Important changes on cheque fees

In line with the announcement by the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) on 28 July 2023, the Bank will be ceasing all corporate cheques by end 2025, while clearing cheques for retail users will continue for a period beyond 2025.

In the interim, new cheque clearing fees will be introduced for all SGD- and USD-denominated cheques processed with effect from 1 November 2023.

As an alternative payment method, we strongly recommend all our clients to make digital payments by PayNow, FAST, GIRO or Telegraphic Transfer via Online Banking, SC Mobile or Straight2Bank (S2B). This is in line with Singapore’s Smart Nation vision where everyone has access to fast, simple, and secure payments. You may refer to the steps on how you can pay digitally here.

If you have yet to register for Online Banking/SC Mobile/S2B, you may follow the steps below:

• For Individual clients
• For Corporate and Business Banking clients

FAQs

1. Which parties in a payment transaction will incur cheque clearing fees when a cheque is used?

Payers

Effective 1 November 2023, the Bank will charge Payers (Standard Chartered corporate and individual clients) a cheque clearing fee for all cheques. (E.g., Payer issues a cheque to Payee. After Payee deposits the cheque for clearing, the new fees will be applied on Payer, regardless of whether the cheque was successfully cleared or rejected.)

Payees

Effective 1 November 2023, Corporate, Commercial and Institutional Banking (CCIB) clients who are Payees will also incur cheque clearing fees when depositing cheques and Cashier’s Orders with Standard Chartered Bank (Singapore) Limited.

There will be no fees for Payees for Consumer, Private and Business Banking (CPBB) clients until further notice.

2. What is the fee that I will be charged for issuing cheques?

We will provide more information on cheque clearing fees for cheques before the implementation on 1 November 2023.

3. Will there be any waivers for certain user groups, such as those facing difficulties transiting to alternative payment methods?

We will consider waiving cheque charges for certain clients in exceptional circumstances, to be determined on a case-by-case basis.

4. Are there alternative payment methods? Where can I find information on alternative payment methods?

Yes, clients can make digital payments by PayNow, FAST, GIRO or Telegraphic Transfer via Online Banking, SC Mobile or S2B which are fast and secure.

More details on alternative payments can be found here.

5. In view of the change, will the cost of a chequebook increase as well?

We will provide more information on the costs of chequebooks before the implementation on 1 November 2023.

6. How will the cheque clearing fees appear in my statements after the implementation from 1 November 2023?

For CPBB clients

Cheque clearing fees will be consolidated daily as a lump sum in the statement upon the processing of a cheque. (E.g., Three cheques are processed on 5 November 2023. The consolidated fee will be reflected on 6 November 2023 with the narration of “Cheque Clearing Fee”.)

For CCIB clients

Cheque clearing fees will be reflected in the statement as a consolidated cheque clearing fee for the statement period as per your current billing frequency (E.g., Clients on a monthly billing cycle will have the consolidated cheque clearing fees reflected in the billing statement received at the end of the month.)

7. When will banks eliminate retail cheques?

The Bank will continue to encourage both corporate and individual clients to adopt alternative payment methods to make or receive payments before a time that retail cheques are to be eliminated.

To provide a longer runway to switch to alternative payment methods, individual clients will be able to use cheques for a period beyond 2025.

8. If Payer pays Payee with Cashier’s Orders, will Payer incur cheque clearing fees?

Cheque clearing fees are not applicable for the issuance of Cashier’s Orders.

The existing fees for Cashier’s Order issuance remain unchanged.