An organisation wanted to pay me $400 to give a talk. I asked them to credit the payment directly into my bank account.
This is what actually happened.
1. I was asked to send a signed invoice by mail. They do not accept an invoice by e-mail.
2. I had to provide a photocopy of my bank statement for them to verify my bank account.
3. Three weeks later, they send a cheque to me by mail (in spite of verifying my bank account).
4. I have to mail the cheque to my bank to credit the payment.
The practice of this organisation is quite common in Singapore. They have still not woke up to the new world. They are still stuck to the old bureaucratic way of making payment by cheque.
My friend in China was surprised at our outdated practice in Singapore. Cheques are almost unheard of in China. All payments are made through bank transfer.
Wake up, Singapore. The world has changed. Why are we still using outmoded and expensive methods to make a simple payment?
I hope that people reading my blog will give the following suggestions to their bosses. You can take this suggestion as your own, and earn some merits:
1. Organisations can make payments directly to bank accounts
2. Banks can encourage and educate their business clients to adopt this new method
3. MAS and IDA can encourage the business community to adopt the more efficient methods.
Mr Tan, something to do with the audit trail I think. When I get my invoices processed, it's also the same. My Accounts department will start processing if I provide an email copy in advance, but they still need an original (i.e. signed) invoice before releasing the cheque.
ReplyDeleteAs for DDA payment, this has to be done through banks and my understanding is it's a hassle to arrange with the bank such a payment mode. Maybe there are extra charges or delays, I'm not sure. For one-time payments, perhaps it's much easier to pay by cheque.
Dear Eve+line,
ReplyDeleteWe are caught in the old ways of making payments. It could be the "audit trail" or "difficulty in making DDA" payment. So, many people continue to write cheques, post them, open the envelope, go to the bank, deposit into the account.
In many other "advanced" countries, the payee instructs the bank to make the transfer to the payor. The bank gives detailed information to the payor about the payment - sufficient for audit trail, etc.