Over the centuries, paper cheques have been a mainstay method of payment. In fact, they date all the way back to the 9th century –back then, merchants relied on cheques to exchange funds, according to the Economic Review. And for much of the 20th century, they were the most widely used method of payment.
From paying for groceries at the supermarket and compensating the babysitter after her shift, to gifting funds for one’s birthday, there’s no doubt about it that cheques are handy and convenient.
Got mail? If you’re used to having your bills, letters and cards dropped off at your doorstep, you better prepare to kiss that convenient and personalized service goodbye. Within the next five years, Canada Post will slowly be phasing out door-to-door delivery of all regular mail for urban residents. Instead, your mail will be sent to a community mailbox, which is expected to reduce significant financial losses and a burden on taxpayers — a projected $1- billion deficit by 2020 if a major change isn’t made.
MICR TONER – How can cheque printers, software providers and organizations that produce their own cheques confirm that their new versions meet all of the new specifications?
Cheque printers, software providers and companies that print their own cheques are strongly encouraged to provide pre-production samples to their financial institution to ensure that they meet the requirements of the new standard. These organizations should contact their financial institutions for more information about the testing process and timelines.
Does magnetic ink still need to be used in the MICR line on cheques?
Yes, magnetic ink must be used in the MICR line, as automated processing equipment still relies on magnetic ink to read data from the MICR line.
The Canadian Payments Association (CPA) has announced new specifications that all financial institution members and consumers must conform to.
The CPA has changed the deadline to use cheques with the new layout standards. It has now been extended beyond the end of June 2007.
Ever since the economy took a dive business owners have been seeking new ways to reduce business costs. They spend countless hours negotiating with their suppliers and discussing options with their accountants to reduce their costs wherever they can.
Every dollar saved is an extra dollar going right to the bottom line of the company.
An often over looked business expense is a companies cheques. For years and years businesses have been purchasing cheques directly from the banks assuming the banks actually manufactured them and that they had no choice in suppliers.
The short answer is YES, but lets learn a little bit about what your bank is really doing behind the scenes.
Many small businesses continue to purchase there companies manual cheques and computer cheques directly through their financial institutions. Often businesses dont realize that they are not required to purchase cheques from the bank, as in almost all instances the bank doesn’t actually manufacture the cheques themselves.