Issue 43 |April 2019 - Cheque & Credit Clearing Company
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Issue 43 |April 2019
Review of 2018
Welcome to edition 43 of
ChequeMate. 2018 has been
a year of change for the
Cheque and Credit Clearing
Company so, in this edition,
we look back at the part we
played in the UK payments
market, the rollout of the
Image Clearing System and
the latest news on Pay.UK
and the NPA Programme.
In 2018 the C&CCC played an and measured way, but also at All participants in the Image
important role in the UK payments different speeds, so it is prudent Clearing System both clear and
market, with 346 million cheques that the rollout continues into settle themselves for the cheques
used for payments and to acquire 2019. As at the end of quarter they issue, just as participants
cash totalling a value of £442 billion. one, we are pleased to report always did in the paper clearings.
Of these: good progress. Customers are Over time we expect to have more
• 235 million cheques were cleared not being disadvantaged during participants, including those that
in Great Britain through the paper this time – they can continue to only clear their cheques (as switch
clearing system and 19 million write, receive and pay in cheques participants, connecting directly
cheques were cleared through with confidence. Until the rollout into the system) whilst seeking a
the UK-wide Image Clearing is complete, the image-based commercial arrangement with a
System; with both these systems clearing system is operating in settlement participant to settle the
being managed by the C&CCC. parallel with the long-established cheques they have issued on their
• 81 million cheques were paper-based clearing system behalf. In addition, participants
processed within the banks so customers can continue to don’t have to be banks or building
themselves in Britain. use cheques seamlessly and societies, they can be non-bank
•11 million cheques were cleared without detriment. payment service providers -
either by the Belfast Bankers’ paving the way for the payments
Clearing Company or stayed More participants revolution of the 21st century.
for processing within the banks It is now easier for challenger and
themselves in Northern Ireland. Closure of the euro clearing
small banks to participate in the
cheque clearing process and the Following significant decline in
Cheque imaging Image Clearing System has UK- volumes over the past few years,
Also during 2018, the rollout wide coverage (rather than Great the euro clearing system – used to
of cheque imaging gathered Britain only). Easier access means clear euro-denominated cheques
pace, with increasing numbers that for the first time the cheque issued by UK banks - was closed on
of cheques being cleared using clearings have new participants. 10 September last year.
the new system and more and At the time of its launch in
more customers benefitting from October 2017 there were 17 The British euro cheque clearing
the faster timescale. Getting the participants in the Image Clearing system was established in 1999 to
introduction of the image-based System - more cheque clearers coincide with the launch of the
clearing right - i.e. with minimal than at any time since the second euro, with euro cheques used mostly
customer detriment - is the half of the nineteenth century by businesses. Annual clearing
industry’s key objective. This – and then, on 31 July 2018, volumes for euro cheques peaked
means organisations are the Access Bank joined as our in 2003 at 729,000 and have
implementing in a considered eighteenth participant. declined every year since then.
Closure of the euro clearing continued . . .
By 2015 volumes had dropped systems – the C&CCC, Bacs and systems, enabling new services to
to less than 90,000 and, after the Faster Payments – into Pay.UK, the be developed by these providers
UK’s European Union membership new payment system operator. for the benefit of end users,
referendum in June 2016, the including anyone who regularly
rate of decline accelerated even Pay.UK has been set up as uses cheques.
faster. In 2017 just short of 55,000 independent of the banks that
were cleared, a 32% decrease have always owned the retail It means that after nearly 200
from the year before. payments systems. Instead of years since the first permanent
shareholders, it has Guarantors. committee of clearing bankers
Customers will still be able to use Its Board reflects the experience was formed in 1821 to regulate
euro cheques as it is only the needed for the establishment the clearings, 2018 marked
clearing system that has closed. of the new payment system the last year of the cheque
Since 10 September 2018 euro operator, providing a strong clearings being managed by
cheques have been processed foundation for the future. a bespoke entity.
by means of direct exchange
and settlement between the One of the objectives of the It is not the end though – the spirit
relevant banks. consolidation is to make it easier of continuous improvement and
for banks, fintech firms and other innovation in payments signals
A new beginning payment service providers to a new beginning. Cheques may
enter the market and compete be more than 350 years old but
In July 2017, the Competition
effectively. In addition, any they continue to play a vital
and Markets Authority gave its
strategic innovations can be role within the ever-evolving
approval to consolidating the UK’s
co-ordinated across payment payments landscape.
three regulated retail payment
New blogs published Industry teams join Pay.UK
Since April 2017, the C&CCC has
been publishing blogs on a section
of its website called ‘Reality
Cheque’. It brings together stories
about the role cheques play in
people’s lives, the latest research
on cheque usage and the benefits
of cheque imaging.
