The days of cashing cheques, crossing cheques and – thankfully – cheques that “bounce” are over for good. As of January 1, cheques are no longer recognised as a method of payment in South Africa.
The SA Reserve Bank, the Payments Association of SA, the Banking Association of SA and the Financial Sector Conduct Authority officially announced the death knell for cheque transactions late last year. No cheques may be issued any longer, although some banks will still honour cheques that were deposited before December 31.
The use of cheques has declined sharply over the past few years, as digital payment methods such as electronic funds transfers and debit cards have become more convenient and cheaper.
A lengthy processing period;
Cheques are an expensive payment instrument;
Cheques are not accepted everywhere;
Less people are using cheques;
Limited education and protection for the consumer;
Ageing interbank cheque processing infrastructure; and
The impact of the coronavirus pandemic outbreak.
South African banks will not accept any cheques for depositing or cashing after 31 December 2020. According to FNB, using cheques has been declining by 30% annually and during level 5 of the lockdown, volumes decreased by 80% as customers adapted to digital platforms. Cheque payments in South Africa contribute less than 0.1% to the total ecosystem in the country.
“Cheques have been one of the most treasured payment methods by some customers and symbolised a different era of innovation. As a result, their necessary discontinuation is a nostalgic moment for us and our customers. However, we believe the future of payments is even more exciting for all of us,” says Jacques Celliers, c
JOHANNESBURG,
(CAJ News) – A BANKING executive has hailed the impending end of cheques is a historic moment for South Africa.
By January 1, 2021, individual consumers and businesses will no longer be able to cash cheques in Africa’s most advanced economy.
“Cheques have been one of the most treasured payment methods by some customers and symbolised a different era of innovation,” said FNB Chief Executive, Jacques Celliers.
“As a result, their necessary discontinuation is a nostalgic moment for us and our customers, however, we believe the future of payments is even more exciting for all of us.”
Celliers disclosed FNB issued its last cheque book in September this year but the journey to migrate its customers to safer and efficient digital payment methods had been running for years.
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Festive online trading fraud alert for SA consumers
By Mwangi Githahu
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Cape Town - As the festive shopping season approaches, the Financial Sector Conduct Authority (FSCA) and the South African Reserve Bank (SARB) have issued a warning on the use of instant electronic funds transfer (EFT) online payment services offered at e-commerce stores.
After consultations with the Payments Association of South Africa (Pasa), the two authorities issued a joint statement that said: “Consumers should be aware of the risks associated with the use of instant-EFT online payment services offered at stores which facilitate the purchase and sale of goods or services via the internet.”