Picturing Faster Payments: Cheque Imaging

The Government recently unveiled draft legislation to modernise the payments system by introducing cheque imaging in the UK:

• An electronic image is created of both faces of the cheque.
• There will be no need to deliver the cheque itself to the payer's bank.
• The change will also apply to bills of exchange, promissory notes and similar paper instruments, such as travellers' cheques.
• HM Treasury will be able to make regulations deeming the collecting bank (i.e. the payee's bank) liable to pay compensation for particular losses arising from the electronic presentment of cheques. It currently favours strict liability, but could allow lower compensation where the victim's behaviour has contributed to the loss.