bank card. Further to the fact that paying by cheque could be faster than paying by other means, this could spark a huge increase in your cheque orders.
5. New markets to be explored
Many customers prefer not to receive payment through cheques due to living in fairly rural locations and being a distance away from their bank branch. Now, with the introduction of cheque imaging, a much larger proportion of the population will be able to use this method of payment with ease and will not be limited by receiving payment through BACS or card payment. This therefore offers the possibility for you and your customers to potentially explore other markets that would have previously been untouched.
How will this affect you?
For organisations selling cheques, it is important that you are aware of the benefits to cheque imaging. The decrease of the clearing process of 6 days down to 2 is a huge reduction and may even rival the speed of paying by card or BACS. As a result, there may be a rapid increase in cheque orders across the UK.
UK banks will need to re-evaluate their current clearing process which is why we have been in discussion with the C&CCC to understand how we can help with the introduction of cheque imaging.
If you have any queries about the introduction of cheque imaging, then please don’t hesitate to contact one of our team and we will be sure to answer any of your questions.