Finances

June 24, 2024 Published by Toronto and Area Chapter - By Katherine Sebben

It’s My Opinion That Paper Cheques Should Be Put to Rest

From the Spring 2024 issue of CCI Toronto Condovoice Magazine.

If I Was So Sure That Cheques Were A Thing Of The Past, Why Did I Need A Cheque Book?

“Uh, how do I get a cheque book?” I nervously asked a customer service representative of my bank over the phone. I was 22 years old and embarrassed that I knew nothing about the process of writing and using paper cheques. I needn’t have been nervous at all though, as the customer service rep (who I surmise was around my age if not younger), on the end of the phone line was just as baffled as I was: “I actually need to look into that for you, I’ve never been asked that before!” they replied. With this reply the bank representative was confirming what I already knew deep down; paper cheques are rightly decreasing in popularity.

You may be wondering, if I was so sure that cheques were a thing of the past, why did I need a cheque book? At the time, I was renting a condo from an elderly landlord who vehemently felt that cheques were the best way to collect rent. My landlord insisted that this was the most secure and easiest method of payment. Anyone who paid their rent using another method of payment got an earful each month. Tired of being lectured, I succumbed to my landlord's rants and began using paper cheques. It’s been several years since I lived in that apartment, and I haven’t touched my cheque book since. To tell you the truth I don’t even know where it is.

After moving, I had written off my landlord’s thinking as simply a beloved eccentricity of old age. As such, in getting more acquainted with the operations of many condo corporations, I was absolutely gob smacked to learn that many board members are still signing cheques! It seems, in my opinion, to still be the preferred method of payment for this industry. With all the advancements in payment technology, why are board members still coming into the office to manually sign paper cheques? To me, this seems inconvenient and ridiculous. I foresee this being a major detractor in attracting younger owners to become board members. I have no desire to sign a cheque, especially when I know there are other methods of payment that could be leveraged.

Surely condo boards and management companies aren’t so behind the times that they believe, like my former landlord, that cheques are a secure and easy method of payment! I find this train of thought baffling. Think back to when you were school, how easy was it to forge your parent’s signature on a note when you needed to leave class a little early? It was almost too easy. Thankfully, a little youthful trickery has limitations, but when signing cheques, the impacts are significantly larger. How can we protect our condo corporations from fraudulent payments when we are still paying our vendors with cheques? In my personal life, Electronic Funds Transfers (EFTs), are a way more popular method of payment, and as no signature is required it seems to be a perfectly secure method of payment.

Security aside, cheque payments are not easier! I fail to understand how waiting for a cheque to be printed/written, and then having a board member come in person to sign said cheque is easier than using an electronic form of payment. What if the signing board member is on vacation? What if there is another pandemic that requires isolation? How are cheques going to be signed in a timely manner? Board members have a duty to execute timely payments so the corporation can continue to operate efficiently. I think it is important to prioritize ease of payment approval so board members can carry out this duty easily. In my opinion, cheques do not allow for this. It would be best to consider alternate methods of payment. I’m shocked there are still vendors who even accept cheques as a method of payment. It is not easier for the vendors either! Cheques result in waiting longer to be paid, and the inconvenience of having to take extra steps to cash the cheque into the bank account. Why are vendors not demanding electronic payments as well! Condo boards could likely improve relations with vendors by paying through electronic methods, as it would result in faster payments for vendors!

Based on my personal experience, cheques are becoming a thing of the past. As previously mentioned, I haven’t touched my cheque book in years. If this is true, why are condo boards still clinging so tightly to this method of payment? Are there really some board members who want to sign cheques? It is my opinion that it would be easiest to adapt to the times and put those paper cheques to rest. There really is no need to use paper cheques, time to embrace what is current. Myself, and the trees, will thank you!

Katherine Sebben has been working in the software industry for over 4 years. In her most recent role at CondoWorks, she helps property management companies navigate transitions to automated solutions, particularly for finance departments