Image-based system will cut UK cheque processing time to one day

The Cheque and Credit Clearing Company (C&CCC) announced on Wednesday that a new image-based cheque clearing system is to be introduced from 30 October at some banks and building societies in the UK. By a date still to be confirmed in the second half of 2018, all UK banks and building societies will use the new system to clear cheques, it said.

James Radford, C&CCC chief executive, said the move would "put cheques firmly in the 21st century".

"For customers, the new system will mean that if they pay in a cheque on a weekday they will be able to withdraw the funds by 23.59 on the next weekday (excluding bank holidays) at the latest, with many banks and building societies likely to allow customers to access their funds earlier than this," the C&CCC said. "Introduction of the new process will also mean that when a cheque is paid in, not only will the recipient receive the money in their account more quickly; the money will leave the account of the person or business that wrote the cheque to the faster timescale too."

C&CCC said the new image-based clearing system could spur new ways for consumers and businesses to pay in cheques to their accounts remotely.

"Cheque imaging is also about providing more choice, and it means that some banks and building societies may offer their customers the additional option of paying-in an image of the cheque – by using a secure mobile banking app on their smartphone or tablet – rather than having to go to a bank to pay it in," it said. "Although this is likely to be a more convenient method for some, customers will still have the option of paying in cheques in exactly the same way as they do today, so there is absolutely no requirement for customers to use a smartphone or tablet to pay-in a cheque if they don’t want to."