Cheques will no longer be accepted at Bank Windhoek

TJIPENANDJAMBI KUHANGACHEQUES will no longer be accepted or processed at Bank Windhoek branches across the country from 1 July 2019.

This was announced by Bank Windhoek’s chief operating officer, Franco Pretorius, in a press release on Tuesday.

Pretorius said the final date for processing cheques as a means of payment at Bank Windhoek would be 30 June 2019.

This is because the arrival of mobile and online banking has resulted in the usage of cheques as a means of carrying out a transaction to decline over the years. The announcement by the bank comes after the chairperson of the Bankers Association of Namibia, Vetumbuavi Mungunda, announced last month that the banking industry will phase out cheques as a payment instrument by June 2019. “Cheques are also more costly for both the issuer and acquirer, in comparison to electronic payment methods,” the press release stated.

Except for cheques, other methods of payment will include cash, debit and credit card payments, wire transfers locally and internationally, electronic fund transfer payments using internet banking, as well as online payment services.

Pretorius said the bank would offer its customers a suite of alternative payment methods, with a vast network of ATMs and point of sale presence.

“Our digital offering includes iBank, cellphone banking, mobile app, easywallet and GoPay for fuel purchases, and of course, there is the Bank Windhoek visa debit and credit card offering, which can be used internationally,” he added.

The Payment Association of Namibia (PAN) responsible for managing the national payment system in Namibia is recognised and licensed by the Bank of Namibia as per the Payment System Management Act of 2003 no 18.

In a statement, the association also urged for the cooperation of all banking institutions in Namibia, and to work together in promoting efficient alternative payment methods.

This will ensure a smooth transition from paper-based payment instruments to a cheaper alternative payment method.

Bank Windhoek’s public relations manager, André le Roux, also confirmed to yesterday that the use of cheques has indeed been on the decline for some years, both at the point of sale transactions where credit cards and debit cards are increasingly preferred, as well as third-party payments such as the payment of bills.

Le Roux added that the decision to phase out cheques as a method of payment was an industry decision with which all banks need to comply. According to him, cheques pose a higher risk due to fraud and theft.

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