From Cheques to Clicks
The use of cheques has decreased significantly over the past decade as electronic payment methods have accounted for a growing share of transactions.
Whilst cheques are still accepted by businesses and payees, they are increasingly seen as a laborious way to receive payments. With the widespread phasing out of paper-related processes across industries, which has only accelerated under the effects of COVID-19, the Reserve Bank of Australia’s Governor Philip Lowe says cheques will soon become a thing of the past.
Cheque usage continues to rapidly decline across the globe and only continues to lessen over the years. The reason for this is common for all cheque users: cheques are becoming a barrier to effective payment in a world of instant global funds transfers, BPAY, contactless payment and, now, electronic wallets.
Electronic payment methods like direct debit and credit, BPAY and electronic funds transfers are generally less costly and always more efficient. They also allow businesses to regain control of their cash flow, help streamline payments and reporting systems, and are considered more secure than cheques.
In line with the Australian banking industry’s predictions on the discontinuance of cheques, we wanted share a few benefits of beginning to take action now, and reducing your reliance on cheques in your daily banking and business dealings:
- Improved cash flow management and faster reconciliation
The time taken to process cheques (a minimum clearance period of 3 days) can often be the cause of payment delays. Payments made via electronic funds transfer (EFT), BPAY, or real time gross settlement (RTGS) allow for quicker and more efficient settlement of transactions.
- Reduced risk of fraud and assurance of reliable payment
Cheques can be stopped, returned or issued in bad faith. This is often to the disadvantage of a cheque beneficiary. Unfortunately, cheques may also be subject to fraud in cases of lost, stolen, tampered and incorrectly issued cheques.
Our team is here to assist you with any enquiries you may have about switching your cheque book for a faster and more convenient online solution. We encourage you to reach out to your Branch or Relationship Manager, or alternatively contact our online customer service team via email, email@example.com.
Together, we are able to reduce reliance on cheques and work towards the complete benefits of a rapidly developing digital economy.