New UAE App Lets You Know About The Bounce Cheque
A new app launched in the UAE on Tuesday allows both businesses and individuals to instantly know if a cheque issued through a UAE-based bank is likely to bounce.
Launched by Al Etihad Credit Bureau (AECB), Marwan Ahmed Lutfi, CEO of AECB, stressed that it has now become highly important that people assess the risks when they receive the cheques.
Once users have downloaded and registered, they can scan the cheque image or enter the details manually. The app is available for both iOS and Android devices.
The ChequeScore predicts the likelihood of a cheque to bounce, with a color-coded system. Green indicates a low probability of a cheque bouncing; amber is medium; while red indicates high probability. It also gives a score ranging from 1 to 99 percent to indicate the probability of the cheque bounce in the next nine months.
The UAE Central Bank data showed that 21 million cheques were issued in 2021 with an average value of Dh51,000. Last year, cheques submitted by individuals and companies worth Dh41.6 billion bounced, making up around three to four percent of the total.
“Once the score is known, the onus is on the receiver’s appetite for risk to accept the cheque. Concurrently, the one providing the cheque should ensure that they have maintained a positive payment behavior history as not doing so would now be showing instantaneously,” added Lutfi.
The app has been launched to help to lower the number of bounced cheques and provides a push for financial responsibility as that previous element of criminalization has been removed.
“ChequeScore will help reduce the number of bounced cheques in the UAE. Last year, bouncing a cheque was a criminal offense; however, with the new law decriminalizing this at the beginning of this year, it has become imperative that UAE businesses and individuals assess the risks associated with cheques they have on hand,” added Lutfi.
Prior to the release of the app, a trial run was conducted for more than 11,000 cheques with a total value of Dh788 million where cheques were scanned through the application.
Lutfi said the trial run provided an idea of how receptive businesses were to this product as more than 6,000 users signed up during the trial period. “In the same period, we have seen cheques as little as Dh500 and as large as Dh100 million successfully scored through ChequeScore,” he added.
To Get More Information Contact Us.