For customers with accounts in the UK: updated GBP cheque clearing timescales

Last updated: 27 August 2018

Following legislative change set out in the Small Business, Enterprise and Employment Act 2015, the way Sterling (GBP) cheques are processed in the UK is changing. All UK banks will be required to adopt a digital cheque imaging solution for their customers. This solution will allow images of cheques to be exchanged between banks, therefore removing the need for the transfer of physical paper items to central clearing centres for processing.

What’s new?

In accordance with this legislation, HSBC is introducing a digital cheque imaging service to its customers in phases throughout 2018. This means you will receive full & final credit for cheques paid into your account on the next business day following the day of deposit, subject to the cut-off time at the branch where you make the deposit or processing centre. Since the digital cheque imaging service is being rolled out in phases, the processing time may vary from branch to branch.

What’s changing on HSBCnet?

As a result of the funds been available on the next business day of the deposit, you will see the below changes in your reporting:

End of Day reports – Day of Deposit
Currently, cheque deposits are shown as an un-cleared balance on the day of the deposit. Once the new processing is implemented, cheque deposits will no longer be posted on the day of the deposit.
End of Day Reports – Day After Deposit
As a result of new end-of-day aggregation of deposited intraday cheques, you’ll see a single entry of the cleared balance for the total of your cheque(s) and individual entries for any unpaid cheques.
Intra Day Reports – Day after Deposit
With the new processing, transactions will be posted individually as cleared funds based on the pay/no pay decision by the paying bank.

What’s next?

We’ll be providing more information about the new digital cheque imaging service when it’s introduced on HSBCnet later in 2018.

Find out more

For more information about cheque processing in the UK, contact your HSBC UK representative.