Electronic Cheque Clearing is the introduction of automation into the processing of clearing cheques. The electronic submission and settlement of imaged local cheques between Commercial Banks in Trinidad and Tobago will replace the current manual exchange and settlement of physical TTD-denominated cheques.
There are several benefits of Electronic Cheque Clearing such as:
- Enhanced effectiveness in the cheque-clearing process
- Improved fraud prevention capabilities via customer cheque verification
- With the improved cheque security features, more secure cheque processing
- Lower processing fees for cheques (paper handling)
- Where the bank provides this service, the opportunity to view additional information on online-processed cheques, such as image-based statements
Why is the Cheque Clearing Process being changed?
All Commercial Banks can now electronically exchange cheque images and related transactional data in real-time thanks to the automation of the manual and paper-based process. The procedure will replace the necessity that physical cheques be exchanged the following day with the exchange of clear digital photographs of actual cheques that were photographed at your bank. An Automated Clearing House (ACH) solution will be used to execute these transactions and the related credits or debits to your personal and business accounts. When fully operational, this system will establish the foundation for more effective electronic payment options.
What are the expected changes?
These are the changes to expect:
- New Canadian Payments Association (CPA) standardized format of and features on cheques.
- The replacement of physical cheque returns with cheque images of returned cheques.
- Cheque images will be exchanged daily, via electronic files through the Automated Clearing House and forwarded to Participating Banks
Why are the cheques being changed?
All changes were adopted to digitize Trinidad & Tobago’s cheque-clearing system. Instead of physically transporting the cheques between institutions, the cheques must be image-friendly so that all Commercial Banks can interchange data electronically.
Will there be any change to the required standards for how cheques are written?
Yes, the changes include:
- Cheques will now be required to be written in black or blue coloured ink.
- Write only in specified locations- do not obscure any key fields
- Cheques with errors/ alterations in mandatory fields (date, payee name, words and figures, signatures) will not be accepted for processing, and as such these should not be issued to payees.
- Signatories’ initials to error/alterations on cheques will no longer be accepted and as such these should not be issued to payees.
How will customers be advised of the new CPA standard for cheques?
Commercial Banks will raise awareness of the Electronic Cheque Clearing via various channels. These may include print or radio mass media ads; digital communications via website and social media; direct communications via statement messages, emails or letters; or in-branch communications.
Further details/clarifications can be sought via your Account Manager at your respective Commercial Bank.
View the following video to learn more about Electronic Cheque Clearing:
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