My other half used the cheque clearing with lloyds last week as it was hmrc tax rebate for a large amount . She deposited the cheque online at 4pm and next day it was cleared at 9am when she checked upon waking up… That is quick. It probally cleared before 9am but that’s when she checked
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How does this actually work from a technical point of view?
Whenever I’ve paid a cheque in over the counter, the teller will put it on a what looks like little motorised semi-circle, which I’m guessing reads the numbers from the bottom of the cheque? As I don’t get the cheque back, I never really thought about the checking (ha) of it.
But now you can do it with an image, I guess that must mean there’s a database of cheque numbers or ones that are used? And that must be updated almost immediately?
Is this part of why it takes so long for a cheque to clear that these things are validated? So I couldn’t take a photo of a cheque, send it to Starling and then 30 seconds later walk into Natwest and pay it in over the counter? It might work initially but before it clears they would be checked against each other?
My recollection of depositing a cheque in branch involved them inputting all the details into the computer along with taking my account details. Like you said I assume they take the numbers off the bottom and the amount and it is then processed like a bank transfer thus making it void?
Therefore with an image you can use image recognition software to pull these details out and automate the process?
That’s my theory anyway 
I think a lot of banks still read the numbers at the bottom of the cheque using a magnetic reader, and add any additional details required into the system (like the amount) manually. I’m judging by my last visit to a Nationwide branch.
As an aside, it used to be my hobby to cut the magnetic numbers at the bottom off of the cheque from time to time, just so that someone had to input all of the details manually. Petty, I know, but some companies deserved it.
Also, on those forms where it said “do not write below this line,” I used to rub that area with a candle so no one else could write there, either.
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you rebel!
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That’s the level of petty that I aspire to!! 
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In the old days, your bank used to return your cheques to you once they had been paid in by the recipient.
As for how cheque imaging works now, take a look at https://howbankswork.com/post-2019-uk-cheque-clearing-process/
You’re a monster and I love it - I’ve not had a ‘paying in book’ or a cheque book for YEARS, so that kind of ruins the fun
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I’ve heard of that in the US but never in the UK. How ‘old days’ are we talking here?
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I used to bank with HSBC and they had a feature which allowed customers to take a photo of the front and back of their cheque, upload it via their app and the cheque would be cleared within a couple days max.
Unfortunately the cheque pay in system with Monzo is the only thing I don’t like.
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First Direct have now released cheque imaging. Not a huge benefit for me as I can’t remember the last time I got a cheque but seems like a final missing piece of the jigsaw for an app only bank (Monzo).
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First Direct isn’t app-only.
And if you ever apply for an account you’ll see how quickly it buries you in paperwork.
It’s hardly innovative.
I meant for Monzo 
. I can see why you thought I meant FD. I’ve amended slightly
Ah sorry. Yeah, I can’t get my head round why Monzo doesn’t think this is a win.
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I think the answer is in @krr13’s original post.
It’s a nice feature, but in terms of customer benefit probably not the top priority. There are other things Monzo could improve that would have a significantly greater benefit for a significantly greater number of its customers.
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I do feel it’s a bit chicken and egg though.
The very few cheques that I get, I won’t even consider the “hassle” of posting it to Monzo. I’ll just walk to the bank at lunchtime and pay it in over the counter.
So Monzo would classify me as someone who has never paid in a cheque and might think I never will, but I would if I could pay it in with an image.
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Yes, no question in my mind that the demand for cheque deposits is higher than what Monzo “sees”. However I still don’t think it’s a significant use case. Cheque imaging makes sense for Monzo (and might be needed for business accounts as they grow, anyway), but I can’t see it being a top priority at the moment given how few cheques they vast majority of people receive.
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I’ve had one cheque in maybe the last 10 years. If I got one now, I’d just get my girlfriend to pay it into her account and transfer the wedge to my Monzo account.
Cheques are rare enough these days - and increasingly so - and the workarounds are easy enough that they won’t lose a huge amount of custom by not implementing it, and any custom they do lose will probably be offset by the money they’d save by not developing it as a feature.
I take the point that they’re not seeing the true demand through cheques that are sent to them, but if cheques are deposited elsewhere but the money ends up in a Monzo account, they don’t care.
It might mean a few people don’t go full Monzo for a while, but that’s a small price to pay to get other banks to do the leg work for money that mostly ends up in Monzo accounts anyway. That’s good enough in the short term while cheques die off.
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How (unless it’s a joint account with your name on it)?
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Good point! That just shows how long it’s been since I’ve paid a cheque in - I’d forgotten how they work!
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