The Cheque and Credit Clearing Company (C&CCC) has today announced details of the launch of an industry-wide image-based cheque clearing system that will speed up cheque processing significantly for customers across the UK.

The new system will go live with some banks and building societies from 30 October 2017. Following that, at some stage in the second half of 2018, all of the UK’s banks and building societies will clear all cheques via the image-based system to the faster timescale, according to the C&CCC.

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 11.59pm on the following weekday (excluding bank holidays) at the latest, with many banks and building societies likely to allow customers to access their funds earlier. This means that cheque clearing times will be reduced from ‘six weekdays’ to ‘next weekday’.

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.

However, cheque imaging is being introduced to provide customers with greater 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 – y using a secure mobile banking app on their smartphone or tablet , rather than having to go to a bank to pay it in.

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 do not want to.

James Radford, CEO of the Cheque and Credit Clearing Company, said: “These changes will put cheques firmly in the 21st century, delivering real and important benefits for the many individuals, charities and businesses that regularly use cheques. Not only will cheques clear faster but banks and building societies may offer their customers the option of paying in an image of a cheque rather than the paper cheque itself.”

Back in 2014, Barclays became the first bank to pilot cheque imaging, allowing its customers to deposit cheques digitally.

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