Discussion
In this day and age, what is the point of a cheque? Why is this method of payment still around?
The reason I ask is because I have to make a home insurance claim. The insurance company wants to send payment via cheque. This is a massive inconvenience as I have to waste time and fuel driving to my nearest bank (which is nowhere near me because they've decided to close all the branches), and then find parking, which is either non existent or will have to be paid for. Who has the time to faff about with this outdated system?!
I pay my insurance via direct debit/bacs so I don't see why I can't be transferred payment to my bank account?
And it's not the first time I've encountered this. Many companies will issue payments and refunds by cheque.
Can I insist on a bank transfer?
The reason I ask is because I have to make a home insurance claim. The insurance company wants to send payment via cheque. This is a massive inconvenience as I have to waste time and fuel driving to my nearest bank (which is nowhere near me because they've decided to close all the branches), and then find parking, which is either non existent or will have to be paid for. Who has the time to faff about with this outdated system?!
I pay my insurance via direct debit/bacs so I don't see why I can't be transferred payment to my bank account?
And it's not the first time I've encountered this. Many companies will issue payments and refunds by cheque.
Can I insist on a bank transfer?
Does my head in... as do the DVLA for "road" tax rebates, HMRC for tax rebates... the whole government are at it.
Like you, find it a pain, unless I want to give up work time, I have to go into the city on a Saturday morning, and hope the cheque is still pristine as there's no counter service.
Some of the banks are promising "cheque imaging" later in 2018... but that still does make using them a good idea.
My theory is two fold. 1) Some of these organisations have contacts for cheque printing, or processes/software that only knows how to do it. and 2) That the delay in getting cashed works to their favour.
Since they usually can refund money to cards and DD, I'd be surprised if they couldn't pay this way, but I suspect the above two combine to mean they don't really want to.
Like you, find it a pain, unless I want to give up work time, I have to go into the city on a Saturday morning, and hope the cheque is still pristine as there's no counter service.
Some of the banks are promising "cheque imaging" later in 2018... but that still does make using them a good idea.
My theory is two fold. 1) Some of these organisations have contacts for cheque printing, or processes/software that only knows how to do it. and 2) That the delay in getting cashed works to their favour.
Since they usually can refund money to cards and DD, I'd be surprised if they couldn't pay this way, but I suspect the above two combine to mean they don't really want to.
Cash flow.
I imagine insurance companies issue hundreds of thousands of pounds worth of cheques every day, if not more. So by not making an immediate bank transfer they save a couple of days by sending by post. Then another 3 or 4 days before the cheque clears. Not to mention the days or even weeks some people might take before paying it in. All of which adds up to a rather considerable sum of (a) cash in their bank, and (b) accrued interest.
It's a relatively minor inconvenience for the recipient, and I imagine most are probably just relieved to get the cheque. Whereas changing over to an immediate bank transfer would hit the insurance company far more severely.
I imagine insurance companies issue hundreds of thousands of pounds worth of cheques every day, if not more. So by not making an immediate bank transfer they save a couple of days by sending by post. Then another 3 or 4 days before the cheque clears. Not to mention the days or even weeks some people might take before paying it in. All of which adds up to a rather considerable sum of (a) cash in their bank, and (b) accrued interest.
It's a relatively minor inconvenience for the recipient, and I imagine most are probably just relieved to get the cheque. Whereas changing over to an immediate bank transfer would hit the insurance company far more severely.
hooblah said:
In this day and age, what is the point of a cheque? Why is this method of payment still around?
The reason I ask is because I have to make a home insurance claim. The insurance company wants to send payment via cheque. This is a massive inconvenience as I have to waste time and fuel driving to my nearest bank (which is nowhere near me because they've decided to close all the branches), and then find parking, which is either non existent or will have to be paid for. Who has the time to faff about with this outdated system?!
I pay my insurance via direct debit/bacs so I don't see why I can't be transferred payment to my bank account?
And it's not the first time I've encountered this. Many companies will issue payments and refunds by cheque.
Can I insist on a bank transfer?
It's hard to disagree with you really. I was a involved in a minor prang which resulted in my car being written off on Sunday, the other parties insurers rang me and agreed a payout Monday and I had received the money by transfer Thursday - this is how it should be!The reason I ask is because I have to make a home insurance claim. The insurance company wants to send payment via cheque. This is a massive inconvenience as I have to waste time and fuel driving to my nearest bank (which is nowhere near me because they've decided to close all the branches), and then find parking, which is either non existent or will have to be paid for. Who has the time to faff about with this outdated system?!
I pay my insurance via direct debit/bacs so I don't see why I can't be transferred payment to my bank account?
And it's not the first time I've encountered this. Many companies will issue payments and refunds by cheque.
Can I insist on a bank transfer?
hooblah said:
In this day and age, what is the point of a cheque? Why is this method of payment still around?
If you don't like 'em, don't use 'em.I've signed two today. Well, co-signed 'em. They're paying from the Parish Council's account, and it's a damn sight easier for the clerk to get two councillors to sign a cheque than it is for everybody to be together somewhere with internet to make an online payment.
hooblah said:
The reason I ask is because I have to make a home insurance claim. The insurance company wants to send payment via cheque. This is a massive inconvenience as I have to waste time and fuel driving to my nearest bank
So post it to the bank, or pay it in via your local post office.hooblah said:
Who has the time to faff about with this outdated system?!
So why choose to do it?hooblah said:
Can I insist on a bank transfer?
No. But you've got another question to ask next time you're phoning about for insurance.TooMany2cvs said:
hooblah said:
In this day and age, what is the point of a cheque? Why is this method of payment still around?
If you don't like 'em, don't use 'em.I've signed two today. Well, co-signed 'em. They're paying from the Parish Council's account, and it's a damn sight easier for the clerk to get two councillors to sign a cheque than it is for everybody to be together somewhere with internet to make an online payment.
hooblah said:
The reason I ask is because I have to make a home insurance claim. The insurance company wants to send payment via cheque. This is a massive inconvenience as I have to waste time and fuel driving to my nearest bank
So post it to the bank, or pay it in via your local post office.hooblah said:
Who has the time to faff about with this outdated system?!
So why choose to do it?hooblah said:
Can I insist on a bank transfer?
No. But you've got another question to ask next time you're phoning about for insurance.2. Online banking only needs one person.
3. Same thing. It costs me time and money to post or take it somewhere.
4. Refer to point 1.
5. I don't even.
I would guess there's also a whole load of cheques that go uncashed, a lot of people will have a threshold where it's just not worth the trip to the bank, this figure will be quite different for a lot of people. 
I know of someone that has a refund cheque for £0.01 from HMRC framed on the wall.
I know of someone that has a refund cheque for £0.01 from HMRC framed on the wall.
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