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The Future of Cheques

From 30 October 2017, a new “next business day cheque clearing cycle” was introduced for all banks in the UK.

This will run alongside the existing “6 business days cheque clearing cycle”. The clearing cycle used will depend on which bank a cheque is deposited with, and by the method of deposit.

Over the remainder of the year we will introduce quicker and more convenient ways of depositing cheques. By the end of 2018, the current six business day clearing process will be withdrawn altogether and all cheques will be cleared on the next business day.

Faster access to deposited funds

Any cheques submitted via a ‘next business day’ cheque deposit method will be paid by 23:59, on the next business day (Mon-Fri, Bank Holidays excluded).

New method to deposit cheques

Under the new cheque clearing cycle you will still be able to deposit a cheque using all the methods you do today. However, a new, more convenient method will be introduced during July 2018:

However, two new, more convenient methods will be introduced:

  • Using your mobile device (through our existing banking app for clients using 'Business Internet Banking' or 'Online for Business')

Cheque Clearing Times

Six Business Days

6 Business Days cheque clearing cycle infographic.

Next Business Day

Next Business Day cheque clearing cycle infographic

*Subject to post payment fraud measures.

  • Where Mobile Devices App and Cheque Deposit are mentioned, these depositing services will be coming in 2018.

    What are the daily cut off times for each type of cheque submission?

    Method of submission

    Cut off time

    Method of submission

    Mobile device

    Cut off time

    21:59

    Method of submission

    Cheque Deposit Product

    Cut off time

    To be announced

    Method of submission

    Branch Counter

    Cut off time

    Branch opening hours

    Method of submission

    Immediate Deposit Machine

    Cut off time

    Branch opening hours

    Method of submission

    Bulk

    Cut off time

    This will depend on your courier collection times

    How can I deposit each type of cheque (Transaction type)?

    Mobile phone app

    Cheque Deposit

    Bulk Cheque Service

    Immediate Deposit Machine

    Counter in Branch

    Banker’s Drafts

    Mobile phone app

    Y

    Cheque Deposit

    Y

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Bank Giro Credits

    Mobile phone app

    N

    Cheque Deposit

    N

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Building Society Cheques

    Mobile phone app

    Y

    Cheque Deposit

    Y

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Cheques on non-standard paper

    Mobile phone app

    N

    Cheque Deposit

    N

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Cheques that meet APACS cheque standards

    Mobile phone app

    Y

    Cheque Deposit

    Y

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Dividend Cheques

    Mobile phone app

    Y

    Cheque Deposit

    Y

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Electronic Vouchers

    Mobile phone app

    N

    Cheque Deposit

    N

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Government Payable Orders

    Mobile phone app

    Y

    Cheque Deposit

    Y

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Postal Orders

    Mobile phone app

    Y

    Cheque Deposit

    Y

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Travellers Cheques (Sterling only)

    Mobile phone app

    N

    Cheque Deposit

    N

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    Warrants (Payment Instruments issued by HM Paymaster General)

    Mobile phone app

    Y

    Cheque Deposit

    Y

    Bulk Cheque Service

    To be Announced

    Immediate Deposit Machine

    To be Announced

    Counter in Branch

    To be Announced

    How long should I keep a paper cheque, and how do I dispose of it?

    If you pay in a cheque using our enhanced mobile phone app, keep the paper cheque until the funds show in your account. The paper cheque should then be disposed of in a secure way, for example, shredded or confidentially destroyed.

    Can I still stop a cheque?

    You will still be able to stop a cheque using the current process. The new faster cheque clearing times mean you have less time if you want to stop a cheque.

    Can I still get paper copies of cheques or credits sent to me?

    Under the new cheque clearing system, we will no longer provide original paper cheques or paper vouchers back to clients with their statements. This includes those clients using Head Office Collection Accounts (HOCA). This is because the cheque or voucher may have been deposited digitally, meaning the paper cheque did not enter the clearing system.

    We will continue to return paper cheques we receive, until paper clearing ends. We can provide images of cheques or credits if required on a case by case basis. For details about how to request these images, please email DigitalChequeImagingCB@bankofscotland.co.uk.

    Will my notifications of an unpaid cheque change?

    Some clients receive specific notifications when a cheque they’ve deposited is returned unpaid. The table below shows which unpaid notifications will be withdrawn:

    Type

    Information

    Type

    Early advice by fax or phone

    Information

    Refer to online banking to see when a cheque has been returned unpaid to your account

    Type

    Images with fax advices

    Information

    We’ll write to you with an image of the item

    Type

    Additional information notification

    Information

    We’ll contact individual customers about these arrangements over the next few months

    Will the Transaction Descriptions on my Statements change?

    Some of the transaction descriptions on your statements will change during 2018 as a result of the new methods available to deposit a cheque. We will post details here of these changes as soon as we have them available. For further questions, please contact: DigitalChequeImagingCB@bankofscotland.co.uk

    How will the new system protect cheques against fraud?

    Prevention of fraudulent cheque use is always a major consideration for Lloyds Bank, and with the introduction of ICS the Bank will continue to employ a range of controls to ensure that LBG and its clients are protected.

    Page last updated on 30 October 17

Available resources:

If you require more information about changes to cheque clearing, or would like to discuss your business banking options: