Friday, May 17, 2019


Not too long ago I opined that cheques would be consigned to the dustbin of history within five years.    And now the news that Kiwibank will stop accepting cheques from 28 February next year.    I expect all the other banks will follow suit toot sweet.

I suspect most businesses will rejoice at the demise of  'the cheques in the mail'.


Lord Egbut Nobacon said...

Until such time as a law is passed forbidding banks to refuse the opening of an account they will be with us for a while.

Until such time as the Govt. can figure out how to get money to those who do not have a bank account and use use cheque clearing agencies to survive we will have a bank that issues cheques.

Adolf Fiinkensein said...

How many such people do you think there are in NZ?

The Veteran said...

A cheque is nothing but a piece of paper which may or may not be worthless depending on its backing. While travellers chegues still have a use in third-world countries the ordinary cheque as we know it is a anachronistic hang-over from a distant pass.

For Egbut. Since when was any bank required to open an account if they didn't want to?

Lord Egbut Nobacon said...

Payment methods such as online transfers and money orders are irreversible. This means, there is no way to stop the payment once it is processed. With cheques, all you need to do is contact the bank and ask them to stop the payment.
There can be a number of reasons why you would want to stop a payment. Consider this scenario. You issue a business checks for a particular raw material to make a certain product. Once the raw material arrives, you discover that it fails the quality test. In this case, you can ask the vendor to take back the delivered goods and cancel the payment by stopping the check.

Another advantage of having a chequebook is that it allows you to pay people who do not have an account in the bank. Even if the recipient has an account, it’s always easier to write a cheque than going through the lengthy process of registering their accounts online before money can be transferred.

Many people like those recently released from prison, those with no fixed address or the homeless have no bank accounts and are regularly refused banking access. The only way they can access funds is though a cheque and and cheque clearing agency which take a small cut.......solve that and you can get rid of cheques.

Any cheque you issue goes in the permanent records of your bank account. Banks nowadays even allow you to view and download the images of cheques you have issued in the past. This proof of payment comes in handy at times of legal disputes. Simply put, a cheque is a legal proof that you made a particular payment at a particular date to a particular person.

Adolf Fiinkensein said...


When on pin heads do you waltz or foxtrot?

Andrei said...

I haven't written a cheque in decades

I rarely use cash, in fact I usually don't even carry cash.

Mostly I use my phone with contactless EFTPOS and am irritated when I have to get my card out in stores that do not accept contactless payments.

I hardly ever visit a bank and the branches are closing

It is all so easy

But I do wonder what would happen if all the infrastructure that supports all this fell over?

The Veteran said...

Hi Egbut ... and your response to my 9.16 question.

gravedodger said...

Had a Bank Branch Manager at Lions last Thursday warning of Bank Fraud and its continued growth via the electronic systems.

My demographic has many either without access to a Computer or are in serious danger from attempting to go "cashless".
eg with the current desire for government to keep the elderly in their home by offering support there are multiple opportunities for the not so innocent "carers" to access bank accounts. Pin numbers a constant source of frustration for the declining mental abilities.

I still use a cheque for some payments where I wish to avoid creating another back door to my Cards or bank accounts.

The bad bastards are always one step ahead of the law. The guest speaker also warned against big companies and even the IRD, it is just so easy to believe the web page at the "link" to be the real thing when it is the result of a smart arse being clever.

Lord Egbut Nobacon said...

Veteran......A bank is not obligated to open an account without giving any reason whatsoever.....I thought I said that?

Your turn do you suggest benefits and the distribution of sundry other governmental largesse to those without bank accounts?

The move to the cashless society and the demise of cheques is bank driven not customer driven.