Cheques are a thing of the past

In a statement issued late last year, the South African Reserve Bank informed the public that, “the issuing and the acceptance/collection of cheques will cease, effective from 31 December 2020.” At the time, most banks had already begun phasing out this form of payment, with clients making use of cheaper, more convenient electronic payment methods.

Verbal vs. written contracts for conveyancing

According to the Reserve Bank, several challenges associated with the use of cheques in South Africa led to the decision to discontinue them. These included:

  • a lengthy processing period
  • fraud perpetrated through the issuing of cheques
  • cheques as an expensive payment instrument
  • the restricted acceptance of cheques
  • declining usage
  • limited education and protection for the consumer
  • ageing interbank cheque processing infrastructure
  • impact of the coronavirus pandemic (COVID-19) outbreak

(Source: www.gov.za)

Electronic images of cheques issued prior to 31 December 2020 will still be made available to consumers. 

While many millions of South Africans have limited access to cellphones and the internet, and the cost of data is a very real consideration, most areas of the country have ATMs and alternative payment points enabling access to electronic methods of payment.

Anyone needing assistance with electronic payment options or information regarding the discontinuation of cheques is encouraged to approach their bank directly.

Follow Snymans on Facebook for more legal information, tips and news about property.

Recommended for you

Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

Buying and selling property – the implications for married foreign nationals[post_view before=""]

In a recent article, we looked at the question of whether foreign nationals are permitted to own property in South Africa. A related question is what happens when a foreign national, who has entered into a marriage outside of South Africa, wishes to buy or sell property. Let’s take a look.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

Foreign property ownership in South Africa[post_view before=""]

Can foreign nationals own property in South Africa? The short answer is yes. But before we explore this topic in any detail, let’s first define what we mean by foreign national – someone who is a non-resident, meaning that they are neither ordinarily resident nor meet the requirements of the physical presence test.

Read More
My name has changed - what happens to my property’s title deed?
Contractual Matters

Power of Attorney: Can it lapse?[post_view before=""]

A power of attorney is a useful tool that can be used in many situations. For example, an elderly parent who, due to their age, finds it difficult to attend to their affairs may decide to grant power of attorney to their adult child.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

Why identifying the ultimate beneficial owner matters[post_view before=""]

In the past, detecting funds from unlawful activities as they entered the financial system was relatively straightforward. However, with the dishonest among us increasingly making use of juristic or corporate entities to hide their true identities and introduce illicit proceeds into the system, it’s becoming more and more difficult for the relevant authorities to identify these funds. And it’s not only South African officials who find themselves in this position – the challenge cuts across international borders.

Read More
Minors and immovable property
Contractual Matters

How does divorce affect transfers in the case of joint ownership?[post_view before=""]

The end of a marriage can result in several administrative challenges, not least of which is tackling the joint ownership of immovable property. And while divorce can be a traumatic and emotional experience, with the proper legal advice, the transfer of ownership doesn’t need to be.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

Cheques are a thing of the past

In a statement issued late last year, the South African Reserve Bank informed the public that, “the issuing and the acceptance/collection of cheques will cease, effective from 31 December 2020.” At the time, most banks had already begun phasing out this form of payment, with clients making use of cheaper, more convenient electronic payment methods.

Verbal vs. written contracts for conveyancing

According to the Reserve Bank, several challenges associated with the use of cheques in South Africa led to the decision to discontinue them. These included:

  • a lengthy processing period
  • fraud perpetrated through the issuing of cheques
  • cheques as an expensive payment instrument
  • the restricted acceptance of cheques
  • declining usage
  • limited education and protection for the consumer
  • ageing interbank cheque processing infrastructure
  • impact of the coronavirus pandemic (COVID-19) outbreak

(Source: www.gov.za)

Electronic images of cheques issued prior to 31 December 2020 will still be made available to consumers. 

While many millions of South Africans have limited access to cellphones and the internet, and the cost of data is a very real consideration, most areas of the country have ATMs and alternative payment points enabling access to electronic methods of payment.

Anyone needing assistance with electronic payment options or information regarding the discontinuation of cheques is encouraged to approach their bank directly.

Follow Snymans on Facebook for more legal information, tips and news about property.