1 March 2019 marked the date family; a family that is now rich
The blogs, written by a variety when Pay.UK became the formal with talent and expertise from all
of individuals, businesses and home for the skilled people within parts of retail payment operations.
charities, help to ensure that the Cheque and Credit Clearing With this expert team now officially
discussions around the role Company, as well as those within in place, we’re even better
cheques play in the payments Bacs and Faster Payments. placed to maintain, develop,
landscape are complemented and guard the payment systems
by personal stories about how This was the final stage of bringing and standards which are the
important cheques are to different these important payment services lifeblood of the UK economy.
customer segments. together under the Pay.UK For those we work with, rest
roof, and follows on from the assured it is very much business
Contributions to date have announcement of the company’s as usual across all areas of the
included submissions from the new name in October 2018. organisation and our stakeholders
Charity Finance Group, the TALL Importantly, there will be no should continue to reach out to
Group of Companies and the discernible difference for their contacts as normal.”
Canal and River Trust. These participants, service users, and
and all other blogs can be read end users other than a new email Every day, individuals and
in full at www.chequeandcredit. address for staff within these businesses use the services
co.uk/information-hub/news-and- organisations: firstname.surname@ provided by Pay.UK to receive
events/blog. wearepay.uk. or pay salaries, settle bills, and
make online and mobile banking
We are also on the lookout for Paul Horlock, CEO of Pay.UK, said: payments – more than £7 trillion
new contributors to our blog “While teams have already been moved through Bacs Direct
section. If you would like to working together for some time, Credit, Direct Debit, Faster
provide something for this section, we’re really pleased to formally Payments, Paym, and cheques
you can get in touch with us at: welcome everyone to the Pay.UK in 2018.
info@chequeandcredit.co.uk.
The payments industry needs you!
Have you ever wanted to have Search for new Guarantors could be a bank or building
an influence on transforming the is underway society, a body that represents
way that payments are delivered consumer interests or the interests
Pay.UK is currently inviting
in the UK? Do you want a platform of SMEs, a corporate, a utility
applications from organisations to
where your voice will be heard? company, a public sector body,
become Guarantors, with the aim
Would you be interested in an a fintech, a software provider or a
of building up a balanced and
opportunity to assist Pay.UK in payments processor.
representative group of Guarantors.
achieving its vision of becoming
We want our stakeholders to
the leading retail payments Why become a Guarantor?
influence all areas that we are
authority, delivering best-in-class Guarantors have the power to
responsible for and, by becoming a
infrastructure and standards help shape the future of payments
Guarantor, your voice will be heard
for the benefit of people for the benefit of everyone by:
and your contribution will count.
everywhere? •h olding Pay.UK accountable
Why does Pay.UK have •p roposing new Board members
Our core purpose is to support a •c onfirming or rejecting the
vibrant UK economy, enabling a Guarantors? reappointment of existing Board
globally competitive payments Pay.UK is a company limited by members
industry through the provision guarantee and Guarantors are •a ttending and voting at Pay.UK’s
of robust, resilient, collaborative the ‘owners’ of such a type of annual general meeting; and
retail payment services, and rules company. A company limited •c onfirming Pay.UK’s auditors.
and standards for the benefit by guarantee is a legal entity
of everyone. We will do this by separate from the people involved In addition Guarantors will have
driving greater participation and in it. We don’t have shareholders the opportunity to:
involvement in payments, so and we do not distribute profit, •a ttend meetings with the Senior
that payment service providers so any profit we do make will be Independent Director, as the
compete and develop innovative ploughed back into the business. appointed Guarantor liaison
solutions that respond to customer point for the Board of Directors
needs, driving better service and Who can become a •p articipate in Pay.UK’s ongoing
value for end users.
Guarantor? programme of Guarantor
We are looking for a group relations, and
One of the ways that organisations • receive a half yearly
can get involved to help support of Guarantors made up of
representatives from organisations communication from the Chair
this purpose is to become one of and Chief Executive Officer
our Guarantors. that are involved in the UK’s
payments ecosystem. So you updating on the progress of Pay.UK.
What is the extent of a
Guarantor’s commitment?
