Cheques
March 30th, 2011 at 1:00 pm by David FarrarAAP reports:
Cash is falling out of favour, the use of cheques is virtually non-existent, debit cards are gaining but we haven’t quite made the leap to paying by mobile phone.
The use of cheques is falling out of favour, with fewer than 40 per cent of the study’s respondents saying they had made a payment by cheque in the past year.
It has been some years since I wrote a cheque out. I do have a cheque book somewhere, but Internet Banking is not just so much easier, but you get a record of whom you were paying and why by using the three reference fields.
March 30th, 2011 at 1:13 pm
Cheques are good Farrar,
Vote:lets say you do me a bad deal,
with a cheque, I can rescind, cancel.
do not pay to farrar
March 30th, 2011 at 1:17 pm
some people write cheques. I wrote one today, a rather large one…
Vote:March 30th, 2011 at 1:18 pm
In 2005 I was writing about 3-4 cheques a month. Now I write 1-3 a year…
Vote:March 30th, 2011 at 1:29 pm
Yes it is rarer now, although the Co. book gets a bit of a look at from time to time. It is interesting that there are still a few Co’s in NZ that do not do the direct credit thing.
Vote:March 30th, 2011 at 1:46 pm
pq thats just a weird comment. What have you against against DPF for a start.
Vote:March 30th, 2011 at 1:52 pm
Yet another reason why Christchurch could offer us the opportunity to devise a new kind of city now a traditional CBD no longer reflects the way we work and interact as businesses. Even before the earthquakes, the city centre looked dead, unkempt and empty as in many other towns in NZ. Hamilton is another city centre that is dying – not because of poor planning etc but because that’s no longer how many of us want to live, work and shop.
We used to have to have our offices clustered near banks, the post office etc but not any more.
I wonder how many of the businesses that have moved to new premises in the suburbs or spread themselves round several premises will want to return to the orthodox office block in the city centre where transport, parking etc are a problem.
We may even return to people working close to where they live, near their children’s schools and with shops and services nearby.
Vote:March 30th, 2011 at 1:57 pm
Interesting observation, DPF, especially given cheques are so much more common in the US. Someone should write a Masters thesis on why that is. Any takers?
Vote:March 30th, 2011 at 1:58 pm
Winston doesn’t appear to use cheques either. That $158,000 seems to be still outstanding. Mind you, it seems he preferred cash on the collections side of the ledger.
Vote:March 30th, 2011 at 1:58 pm
The impact of the net on the way everyone does business is greater than most people imagine. Some just did not see the change coming (the purchasers of the Yellow Pages certainly didn’t). If it were not for Trade Me parcel business NZ Post would be struggling (even more) on reduced revenue from mail. I recall at the early stages of the Web it was said that if your job description included ‘broker’ or ‘agent’ you should consider a new occupation because the net would make middlemen redundant; we see this happening. As for bank tellers, numbers are diminishing as banks cease to need a physical presence.
Vote:March 30th, 2011 at 2:29 pm
You still need cheques for large payments. With internet banking you have to ring up and get the large amount cleared, rather annoying. Direct debiting or automatic payment are the most common forms of payment today, but when you get a contractor in, cheque is always the easiest.
Vote:Also I do not deal with banks that bounce my cheques, or people who do not take cheques. I had a bank once who bounced one of my cheques because they paid out on one of my cheques five days before the date I wrote on the cheque, making the second one bounce. They claimed they had done nothing wrong. I no longer deal with that red coloured bank.
March 30th, 2011 at 2:30 pm
In Singapore this week. People use credit card for everything here, and they don’t sign under a certain value. Surprised me initially, but makes sense when I think about it – when I use my credit card in a parking building I don’t sign. Makes things much more efficient.
I haven’t written a cheque for maybe 4-5 years, I have no chequebook.
As for the US – basically because their banking system is so fragmented. Cross bank transfers are hard, and they never got fully into eftpos. So they use paper for everything.
Vote:March 30th, 2011 at 2:39 pm
BeaB 1:52 pm. Yes that sounds quite likely as time goes by.
cheers
David Prosser
Vote:March 30th, 2011 at 2:59 pm
BeaB and David Prosser, I disagree. Currently, even with the wonders of modern technology, I don’t reckon you can beat a good, proper, old-fashioned, face-to-face meeting. If I’m right about that, people will always flock together, which means only one thing: we’ll still need cities. What I think is sure-fire way to get a lifeless CBD is government planning. Let’s hope our latest government department doesn’t try and plan too much of the new Christchurch.
Vote:March 30th, 2011 at 3:27 pm
I wrote one yesterday – tradespeople still like them.
Schools too.
Vote:March 30th, 2011 at 3:28 pm
Another thing , does anyone actually reconcile their bankstatements any more ha ha.
I never understood why this was necessary- maybe to figure out if you are going to run out of cash? Don’t know.
