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The future of cheques

A new, next business day cheque clearing cycle, known as the ‘Image Clearing System’ (ICS), was introduced for all banks in the UK on 30 October 2017. This has been running alongside the existing six business day cheque clearing cycle. The clearing cycle used depends on which bank a cheque is deposited with, and by the method of deposit.

The six business day cheque clearing cycle is due to be withdrawn by the end of 2018. When the six business day cheque clearing cycle ceases, all cheques will be cleared on the next business day using the Image Clearing System. The quicker clearing time 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. A new, more convenient method was also introduced on 10 July 2018.

Clients using ‘Business Internet Banking’ or ‘Online for Business’ can now pay in cheques using our Business Mobile Banking AppPay cheques in via the Business Mobile Banking App.

Cheque Clearing Times

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 device

21:59

Branch Counter

Branch opening hours

Immediate Deposit Machine

Branch opening hours

Bulk Cheque Processing Service

Cheques must reach the clearing centre by 19.30

Mobile device

Cut off time

21:59

Branch Counter

Cut off time

Branch opening hours

Immediate Deposit Machine

Cut off time

Branch opening hours

Bulk Cheque Processing Service

Cut off time

Cheques must reach the clearing centre by 19.30

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

Mobile phone app

Bulk Cheque Processing 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 Processing Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Bank Giro Credits

Mobile phone app

N

Bulk Cheque Processing Service

Y

Immediate Deposit Machine

N

Counter in Branch

Y

Building Society Cheques

Mobile phone app

Y

Bulk Cheque Processing Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Cheques on non-standard paper

Mobile phone app

N

Bulk Cheque Processing Service

Y

Immediate Deposit Machine

N

Counter in Branch

Y

Cheques that meet APACS cheque standards

Mobile phone app

Y

Bulk Cheque Processing Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Dividend Cheques

Mobile phone app

Y

Bulk Cheque Processing Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Electronic Vouchers

Mobile phone app

N

Bulk Cheque Processing Service

N

Immediate Deposit Machine

N

Counter in Branch

Y

Government Payable Orders

Mobile phone app

Y

Bulk Cheque Processing Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Postal Orders

Mobile phone app

Y

Bulk Cheque Processing Service

Y

Immediate Deposit Machine

Y

Counter in Branch

Y

Travellers Cheques (Sterling only)

Mobile phone app

N

Bulk Cheque Processing Service

Y

Immediate Deposit Machine

N

Counter in Branch

Y

Warrants (Payment instruments issued by HM Paymaster General)

Mobile phone app

Y

Bulk Cheque Processing 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 faster cheque clearing times mean you have less time if you want to stop a cheque. The cheque must be stopped before it’s deposited by the payee.

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

Under the new cheque clearing system, we 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.

If you need a copy of a cheque, please email LloydsBankingGroupChequeCopies@lloydsbanking.comEmail for a copy of a cheque.

Will my notifications of an unpaid cheque change?

Some clients received specific email / phone / fax notifications when a cheque they deposited was returned unpaid. Going forward, you will be able to see detail of unpaid cheques via your online banking statement (description ‘UNPAID CHEQUE’). We’ll also write to you with an image of the item.

Will the Transaction Descriptions on my Statements change?

Some of the transaction descriptions on your statements will change as a result of the new methods available to deposit a cheque. For example, ‘BGC’ deposit types will now appear as ‘DEP’ and represented cheques will appear as ‘TFR’ instead of ‘PAY’.

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 the Bank and its clients are protected.

Icon information

Available resources

The Cheque and Credit Clearing Company (C&CCC) are an independent company who are leading the changes to cheque clearing on behalf of HM Treasury. You can visit their website at: www.chequeandcredit.co.ukOpens in a new window, with further information for businesses at: www.chequeandcredit.co.uk/cheque-users/businessesOpens in a new window

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