How cheque clearing works: from paying in to money in your account
By SendPay Business · · 2 min read
Cheque clearing is the process banks use to move money from the account of the person who wrote a cheque to the account of the person who paid it in. In the UK it now works by sending an image of the cheque instead of the paper itself.
How clearing works today
- You pay a cheque in at a branch, a machine or by taking a photo in your banking app.
- Your bank sends an image of the cheque through the Image Clearing System.
- The writer's bank checks the cheque and whether there is enough money in the account.
- If it is approved, the money is released into your account, usually by the next working day.
Why a cheque can still bounce
The writer's bank can refuse a cheque if there is not enough money, if the details are wrong or if it suspects fraud. That is why sellers of expensive items are often wary of accepting cheques.
Cheques vs bank transfers
Cheques are now a small share of UK payments. Instant bank transfers are faster, cannot bounce once sent, and need no paper, which is why most people and businesses have switched.
Where SendPay fits
SendPay does not process cheques. A SendPay platform lets your customers send and receive transfers, pay by card and take payments by link, powered by licensed partners.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.