New cheque standard
You're referring to the new cheque standard!
In the UK, the new cheque standard is known as the "Cheque and Credit Clearing Company Limited" (C&CCC). It's a new system that aims to improve the efficiency and security of cheque clearing.
Here are some key changes:
- Image-based clearing: Instead of using magnetic ink characters (MICR) to encode cheque details, the new system uses images of the cheque to capture the information. This makes it easier to read and process cheques.
- Faster clearing: The new system allows for faster cheque clearing, typically within 2-3 working days, compared to the previous 5-7 working days.
- Improved security: The new system includes additional security features, such as:
- Cheque images are stored securely and can be retrieved if needed.
- Cheques are verified against a database to prevent fraud.
- The system can detect and prevent cheque fraud, such as cheque washing or alteration.
- Electronic presentment: Cheques are presented electronically, reducing the need for physical transportation and increasing efficiency.
- Enhanced customer experience: The new system provides customers with more visibility and control over their cheque transactions, including the ability to track the status of their cheques online.
The new cheque standard is designed to make cheque clearing faster, more secure, and more efficient, while also providing a better experience for customers.