chequebased

Chequebased is an adjective used to describe payment systems, economies, or business practices that rely predominantly on cheques as the means to transfer funds and settle obligations. The term reflects a traditional or historical orientation, especially in countries where cheque use remains substantial due to legacy infrastructure, bank networks, or regulatory comfort with paper-based instruments. In a chequebased framework, transactions move from payer to payee primarily through the issuance, endorsement, and clearing of cheques rather than through real-time electronic transfers or card payments.

A typical cheque-based payment involves the payer writing a cheque, the payee presenting it to their bank, the cheque being routed through a clearing system, funds debited from the payer's account and credited to the payee's account, often with float buffering.

Regional variations: Historically prevalent in the United Kingdom, Canada, and other Commonwealth countries, with cheques widely used in the US as well, though the spelling and conventions vary ("cheque" vs "check").

Advantages and challenges: Advantages include familiarity and straightforward documentation; challenges include slower settlement, processing costs, risk of non-sufficient funds or fraud, and dependence on physical instruments.

Contemporary relevance: While many economies have shifted to real-time payments and card networks, chequebased elements persist in certain niches and legacy institutions; some organizations continue payroll or supplier payments by cheque where electronic alternatives are limited.

See also: Cheque, Check, Clearing house, Payment system.