Cheques being phased out!

[Lorraine_5040934]

I have just left our local bank who wouldn't cash a cheque I had written out to draw cash out of our own account. Having used this method for over forty years, I was told they would only let me draw my money out with a debit card for security reasons. Have checked on google etc and it says cheques are to be totally phased out by 2018 although most banks are already trying to phase them out now.

I know we have to keep up with the times, but just wondered how this will work? I rang the banks head office and asked just two questions, they didn't have the answer to either:

1. I want to send a surprise gift of money to a relative (i.e. nephew, neice etc) and put it in a birthday card, obviously I don't have their account details and it wouldn't be a surprise if I asked them! How will I send them money in the future?

2. My washing machine goes wrong, 3-4pm on a Friday. Local plumber etc comes in, fixes it, how do I pay him?

The bank didn't know. I know they are trying to reduce paper transactions and argue chip and pin is safer, but is it? I can see there will be times when cheques are still needed and the banks haven't come up with a solution to my questions - its happening much faster than 2018 as stated in the media - and lots of elderly people don't visit cash points etc to draw cash out, they still write cheques to pay bills.

 

[Lutz]

Cheques were phased out over here more than 10 years ago.

The two examples that you have described are handled now as follows:

Example 1. You want to send money as a surprise birthday present to your nephew/niece.

You ask their parents for details of their account and transfer the money there. You write a nice message to that effect in the birthday card to tell your nephew/niece.

Example 2. You need to pay the local plumber late on a Friday afternoon

Most businesses will be equipped with card readers by the time cheques disappear. Where this is not the case, details of their account are printed on the invoice and you can do a money transfer.

 

[Lorraine_5040934]

Lutz - what if I want to surprise the family - even the parents?

 

[Lutz]

Then you have two options. Either you put cash in the birthday card or you ask your relatives for details of their account at a time or in a situation where they would not suspect that it could have anything to do with a birthday present.

 

[NickinFrance]

It will never happen in France, I was in our local bread shop a couple of days a go & the woman in front of me wrote out a cheque for 1.10 _.

 

[v.meldrew2]

The very nice mobile caravan service man was here last week. His charge of

 

[Lutz]

We have lived without cheques for a good few years now and in the meantime solutions have been found for all potential problems, even for those who don't do any internet banking. Where bills are not paid on the spot by card either the other party gives details of their account on the invoice or they send it accompanied by an appropriate credit slip, often already already filled out with the sum to be paid. All you have to do then is to sign and hand it in or post it to your bank.

 

[RogerP]

I've never written out a cheque in my whole 43 years of being on this planet.

I've some how mangaged very well with out them.

 

[DeliDave]

when I was CORGI registered(now Gassafe) they offered a card reader,iirc it was

 

[C_374479958]

Very interesting reading this thread, but was shocked when a suggestion was made of putting cash in a birthday card.

DO NOT DO THIS, the Royal Mail will not honour any cash lost this way, and you would not believe how much cash is stolen in birthday/christmas cards every year.

 

[Lutz]

Very interesting reading this thread, but was shocked when a suggestion was made of putting cash in a birthday card.

DO NOT DO THIS, the Royal Mail will not honour any cash lost this way, and you would not believe how much cash is stolen in birthday/christmas cards every year.

The suggestion to put money in the birthday card obviously does not apply when the card is sent through the post.

 

[v.meldrew2]

Very interesting reading this thread, but was shocked when a suggestion was made of putting cash in a birthday card.

DO NOT DO THIS, the Royal Mail will not honour any cash lost this way, and you would not believe how much cash is stolen in birthday/christmas cards every year.

I think we have a cultural clash here as much as a technical one. As has been pointed out, the use of cheques in France is still very commom - the number of times I have waited in supermaket check-out lines for a French customer to fiddle around with writing a cheque! However the French, like us, are also addicted to their credit/debit cards. I recall that when I lived in Germany 30-odd years ago, in an age before plastic money, the use of cash was the norm, and I wonder if this is still the case. Lutz will no doubt correct me on this but I suspect that plastic is very much less prevalent there than here or France, leaving cash as the usual way of paying for items like the supermarket bill. It is some years since I last went to Germany, but I remember it was extremely difficult, even impossible, to find a petrol station that took credit/debit cards. As we were only in transit through Germany to Switzerland I did not have any German currency - fortunately I found a garage quite happy to take pound sterling notes and give change in Deutschmark!

And another thing - I know it's no use moaning about it now, but the demise of Eurcheques a few years ago has made it extemely difficult and expensive to pay for services abroad from UK, such as sending a deposit for a campsite. Like others, I have to resort to sending Euros in the post, but I don't like doing so.

 

[DavidKlyne]

What I don't understand is why the OP went into a bank with a cheque to obtain cash. We all have bank cards and surely that is the way we obtain cash. If you are concerned about security of ATM's then use it inside the bank or get cash back when you buy your food shopping. When ever I need the services of a trademan I always ask what payment methods they accept. (I think you would be pretty lucky to get any tradesman at such short notice!) If its only cash and I wish to continue with the tranasaction I would go to an ATM. Most major retailer no long accept cheques as amethod of payment as a result of this it will become more expensive to process cheques so you can see why they are being phased out.

