We must act quickly to save the banks from the greedy people who loan them money every day.

That must be a new thing in BOI john as I had to get a bank draft for an item smaller than that (foreign visa processing expense) and there was no problem getting one in BOI for that. Mind you it was last summer, so might have changed since then…

I just got an AIB bank draft from somebody for €60.

Hi John,

Ask for a Gift Cheque instead of a Bank Draft.

Complete disgrace not issuing bank drafts below 500e.

You do know a post dated cheque is worthless and that issuing cheques without cleared funds available is a violation of irish banking ts&cs?

Perhaps you are not struggling to make ends meet if banking t&c’s are your only concern?

I think what hes trying to tell you carol is that you can get really unlucky with the cheque clearing system. Just because it takes 5 working days to clear at the other end, that doesn’t mean your account can be debited on say working day 2 or 3. Then of course it would bounce and you pay more in charges.

Thanks Declan. This is why I would only do this within 2 days of payday. I wouldnt like to pay the banks anymore than I have to nor inconvenience the cheque payee.

Some very fair points – especially about BOI sending out the letter which I am currently waiting on! Madness – why can’t they do SMS verification?

BOI do have SMS account setup… I think it is for payees under 1000 euro. For larger amounts you have to wait for the letter.

Online banking does both of those things better.

Those examples would only cover a tiny percentage of cheque payments. It’s their use in situations where card readers or online payment are options that is silly. It’s expensive, slow and creates unnecessary paperwork. We still have about a third of our clients paying us by cheque and it means that every few days someone has to go down to the bank to do a lodgement instead of just having it all done electronically. More expensive for the payer and the recipient.

@pharmyco last time I had a plumber out to my house he did not offer credit transfer as option for payment, cash or cheque.

Although probably not that common we did have someone out doing work in the house who had a card reader attached to his phone and took the payment with a credit card. Made a lot of sense and is clearly the way to go. Paying for that sort of service with the credit card also gives good traceability if there are any problems.

Typical business owner… even when clients are paying him he is complaining about it. Be lucky you are getting payments. Let me guess… you run a small enterprise and worship at the alter of ISME and IBEC and would love to have people working for you for about 60 hours a week with disregard to minimum wage rates… Am I correct??

@Tom Maguire. Assume that is a troll…….. (not a member of either of those organisations and no-one here on minimum wage. Getting paid for services you provide is not luck, it’s business…. but do carry on with your intellectual analysis)

Touchy…..

I get charged the same for a cheque as an online transfer, Diarmaid, 20c. If a supplier wants to come with decent alternatives like having a card reader, I’ll use that. I’m all for online banking, and I certainly use it where I can. I was among the first to sign up years ago.

But as someone else said above, not every supplier gives you credit transfer details. I’m getting married this year and we’re doling out cheques left right and centre. They’re a great way of providing payment to the myriad of cottage industries we’re doing business with, whilst also avoiding giving them cash-in-hand payments which might not go through the books.

Pharmyco, online banking is indeed more efficient, but the supplier doesn’t always give you details, and I’m pretty sure that none of my soon to be married friends will be sticking a sort-code and bank a/c number on their wedding invites. A cheque in a card is more personal.

All I’m saying is that cheques still provide a valid (if less relevant) payment method in these times. I know the bank really wants us all paying 20c on small transactions for a packet of chewing gum, but it’s up to businesses to reject cheques as a form of payment if they’re that worried about. Most petrol stations won’t take a cheque, so just do what they do and demand cash or card.

@tom. Relax and get out from under the bridge.

So because the transfer isn’t instant it makes more sense to to take out your quill and write out the payment in piece of paper and post it? I think you’ll find that the cheque is slower and more expensive.

Not for me it’s not. I write the cheque. Costs me 20c, same as an electronic

Isn’t there a 50cent per cheque stamp duty charge?
http://www.aib.ie/personal/current-accounts/a-government-charges

Only on those used

Speed is definitely an issue. Intrabank (at least Bank of Ireland) is instant, at any time of the day, but interbank can really be dreadfully slow.

You’re confusing Direct Debits (which have the issues you mention) and making manual online payments.

Hi Paddy,

Banks do allow a future date on bank transfers. You enter it as the “value date”.

Hi Ger, just to clarify, under legislation in place since 2009 (the Payments Services Directive) all electronic payments must be processed and the beneficiary given value by close of business on the following working day (known as D+1) at the latest. The only stipulation is that the payment instruction is received by the ‘shut-off’ time of the paying bank. This can vary from bank to bank but is generally around 3 p.m.

I agree. It is easier and more secure, and I have never sent or received cheques by choice.

BUT I don’t agree that it’s quicker. Interbank ones often take days as well (doing what I’ve no idea, since they don’t need to clear). I’ve had interbank ones within Ireland take longer than interbank from France to Ireland.

There’s also other “curiosities” to deal with. Like when someone accidentally got my account number wrong. It failed the AUTOMATIC validation you can do on A/C number and sort code. Yet PTSB still accepted the transaction, and took almost two weeks to return the money to her, before she could try it again.

I still use electronic only, but many of its potential advantages (speed in particular) don’t work out in practice.