WHAT IS CHEQUE IMAGING
Almost half a billion cheques were written in 2016, it is vital that the UK’s cheque clearing process is robust, reliable and secure. To ensure that the future of the cheque is protected for as long as customers want to use them, the Cheque and Credit Clearing Company (C&CCC) is introducing a new and quicker way of clearing cheques with cheque imaging
Known as the Image Clearing System (ICS), the new method will revolutionise how cheques are processed in the UK. It will mean that cheques will be cleared using a digital image of the cheque rather than via the current paper-based system reducing the need to transport cheques to a central clearing facility.
The new system will go live with some banks and building societies from 30 October 2017. 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. Over time, increasing numbers of cheques will be cleared using the ICS and more customers will benefit from the faster time scales, until such time next year when all cheques will clear the day after presentment.
A result of the ICS launch is faster cheque clearing, meaning cheque recipients will see the money appear in their account quicker. Customers will still write paper cheques and give them to the recipient as they do now. However, cheque imaging provides more choice and it means that corporate organisations, banks and building societies can use technology from Solchar to simplify, streamline and augment their existing payment process.