David

 

[xtrailman]

A new kitchen is being fitted next monday, payment is in stages.

I have paid by cheque, if the credit card was used, it would be 2% extra. And i am not happy carrying 4k in cash.

Next month my car service will be paid for by cheque, as was my builders bill for the extension, last August.

 

[Lutz]

Very interesting reading this thread, but was shocked when a suggestion was made of putting cash in a birthday card.

DO NOT DO THIS, the Royal Mail will not honour any cash lost this way, and you would not believe how much cash is stolen in birthday/christmas cards every year.

EC bank debit cards are the standard method of paying in Germany nowadays, especially as internet banking has become more popular. These cards are accepted by probably more than 95% of all businesses. However, the use of credit cards is becoming less and less widespread, but all major oil companies will still accept them at petrol stations, as do the better hotels, some of the larger supermarket chains and department stores, and wherever there is a lot of tourist traffic. In fact, I have a Lidl MasterCard which gives me a 5% discount on all petrol purchases at petrol stations accepting credit cards, including overseas, and I have rarely not been able to use it, even in Germany.

 

[Stephen_374341239]

Hi all

I think you all are missing the point.

Its another ripp-off by the Banks there no money in cheques for them. BUT there big BIG money to be had in Card readers. Think about it.

 

[Heethers]

Not the small one-man band that's trying earn crust and keep prices at fair rate, he can only deal in cash or a cheque, another cop out by banks at not offering a service.

Lutz couldn't care less what other Countries do here we should fight the changes as its the pensioners that are the ones that will suffer especially those that can't get about, or them that don't have bank at hand.

 

[Dustydog]

Hi Ray

I too hate paying these greedy banks extra money for paying by credit card.

However if we are buying say a holiday we do use the CC purely to get the extra guarantee incase anything goes wrong. eg the airline goes bust etc.

Cheers

Dustydog

 

[Lutz]

Not the small one-man band that's trying earn crust and keep prices at fair rate, he can only deal in cash or a cheque, another cop out by banks at not offering a service.

Lutz couldn't care less what other Countries do here we should fight the changes as its the pensioners that are the ones that will suffer especially those that can't get about, or them that don't have bank at hand.

I suspect that the dice have been tossed and there's no turning back.

Dustydog, credit cards aren't the only alternative. We don't have cheques over here, but many people don't have credit cards, either.

 

[DavidKlyne]

EC bank debit cards are the standard method of paying in Germany nowadays, especially as internet banking has become more popular. These cards are accepted by probably more than 95% of all businesses. However, the use of credit cards is becoming less and less widespread, but all major oil companies will still accept them at petrol stations, as do the better hotels, some of the larger supermarket chains and department stores, and wherever there is a lot of tourist traffic. In fact, I have a Lidl MasterCard which gives me a 5% discount on all petrol purchases at petrol stations accepting credit cards, including overseas, and I have rarely not been able to use it, even in Germany.

Lutz

Interesting what you say about using debit cards for use online. Here in the UK we have better consumer protection if we use a credit card. It was just one of the rules when they were introduced where as a debit card is just regarded as an electronic cheque and you can only spend what you have in the bank. I have had no problems using my credit card when buying fuel in Germany although there is still a bit of confusion regarding Chip and Pin but usually get round that. Tend to look for a REWE in Germany as they accept credit cards. The only real problem in Germany I have found is the use of debit cards, I thought with Delta and Maestro we had international standards but I have not been able you use mine in such places as Aldi/Netto, not quite sure why.

David

 

[ShadySadie]

Contactless cards for up to

 

[Lutz]

EC bank debit cards are the standard method of paying in Germany nowadays, especially as internet banking has become more popular. These cards are accepted by probably more than 95% of all businesses. However, the use of credit cards is becoming less and less widespread, but all major oil companies will still accept them at petrol stations, as do the better hotels, some of the larger supermarket chains and department stores, and wherever there is a lot of tourist traffic. In fact, I have a Lidl MasterCard which gives me a 5% discount on all petrol purchases at petrol stations accepting credit cards, including overseas, and I have rarely not been able to use it, even in Germany.

It's the same with me the other way round when I use my credit card without chip and pin in the UK, but I've usually managed to get round that, too.

Yes, credit cards do offer better consumer protection over here, too, but many businesses are reluctant to accept them because of the extra charges incurred, either by the seller or if he tries to pass them on to the purchaser. The EC bank cards obviously don't involve any such charges because there is no similar reluctance.

Maybe there is also a cultural clash here. Germans typically seem to want to know their immediate financial status and don't like being faced with a credit card bill perhaps weeks after purchase.

I haven't tried to use my EC (Maestro) card at Aldi or Lidl in the UK so I can't comment on whether that works the other way round.

 

[xtrailman]

As i understand it, not all debit cards, give the same protection as a credit card, so i don't have one, also i believe there is a charge for a bank transfer?

 

[Lutz]

But cheques don't offer as much protection as a credit card, either.

 

[xtrailman]

No they don't, but most traders are happy to take a cheque, its the small one man band, such as my plumber, who only wants cash or cheque, and i have never lost money through fraud via cheque, so i have confidence using them.