Of course it doesn't take 21 days to clear.... they could email the issuing bank and receive an instant reply as to the validity of the cheque, but that would be far too logical.
until the cheque is physically presented and either paid or refused.
Which should surely happen within a couple of days once the cheque is actually sent to the issuing bank? It's the 18+ days after the cheque is physically with the issuing bank for the funds to clear that is clearly just wrong. There is no way in the age of electronic payments that funds should take 21 working days to clear. Other than the physical movement of the paper cheque, what exactly is happening that means so much time elapses between this and the funds entering my bank account?
As stated above, it's just yet another way for banks to hold on to our money as long as possible. Will this change with the new SEPA laws?
There is no way in the age of electronic payments that funds should take 21 working days to clear.
And there you have the crux of the matter. This isn't an electronic payment. The fund transfer between the banks in the end may be but the payment you have agreed to isn't.
Like I said, the physical movement of the cheque takes time and I accept that but once the cheque has been verified by the issuing bank, it all becomes an electronic transfer at that stage.
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