(UPDATE: The PCHC has deferred implementation of the new check design to May 1, 2024. See my update HERE.)
If you have a checking account, it is time to look at your checkbook/s. By May 2, 2023, checks in the old format will no longer be accepted for clearing.
The new check format will now have boxes in the date field so that the date can be entered in MM-DD-YYYY format. The signature area and peso amount areas will also have boxes. The peso sign will now be found outside the area for the amount.
Here is an example of the new check format which I got from a Metrobank advisory.
What is the purpose of the check format change?
According to the memo from the Philippine Clearing House Corporation (PCHC) below, the purpose is to standardize the writing of the issue date on the check. Currently, there is no standard so people write the date in different ways. I think they will be using optical character readers or some form of scanning process to speed up clearing so there should only be ONE FORMAT for the date.
Who are affected by the change?
Everyone with a checking account, whether you are in business or an individual, will be affected. The banks will only accept the old format till the last banking day of April 2023 (May 1 is a holiday and May 2 is when the new change takes effect).
Are there any exceptions?
Item 4 of the PCHC memo lists some exceptions that will still allow checks in the old format to clear beyond May 2, 2023. I prefer not to take any chances and will just start using checks with the new format beginning May 2.
If you are currently holding on to postdated checks (PDCs), you can ‘warehouse’ or deposit these PDCs with your bank before May 2, 2023. Make sure these are stamped ‘Warehoused’ by the bank so it can still be accepted for clearing. This will save you the trouble of going back to the issuer to get replacement checks with the new format.
Reorder your checks NOW!
You still have a couple of months to reorder checkbooks in the new format but I strongly recommend that you do it now instead of waiting till the last minute. It normally takes a few weeks from the date of reorder for checks to be ready but since this change affects so many people and companies, there might be delays if the banks are deluged by reorder requests. You do not want to run out of checks if it is crucial to your business or personal activity.