Vote:March 30th, 2011 at 3:40 pm
Cheques as monetary gifts.
Vote:Safer than cash.
And looks better in a birthday card than request for bank account# to bank transfer to.
March 30th, 2011 at 3:50 pm
Cheques are still written but I hardly use them except I use a bank cheque if direct credit cannot be used because the amount is too large or the recipient does not want direct credit. Like you David I have a cheque book somewhere but have not used it for several years. Cheques can be stopped, and you are always having to reconcile them. Eftpos and Direct Credit are instant. Such payments can be reversed however and is something to be kept in mind. Hence the safety of a bank cheque for something significant.
Vote:March 30th, 2011 at 3:55 pm
I have just been talking to someone who has been in Wellington talking to a govt department about their funding of a cultural project.
They agreed to everything but then explained that they rules did not allow them to make direct credits and would have to post a cheque.
The malady lingers on.
Vote:March 30th, 2011 at 4:02 pm
he he, i tried to pay for a new car on credit card but they would only take cheque ha ha.
Vote:March 30th, 2011 at 4:25 pm
Wreck1080 – given that they would face a merchant service fee of likely between 1-2% for accepting the payment via credit card, it is unsurprising they prefer cheque. Large ticket items often see credit cards shunned.
For those that complain about post dated cheques being processed ahead of time – don’t write them. The reality is all banks pretty much use the same outsourced supplier to scan and process cheques. The automated process doesn’t always pick up nuances such as date. This would be same regardless of the bank you bank with so the advice again – don’t write post dated cheques.
I remember this article last year http://www.nzherald.co.nz/news/print.cfm?objectid=10660027. Interesting for anyone who follows this stuff. Unfortunately, the source data for the article doesn’t appear to be on the NZBA site any more.
Vote:March 30th, 2011 at 4:40 pm
It is scary how things can change so quickly.
“When I were lad” and first started work (in Canberra in 1982), I did almost all my business by cheque or cash. I could get a credit card with a $500 limit, and that was with a secure permanent job. You had to be really well paid, with considerable positive net worth, to get a decent credit limit. Paying your rent required you to visit the landlord and hand over a cheque or cash each fortnight.
But a lot of retail establishments won’t take cheques without “prior arrangement”, which meant establishing your credit worthiness with them. You either had to get a bank cheque or carry a large wad of cash with you.
It was very, very important to remember to go to the bank on Friday and get cash for the weekend. No pub, restaurant or supermarket would take a cheque, and I remember a few weekends spent at home doing very little, with not much to eat, because I forgot to get cash.
Then ATMs arrived and you could get cash on the weekend. This was a revolution. Not that you could do much with it, since all large retail establishments closed at 1.00 pm on Saturday.
It is quite clear to me that the invention of the internet, internet banking and direct debit have greatly increased my well-being.
Vote:March 30th, 2011 at 5:12 pm
Don’t get to excited as its the start required for the cashless society and ultimetly a one world government. Like pigs to the slaughter and we all love to embrace it!
Vote:March 30th, 2011 at 5:54 pm
Internet banking is a great invention, but cash is king. How much for cash, would you like the Gov discount with that. Without the cash economy the country would go belly up. Cash goes round and round , you cant bank it, gotta spend it.
Vote:March 30th, 2011 at 6:08 pm
pq – ‘Cheques are good Farrar,
lets say you do me a bad deal,
with a cheque, I can rescind, cancel.
do not pay to farrar’
This can land you in trouble. The trader can take you to District Court and sue ‘on’ the bounced cheque. In such a case the reason why the cheque was cancelled is of no relevance to the judge. (S)he will give summary judgment (ie you have no possible viable defence) in favour of the trader who if bloody minded enough will get Veda to give you a black mark.
Vote:March 30th, 2011 at 6:45 pm
I have not had a cheque book for many years. In the last 5 years or so the ONLY time this has been a problem is with the pre-historic Dept of Building and Housing who require me to do so. This means every time there is a new tenant to lodge a bond for I have to walk to the bank and pay 75c for them to write me a cheque, then buy a stamp, then supply an envelope then address and lick it, then find a post box. And at the other end some bunny is doing their version of the same labour intensive process. Hard to fathom how they think it is low priority spend to get internet banking sorted like other govt depts have done.
Vote:March 30th, 2011 at 6:47 pm
I found my chequebook last time I tidied up, most recent stub was from 2001.
Vote:March 30th, 2011 at 9:03 pm
Use about 5% of the cheques that I once did. Internet has replaced those.
Vote:Cash tho I still love. Stick a big bunch in the wallet from time to time and buy using that. Quick at the counter when buying. Just so much more convenient than a card.
For business I use a credit card. Full details straight into the accounting system. I avoid having ‘accounts’ at places and invoice and statements coming in.