Old Checks Will No Longer Be Valid After April 30, 2024
(SPOT.ph) Heads up to those who like to transfer money the old-fashioned way: Older checks will no longer be accepted for clearing starting May 1 as it will be replaced with a new design by the Philippine Clearing House Corporation (PCHC).
PCHC’s adoption of a new check design is set to “enhance check processing capabilities by providing banks better optical character recognition features that are needed for an automated check verification system.” This initiative was initially planned for May 2023, but was delayed for another year to allow individuals and businesses more time to transition from their existing supplies of old checks under Memo Circular No. 23-040.
The upcoming changes include a more structured layout with boxed spaces for dates, amounts, and signatures, and the relocation of the peso sign to enhance readability for automated systems. The date on checks must also be formatted in MM-DD-YYYY, aligning with international standards to minimize errors in financial transactions.
Old check formats have no boxed spaces for the issue date, amount in figures, and the issuer signature. If you have a check dated April 30 or earlier, you can still have it cleared as long as it is presented to the bank before the 180th day from its issue date.
Changes in the new check format
PHOTO BY Philippine Clearing House Corporation
The PCHC’s new check design includes the following key modifications:
Date format
The checks will now feature a boxed date format requiring dates to be written in MM-DD-YYYY format. An individual white box is provided for each character of the date of issuance. The change is meant to standardize date entries and avoid misinterpretations.
Placement of the peso sign
The peso sign will be moved outside the box where the amount is written. This adjustment is intended to prevent any confusion in reading the check amounts.
Signature box
A signature box will replace the traditional signature line. This is designed to standardize the location and size of the signature to improve readability.