Australia to Phase Out Cheques by 2030

Occams Barber · Jun 16, 2023

7 JUNE 2023

Australia Phasing Out Cheques by 2030

(Australian) Treasurer Jim Chalmers announced on Wednesday morning that his government would be moving to phase out cheques by no later than 2030.

"We know that usage of cheques has been declining," he said.

"This is largely because digital transactions are easier, cheaper and more accessible. In fact, 98 per cent of retail cheques could be serviced through internet or mobile banking."

Cheques account for only 0.2% of all payments, according to figures from an Australian Banking Association (ABA) report.

Cheque processing is also costly with major banks charging between $7.50 and $15 to issue a check. Some banks also charge a fee for cheque cashing.

Based on 2022 data, 75% of consumer payments are now on credit/debit cards and only 0.2% by cheque:

Cheque: 0.2 per cent
Other: 12 per cent
Cash: 13 per cent
Credit and charge cards: 25 per cent
Debit cards: 50 per cent

More
Cheques will be phased out by 2030 as mobile wallet use sky-rockets - ABC News

OB

Servus · Jun 17, 2023

The only one I write is for rent. I've had direct deposit for ages.

Larniavc · Jun 17, 2023

Occams Barber said:
View attachment 332417
7 JUNE 2023

Australia Phasing Out Cheques by 2030

(Australian) Treasurer Jim Chalmers announced on Wednesday morning that his government would be moving to phase out cheques by no later than 2030.

"We know that usage of cheques has been declining," he said.

"This is largely because digital transactions are easier, cheaper and more accessible. In fact, 98 per cent of retail cheques could be serviced through internet or mobile banking."

Cheques account for only 0.2% of all payments, according to figures from an Australian Banking Association (ABA) report.

Cheque processing is also costly with major banks charging between $7.50 and $15 to issue a check. Some banks also charge a fee for cheque cashing.

Based on 2022 data, 75% of consumer payments are now on credit/debit cards and only 0.2% by cheque:

Cheque: 0.2 per cent

Other: 12 per cent

Cash: 13 per cent

Credit and charge cards: 25 per cent

Debit cards: 50 per cent

More
Cheques will be phased out by 2030 as mobile wallet use sky-rockets - ABC News

OB

I’ve not used a cheque for at least 15 years. I haven’t used cash in over 5 years, I reckon. Having wads of paper or a bunch of coins jingling around would be really annoying.

DaisyDay · Jun 17, 2023

Certain utilities don't charge for processing checks, but do charge for EFTs. Some local governments also require checks or money orders for fees. It's weird.

For transferring money internationally, crypto seems to be the way to go (cautiously).

Servus · Jun 17, 2023

I remember back in the late 90s a radio host complaining about people holding up the line in the grocery store because they were writing a check, instead of using a debit card. And I remember that was kind of annoying.

Occams Barber · Jun 17, 2023

Ordinary Christian said:
I remember back in the late 90s a radio host complaining about people holding up the line in the grocery store because they were writing a check, instead of using a debit card. And I remember that was kind of annoying.

I once had a chequebook. From memory I think it was about fifty years ago. The only person I know of who still used cheques was my father. He was still using them when he passed on at 100 a couple of years ago.

These days I don't even use cash apart from the coin-in-the-slot at the car wash. I could use a card, but I like to hear the 'thunk' as the coin drops. ^_^

OB

Occams Barber · Jun 17, 2023

DaisyDay said:
Certain utilities don't charge for processing checks, but do charge for EFTs. Some local governments also require checks or money orders for fees. It's weird.

For transferring money internationally, crypto seems to be the way to go (cautiously).

I've had to transfer a few (large) amounts to the US plus get a few thousand back.

I used my (Australian) bank and the sender used his US bank.

I wouldn't touch crypto with a barge pole. Apart from being dubious, it involves three separate currency switches (Australian$ to Crypto to US$) each incurring a commission or fee plus exchange rate complications.

OB

zippy2006 · Jun 17, 2023

This logic leads towards abandoning checks and cash and relying entirely on digital transactions such as credit and debit cards. In the end that would be a great burden on the poor and a great win for credit card companies, whose profit comes in large part from reselling user data.

Occams Barber · Jun 17, 2023

zippy2006 said:
This logic leads towards abandoning checks and cash and relying entirely on digital transactions such as credit and debit cards. In the end that would be a great burden on the poor and a great win for credit card companies, whose profit comes in large part from reselling user data.

Credit cards have been around for years, and don't replace cheques so, if there is a problem, it isn't the loss of cheques.

In fact, using a debit card is cheaper than using a cheque given the cheque processing fees.

I think you're just looking for something to complain about. :yawn:

OB

zippy2006 · Jun 17, 2023

zippy2006 said:
This logic leads towards abandoning checks and cash and relying entirely on digital transactions such as credit and debit cards.

