April 21st, 2017.

Details have been announced for the introduction of a faster, industry-wide, image-based cheque clearing system.

The organisation behind the cheque clearing system, the Cheque and Credit Clearing Company announced that the new system will go live with some banks and building societies from the 30th of October 2017. Then, during 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.

This will be welcome news for suppliers whose customers prefer to pay by this method as cheques deposited on a weekday, will be cleared by 23.59pm the next working day at the latest. Cheques will still be written and banked as they are today.

The introduction of cheque imaging required a legislative change via the Small Business, Enterprise and Employment Act 2015. Further information is available HERE.