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Cheques being phased out in Australia by 2030

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tggzzz:

--- Quote from: Halcyon on October 08, 2023, 05:59:13 am ---This was something a few of us were discussing over on the EEVblog IRC channel today.

I learned that the Australian government will be phasing out the use of cheques by no later than 2030. Which to me is still quite late considering the use of cheques in Australia is almost zero today.
Most Australian banks haven't offered cheques for most accounts for some time, however they will still process cheques that are sent to them (at least for now).

In my experience, I've never owned a cheque book and I can count on one hand the number of times I've had to cash a cheque. Same goes for writing cheques, I think I last wrote one in 2002, as the company I worked for at the time still used them.

Keen to hear about other's experiences around the world. Correct me if I'm wrong but the US are still fairly reliant on cheques as a form of payment?

--- End quote ---

If cheques are becoming unused, then it costs banks very little to keep the processes going. Whereas once they might have to have, say, 1000 staff, now they only need one. The banks make enough money that they should be required to deal with a few "corner cases".

There are use-cases that strongly indicate using a cheque for random one-off payments.

If a recipient doesn't want to give out their bank account details in an email or similar.
If the sender cannot use electronic banking, for any of many reasons.
If the monies are a surprise gift.
Grandparents giving birthday presents are a prime example of the last two.

Such considerations caused UK politicians to not allow banks to cease using cheques. Pressure from constituents is a useful tool.

magic:
1. Seems related to the utter insecurity of Direct Debit, at least in the US. As far as I understand, anyone who knows your name and account number can simply take your money by swearing that you authorized it :palm:

I'm not aware of such fraud happening in Poland (which seems to strongly imply that it is simply impossible :P) and people used to routinely exchange bank account numbers with strangers to pay for stuff ordered through auction sites or classifieds. Nowadays most of those websites use various "instant electronic payment" services to streamline the process, so it happens less.

2. Cash can be deposited into any account at the receiving bank's office or any post office here. A transfer can be ordered at the sending bank's office.

3. If you don't know the recipient's account number and don't want to ask you are stuck with cash.

jfiresto:

--- Quote from: magic on October 08, 2023, 09:12:38 am ---1. Seems related to the utter insecurity of Direct Debit, at least in the US. As far as I understand, anyone who knows your name and account number can simply take your money by swearing that you authorized it....
--- End quote ---

I was told you have to be a trusted payee to pull money out of an account, at least within the ACH system.


--- Quote ---I'm not aware of such fraud happening in Poland (which seems to strongly imply that it is simply impossible :P)....
--- End quote ---

I can not speak for Poland, but IIRC (I have only done it once in the last 30 years), a payer here, can within five or was it six weeks, simply tell their bank to reverse the debit. That appears to be a sufficient threat to discourage the fraud. The right of time-limited, unconditional reversal was a condition the banks had to agree to to get rid of paper checks.

jpanhalt:
I still use checks.  They give one a little control over monolithic entities like pubic services with no customer service.  They are also safer than plastic and autopay.  Checks at least have a recognizable signature; whereas, the virtual "signatures" on touch pads are to me unrecognizable. 

As for old checks, yes banks can refuse to take them on deposit after several months as stated.  However it becomes somewhat optional at the short end of that period. (I have never tested the 6-month limit.)  In the past year, a "lost check" arrived, and it was a little past the printed expiration date.  My bank suggested the simplest solution was to deposit it and see whether it cleared.  It did.

Also, an expired check is not lost money.  The debt for which the check was written still exists, at least in the US.

tom66:
I visited a business recently that only took cash or cheque in the UK.  In the end we agreed to use the bank account numbers printed on the cheque to transfer the money electronically, for some reason that had not been apparent to the owner as a possibility.

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