The Cashless Future is Here. So is Big Brother. | The Hill

Servus · Jun 17, 2023

Occams Barber said:
I think you're just looking for something to complain about.

My complaint is the way you people spell check.

Occams Barber · Jun 17, 2023

zippy2006 said:
The Cashless Future is Here. So is Big Brother. | The Hill

The post was about Australia Zip - not the US.

Cheque usage is already down to 0.2%. Cheques are practically non-existent here.

Cash is down to 13% of transactions and rapidly dying out. We are already big card users (75% of transactions).

Debit cards here are far cheaper than cheques so the 'poor people' (who don't use cheques anyway) will save money.

Card usage has been high here for years so pulling cheques (and potentially cash in the long term) won't make much difference.

Once again - we're not the US.

Transactions by Type

Cheque: 0.2 per cent
Other: 12 per cent
Cash: 13 per cent
Credit and charge cards: 25 per cent
Debit cards: 50 per cent

OB

Occams Barber · Jun 17, 2023

Ordinary Christian said:
My complaint is the way you people spell check.

According to my dictionary I have the spelling exactly right. If you Americanos wish to mess up the English language, who am I to complain as long as you keep the problem to yourselves. ^_^

cheque
[tʃɛk]

NOUN

an order to a bank to pay a stated sum from the drawer's account, written on a specially printed form:

ThatRobGuy · Jun 17, 2023

I haven't paid with a check for anything in years and years lol.

In fact, I still have the book of checks I got when I switched to a new bank a decade ago that are still in the plastic wrap.

If the US did the same as AUS is doing, it would impact me as much as if they said they were phasing out pagers.

ThatRobGuy · Jun 17, 2023

zippy2006 said:
This logic leads towards abandoning checks and cash and relying entirely on digital transactions such as credit and debit cards. In the end that would be a great burden on the poor and a great win for credit card companies, whose profit comes in large part from reselling user data.

You may have a point if you were only talking about cash.

Checks on the other hand don't offer much of a benefit (and are actually less secure than paying electronically)

zippy2006 · Jun 17, 2023

ThatRobGuy said:
You may have a point if you were only talking about cash.

Checks on the other hand don't offer much of a benefit (and are actually less secure than paying electronically)

The only rationale on offer is, "If the percentage-use is low, let's get rid of it." Ergo, "This logic leads towards abandoning checks and cash and relying entirely on digital transactions..." Myopia.

Now perhaps there is a better case to be made against checks than against cash, but it's not clear to me that the people making these decisions have a very wide breadth of view.

Occams Barber · Jun 17, 2023

zippy2006 said:
The only rationale on offer is, "If the percentage-use is low, let's get rid of it." Ergo, "This logic leads towards abandoning checks and cash and relying entirely on digital transactions..." Myopia.

Now perhaps there is a better case to be made against checks than against cash, but it's not clear to me that the people making these decisions have a very wide breadth of view.

It's a national trait Zip.

For good or ill we have a rep for being early adopters of technological change. We just like new stuff with lights and buttons or swipeable QR codes. If we get "Myopia" you can bet we'll all get super dooper electronic goggles to fix it.

(and in both absolute and proportional numbers we have a lot less 'poor' people to worry about than the US)

Why Australia - Benchmark Report - Innovation, technology and skills

Australia is home to a workforce that is skilled, talented and highly motivated.

www.austrade.gov.au

OB

zippy2006 · Jun 17, 2023

Occams Barber said:
For good or ill we have a rep for being early adopters of technological change.

I have never heard this. I don't think the rest of the world views it that way. And I also don't see how the absence of checks or the monolithic reduction of consumer options counts as some sort of technological advancement.

Bob Crowley · Jun 17, 2023

Cheques can occasionally be useful for large payments eg. paying for a car. I'm always a bit wary about electronic transactions in that if I make a mistake and type in a wrong account or BSB number, I'm concerned the money could go where it is not supposed to go.

That said in the last two years I've issued two personal cheques, one of whom was to a specialist who refused to accept electronic payments, so it was either cash or a cheque.

In the same period I've probably done a hundred BPay payments and some transfers.

Occams Barber · Jun 17, 2023

Bob Crowley said:
Cheques can occasionally be useful for large payments eg. paying for a car. I'm always a bit wary about electronic transactions in that if I make a mistake and type in a wrong account or BSB number, I'm concerned the money could go where it is not supposed to go.

Last year I made some large transfers to the accounts of each of my two sons and three grandkids. Since, like you, I was concerned about errors, I first transferred a small amount and verified with each of them that it had arrived safely. Doing this meant I had the recipients' details recorded in my online account. The following day I transferred the balances using the existing records.

I did something similar when buying a car a couple of years ago.

When you think about it there are also risks associated with cheque payment (loss, damage, wrong account)

OB

Australia to Phase Out Cheques by 2030

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