Imaging - when will the money be mine clarification If an organisation decides to apply
to become a Guarantor there is
With full migration to cheque the cheque is paid in – for no financial commitment upfront
imaging getting ever closer, it example: over the counter, and, in the unlikely event of Pay.UK
is appropriate to reiterate the by post, through an ATM or being wound up, the liability of a
central message to cheque users by mobile banking app or Guarantor is limited to £1. We are
regarding: ‘if a cheque I pay desktop scanner linked to funded by the participants in our
in is processed as an online banking. retail payments systems, not by
image, when will the our Guarantors.
money be mine?’ If a customer pays
a cheque in at a The time commitment is not
If a customer pays Post Office, the overwhelming and you don’t have
in a cheque on a above timescale will to be based in London – we are
weekday (before increase by at least looking for Guarantors from all
their bank or building one additional day. over the UK.
society’s advertised This is because the
cut-off time) they will be Post Office is not a bank How do I find out more?
able to withdraw the funds and the cheque has to be If you would like to learn more
by 23.59 on the next weekday sent by the Post Office to the about how your organisation
(bank holidays excluded and customer’s bank. Once received could become a Guarantor of
provided the cheque doesn’t by the customer’s bank the Pay.UK, please contact us on
bounce). The advertised cut-off cheque will then be processed enquiries@wearepay.uk or simply
time will vary from bank to bank in line with the image-based download an application pack
and building society to building cheque clearing timescales from: www.wearepay.uk/who-we-
society and according to how highlighted above. are/guarantors/.
Social media NPA Programme update
In October 2018, Pay.UK published a ‘Strategic Partner Procurement
Prospectus’ with the aim of appointing a strategic partner to help
define, deliver and operate an evolving world-class payments
infrastructure for the UK. Known as the New Payments Architecture
(NPA), the new infrastructure will safely and securely process trillions
of pounds worth of payments every year.
The NPA will be a new conceptual model
for payments in the UK and will take over
Enablin
the processing of Bacs, Faster Payments UK econg a vibrant
and, potentially, cheque payments. The Strateg omy:
ic
successful partner will be responsible for Procure Partner
Prospe ment
the design and build of the clearing and ctus
settlement layer of the NPA, which includes
Our website and social media the provision of hardware, software,
channels continue to be important secure communications and security
platforms for our communications standards and operating environments.
programme, enabling us to
reach out to a wide range of In December 2018 a Pre-Qualification
stakeholders. Questionnaire (PQQ) was issued to
potential suppliers and, in April 2019,
In 2018 our website was visited the next stage of the process will begin with the
by more than 265,000 people, issuance of a Request for Information (RFI) to suppliers qualifying
which was a 10 per cent increase post-PQQ. The intention is to select a strategic partner in Q2 2020.
on 2017. The site was visited most
often from people located in the
UK, the USA and India, and the
most popular download from
Sale of base stock to business customers
the site was the ‘New Cheque
With the implementation of the Image Clearing System well
Clearing Process’ infographic,
underway, we are aware that a large number of corporate
which explains how cheques
customers are not personalising and encoding cheques in
are cleared through the Image
accordance with the requirements of Standard 3. The C&CCC
Clearing System. The most
requests printers to be mindful of the rules regarding the sale of base
popular video on our YouTube
stock to business customers, which is detailed in section 3.4.3 of the
channel is the ‘How Cheques
CPAS Rules and Operating Regulations. Cheques must be printed in
Clear’ animation, which has been
accordance with these rules and regulations.
watched by more than 33,000
people since it was uploaded.
If any printer is made aware of issues with poor corporate printing
or would like more information on the issues we are seeing, please
Details of how to access all of our
inform the C&CCC Company Office via the CPAS Helpdesk’s new
social media channels can be
email address, which is: cpashelpdesk@wearepay.uk.
found at the end of this newsletter.
Payment stats
A range of statistical payment
Issue 43 | April 2019
information is available to view
on the Cheque and Credit
website. The Annual Summary
of Payment Statistics, Quarterly There are a number of ways you can keep up to date on the progress of the
Payments Statistics Report new cheque imaging system. Cheque Mate is one way of catching up on
for Q4 2018 and March 2019 the news, but the C&CCC website is also a good source of information.
Monthly Payments Statistics • General enquiries: questions@wearepay.uk
Report have all been recently • Media enquiries: press@wearepay.uk
published on our website at: • Web: www.chequeandcredit.co.uk
www.chequeandcredit.co.uk/
• Web: www.wearepay.uk
information-hub/facts-and-
• Twitter: @chequeandcredit.co.uk
figures/payment-statistics.
• LinkedIn: www.linkedin.com/company/cheque-and-
credit-clearing-company
• YouTube: www.youtube.com/user/chequeandcredit/videosYou can also read
