General > General Technical Chat

Cheques being phased out in Australia by 2030

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bdunham7:

--- Quote from: Halcyon on October 08, 2023, 05:59:13 am ---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 ---

The US and most people here are not "reliant" on paper checks, but unfortunately they are still widely used.  Less than 10% of my bills need to be paid with a paper check, but unfortunately that isn't just outfits like the landscapers--we have two doctors offices that won't accept anything else.  In addition, a lot of elderly people still write checks and balance their checkbooks manually.

This has led to widespread fraud recently where thieves are intercepting checks in the mail and altering them or using the account numbers.  IMHO, this is 99% the fault of banks for not implementing consumer positive pay.  Mailing paper instruments that have your checking account numbers in plain digits right on the front is a insane risk in a modern world where it is so easy to implement countermeasures.  Even if I use online bill pay, if my payee is not setup for electronic payments the bank mails them a printed check.  One of my banks withdraws the money from my account and sends them a bank check without my account information on it--and I'll be they have positive pay set up on that.  The other two send a printed check that has all of my account info on it anyway.   :palm:

 

DimitriP:
VISA (matercard AMEX and friends) welcome the obsolesence  of any physical form of payment that doesn't involve ...VISA (and friends).
Goldman Sachs doesn't mind that either ( https://www.apple.com/newsroom/2021/08/apple-card-and-goldman-ranked-highest-in-customer-satisfaction-in-jd-power-study/)

2% to 5% of a very large amount is still a very large amount.
With a cheque you can pay without anyone getting the 2% to 5% "hit".

Of course if you are "VISA" or an online payment processor , you want checques over and done with, since you are collecting 2% to %5 on the entire planet's transactions with a realtime digital trail.
(not to mention interest collected on credit cards, because you want those "reward points" don't you ?

As for NZ...it's a liitle larger than the City of Los Angeles
NZ ~ 5M , Los Angeles ~ 3.8M  ( county of Los Angeles is ~9.8 M)
Compared to the planet, it's what in some circles called " a small sample size". 
Apologies to all NZ readers. It's just the numbers :)

As for AU...."Non-cash payments account for most of the value of payments in the Australian economy. On average, in 2022 non-cash payments worth around $280 billion were made each business day...".
What's 2-5% of $280B with a B ?   (https://www.rba.gov.au/payments-and-infrastructure/payments-system.html)
Yeah!

ataradov:
You need to look at the number of transactions performed with the checks today, not the total market for payments. This number would be their incentive to kill the checks. If even in the presence of checks today people pay using VISA, this is a clear vote that VISA fees make up for convenience.

For example, when I paid the passport application fees, I'd happily pay 10% more to just be able to pay with the card.

DavidAlfa:
Cheques looked extremely outdated even 20 years ago when online banking was already a thing.
I only had a cheque once, it was a PITA to cash, my bank wanted a fee because it was issued by a different entity, had to go to the f** end of  the city, get the cash, go back to my bank and deposit it.
To me it's just a messy way to transfer money!

bdunham7:

--- Quote from: DimitriP on October 08, 2023, 04:29:56 pm ---2% to 5% of a very large amount is still a very large amount.
With a cheque you can pay without anyone getting the 2% to 5% "hit".

--- End quote ---

There are many different electronic payment systems that don't go through VISA, MC or the like and have minimal or no fees (to the user in any case).  ACH, Zelle, etc.  Even wire transfers are cheap to free at many banks.

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