News & insights

Access the latest CEPA developments, our case studies and publications

Sectors

Read about our portfolio of sectors and the type of work we conduct in each

About

Find out more about what we do in economic consulting and our company history

Careers

Learn more about working at CEPA, our latest vacancies and how you can contribute to our work

News & insights

Date: August 2015 | Client: Cheque and Credit Clearing Company | Sector: Financial services | Expertise: Regulation & competition

Economic assessment of the Future Charging Model for cheque processing

Following legislation in the Small Business Enterprise and Employment Act 2015, the C&CCC developed a plan to introduce  cheque imaging to the UK, following its successful roll-out in the US. This would make cheques easier to use, shorten the clearing cycle, and remove the need for regional cheque clearing centres.

Our assessment informed C&CCC on how the building and running costs associated with the ICS could be shared between its participants whilst also meeting ‘open access’ requirements outlined by the Payment Systems Regulator (PSR). CEPA drew on economic principles of funding and charging that are relevant for payments platforms, and also examined how charging principles are applied in other network industries. CEPA then assessed the proposed  charging structure for the new service based on criteria of efficiency (of build and of use)  ‘fairness’ and transparency. The assessment considered the specific characteristics of the UK payments environment in making its recommendations.

To find out more, please contact our experts listed below.

Mark Cockburn
Managing Director United Kingdom
Nick Hodges
Senior Consultant United Kingdom