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 By the end of 2018, the current six business day clearing process will be withdrawn altogether and all cheques will be cleared on the next business day.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
Next Business Day
*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