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Reliance by businesses on cheques

The postal strike is highlighting how many businesses in the UK rely on cheques for making and receiving payments. Given that it has been straightforward for well over five years to instruct one's bank to make payments electronically, why do so many businesses still rely on sending archaic pieces of paper around in the post? Most banks charge businesses for each cheque they write or pay in, which together with postage costs and administration time, make cheques a very costly and slow method of payment. In countries like Germany and Switzerland, businesses always include their bank details on invoices to facilitate receipt of payments and cheques are unheard of. Why do so many British businesses insist on a payment method that belongs in the last century?

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Reply to
Nicholas F Hodder
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"Nicholas F Hodder" wrote

Looks like the postal service may be "shooting themselves in the foot"!

"An inevitable outcome of this dispute is that businesses will never want to be in this situation again. "Firms are now going to look at new methods of payment and delivery. That process was already underway, but these wildcat strikes have given it new impetus. "It is ironic that these strikes could end up being counterproductive for the postal workers who have taken this action."

I wonder if:

(1) Businesses will stop relying so much on Royal Mail, and use other alternatives; (2) Government will overturn the legislation that allows Royal Mail to effectively be a monopoly in this sector, introducing a myriad of new firms able & willing to compete...

Reply to
Tim

I think a lot of businesses in the UK also print their bank details on invoices etc as well as 'quick pay' and shortened, combined acc nos and sort codes as well as IBAN nos. However there still is a reliance on the postal service for things that can be done by electronic payments, email... I think that better use of the postal service, esp since they are still losing money for every letter posted, would be for the general public to use the other electronic means (quicker and easier as well) and have the royal mail deliver passports, travel docs, credit cards etc that obviously can't be sent electronically. I for one would like not to receive paper statements for bank acc, credit cards and even utility bills, but I would like something in return. ie higher interest rate on current accs instead of 0.1%. But perhaps that is my fault for not wanting the hassle of switching :-)

I also accept that not everyone has access to internet etc.

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