ECN Forum Forums General Topics of the Trade General Discussion Area Emperor's New Clothes

Geoff, you're right on many points.

First off, about checks: US readers will not know that the 'rules' for checks are quite different in the UK than here. In the UK, it's almost impossible to 'bounce' a check. Checks often circulate between businesses as if they were cash. A post-dated check is a common way to pay, and that check will circulate between businesses until the due date, when it will be presented -by anyone- to the bank for payment.

It's not like that at all in the USA. That the UK is moving away from checks is interesting.

Here, the taxman also frowns upon cash. Not only is the business at a much greater risk of an audit when it takes in a lot of cash business- it's almost impossible for the customer to 'write off' expenses unless there is some manner of paper proof.

Cash is really only important for homeowners paying trades for side jobs.
I do have some experience with that tho ;-)

Checks are a common payment method in France- but if you write a 'rubber' one, [ or overdraw on your card ], the bank will close your account and blacklist you with all the others. Thank goodness for my Amex, which is billed to my UK bank!

In the US bouncing checks and overdrawing your cards is a profit center (interest at 29.99% plus a fee). It is expensive to be broke here but if you have money, banking is free.

That was not lost on me many years ago and I consider what ever the minimum balance to get free banking as "zero" and go up from there.
They don't pay squat for the money they are holding but not having that money with them is very expensive.