The future of cheques

From 30 October 2017, a new “next business day cheque clearing cycle” was introduced for all banks in the UK. This will run alongside the existing “6 business days cheque clearing cycle”. The clearing cycle used will depend on which bank a cheque is deposited with, and by the method of deposit.

Over the remainder of the year we will introduce quicker and more convenient ways of depositing cheques. By the end of 2018, the current six business day clearing process will be withdrawn altogether and all cheques will be cleared on the next business day.

A quicker clearing time also means money could leave your account earlier if you have written a cheque. You should always ensure you have sufficient funds in your account prior to issuing a cheque.

Faster access to deposited funds

Any cheques submitted via a ‘next business day’ cheque deposit method will be paid by 23:59, on the next business day (Mon-Fri, Bank Holidays excluded).

New method to deposit cheques

Under the new cheque clearing cycle you will still be able to deposit a cheque using all the methods you do today. However, a new, more convenient method will be introduced during July 2018

  • Using your mobile devices (through our existing banking app for customers using ‘Business Internet Banking’ or ‘Online for Business’)

From 30 October 2017, until the 6 business day cheque clearing cycle is removed towards the end of 2018, both clearing cycles will be in operation. You should anticipate money from cheques you write leaving your account on the next business day; and money being cleared from cheques you deposit within 6 business days. You should always ensure you have sufficient funds in your account prior to issuing a cheque.

Six Business Days

Six business days infographic

Next Business Day

Next business day infographic

*Subject to post payment fraud measures.

What are the daily cut off times for each type of cheque submission?

Method of submission

Cut off time

Mobile Devices (during July 2018)

21:59

Branch Counter

Branch opening hours

Immediate Deposit Machine

Branch opening hours

Bulk

This will depend on your courier collection times

Mobile Devices (during July 2018)

Cut off time

21:59

Branch Counter

Cut off time

Branch opening hours

Immediate Deposit Machine

Cut off time

Branch opening hours

Bulk

Cut off time

This will depend on your courier collection times

How can I deposit each type of cheque (Transaction type)?

Mobile phone app

Bulk Cheque Service

Immediate Deposit Machine

Counter in Branch

Banker's Drafts

Y

Y

Y

Y

Bank Giro Credits

N

Y

N

Y

Building Society Cheques

Y

Y

Y

Y

Cheques on non-standard paper

N

Y

N

Y

Cheques that meet APACS cheque standards

Y

Y

Y

Y

Dividend Cheques

Y

Y

Y

Y

Electronic Vouchers

N

N

N

Y

Government Payable Orders

Y

Y

Y

Y

Postal Orders

Y

Y

Y

Y

Travellers Cheques (Sterling only)

N

Y

N

Y

Warrants (Payment instruments issued by HM Paymaster General)

Y

Y

N

Y

Banker's Drafts

Mobile phone app

Y

Bulk Cheque Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Bank Giro Credits

Mobile phone app

N

Bulk Cheque Service

Y

Immediate Deposit Machine

N

Counter in Branch

Y

Building Society Cheques

Mobile phone app

Y

Bulk Cheque Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Cheques on non-standard paper

Mobile phone app

N

Bulk Cheque Service

Y

Immediate Deposit Machine

N

Counter in Branch

Y

Cheques that meet APACS cheque standards

Mobile phone app

Y

Bulk Cheque Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Dividend Cheques

Mobile phone app

Y

Bulk Cheque Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Electronic Vouchers

Mobile phone app

N

Bulk Cheque Service

N

Immediate Deposit Machine

N

Counter in Branch

Y

Government Payable Orders

Mobile phone app

Y

Bulk Cheque Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Postal Orders

Mobile phone app

Y

Bulk Cheque Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Travellers Cheques (Sterling only)

Mobile phone app

N

Bulk Cheque Service

Y

Immediate Deposit Machine

N

Counter in Branch

Y

Warrants (Payment instruments issued by HM Paymaster General)

Mobile phone app

Y

Bulk Cheque Service

Y

Immediate Deposit Machine

N

Counter in Branch

Y

How long should I keep a paper cheque, and how do I dispose of it?

If you pay in a cheque using our enhanced mobile phone app, keep the paper cheque until the funds show in your account. The paper cheque should then be disposed of in a secure way, for example, shredded or confidentially destroyed..

Can I still stop a cheque?

You will still be able to stop a cheque using the current process. The new faster cheque clearing times mean you have less time if you want to stop a cheque.

Can I still get copies of paper cheques or credits sent to me?

Under the new cheque clearing system, we will no longer provide original paper cheques or paper vouchers back to clients with their statements. This includes those clients using Head Office Collection Accounts (HOCA). This is because the cheque or voucher may have been deposited digitally, meaning the paper cheque did not enter the clearing system.

We will continue to return paper cheques we receive, until paper clearing ends. We can provide images of cheques or credits if required on a case by case basis. For details about how to request these images, please email DigitalChequeImagingCB@lloydsbanking.com.

Will my notifications of an unpaid cheque change?

Some clients receive specific notifications when a cheque they’ve deposited is returned unpaid. The table below shows which unpaid notifications will be withdrawn:

 

Type
Information
Early advice by fax or phone
Refer to online banking to see when a cheque has been returned unpaid to your account
Images with fax advices
We'll write to you with an image of the item
Additional information notification
We'll contact individual customers about these arrangements over the next few months

 

Will the transaction descriptions on my statements change?

Some of the transaction descriptions on your statements will change during 2018 as a result of the new methods available to deposit a cheque. We will post details here of these changes as soon as we have them available. For further questions, please contact: DigitalChequeImagingCB@lloydsbanking.com

How will the new system protect cheques against fraud?

Prevention of fraudulent cheque use is always a major consideration for Lloyds Bank, and with the introduction of the Image Clearing System (ICS) the Bank will continue to employ a range of controls to ensure that LBG and its clients are protected.

Icon information

Available resources

If you require more information about changes to cheque clearing, or would like to discuss your business banking options:

Opens in new window (PDF)

Email: DigitalChequeImagingCB@lloydsbanking.com

Contact your Business Management team in the usual way

The Cheque and Credit Clearing Company (C&CCC) are an independent company who are leading this change on behalf of HM Treasury. You can visit their website at: https://www.chequeandcredit.co.uk/

Additionally, C&CCC have uploaded a number of short video tutorials about the improvements to cheque clearing. These can be viewed at: https://www.youtube.com/user/chequeandcredit