Banking

Changes to the cheque clearing process this week will provide certainty and increased transparency, according to the UK payments association, APACS.

The changes, which will come into effect on Friday 30 November (Frankfurt: A0S9N7 - news) , are known as 2-4-6 and will apply to all cheques paid in to major banks and building societies. APACS has outlined two main benefits for customers increased certainty and improved clarity about clearing timescales.Firstly, customers can be sure that after six working days, the cheque will have cleared and they are protected from any loss if it should subsequently bounce. In addition, there are now maximum timescales for the day customers can expect to earn interest or offset overdraft interest no later than two working days after paying in a cheque. The money should also be available for withdrawal no later than four working days after paying in a cheque.

Angela Thomas, managing director of the Cheque and Credit Clearing Company the body that handles the clearing system in Great Britain, said: Although cheque use has fallen over the last few years, cheques remain important for certain customers in certain situations. Whether its a small business or someone selling a car, there are many occasions where cheques still get handed over. These changes will really benefit anyone paying in a cheque, offering them certainty and clarity on when the money has cleared and giving real peace of mind.