{"id":13816,"date":"2025-08-20T19:39:24","date_gmt":"2025-08-20T11:39:24","guid":{"rendered":"https:\/\/dollarsandsense.sg\/business\/?p=13816"},"modified":"2025-08-30T11:15:39","modified_gmt":"2025-08-30T03:15:39","slug":"replacing-physical-cheques-complete-guide-to-electronic-deferred-payments-edp-edp","status":"publish","type":"post","link":"https:\/\/dollarsandsense.sg\/business\/replacing-physical-cheques-complete-guide-to-electronic-deferred-payments-edp-edp\/","title":{"rendered":"Replacing Physical Cheques: Complete Guide To Electronic Deferred Payments (EDP & EDP+)"},"content":{"rendered":"\n

It\u2019s 2025 and it might shock some people to learn that paper cheques are still being used today. First used in the 1700s, paper cheques can feel like an outdated feature in the digital banking system we live in today.<\/p>\n\n\n\n

That is, until now. As part of Singapore\u2019s transition towards more innovative e-payment solutions, physical cheques will be phased out from 2025. <\/p>\n\n\n\n

For a start, banks will begin to cease SGD cheque book issuance from 1 July 2025. By 31 December 2025, all banks will stop issuing SGD cheque books and discontinue SGD bulk cheque services. Processing of corporate cheques will be extended for a year, up to 31 December 2026. From 1 January 2027, corporate cheques will no longer be accepted by all banks.<\/p>\n\n\n\n

Individuals will still be able to use cheques for a period after the 31 December 2025 deadline for corporates.<\/p>\n\n\n\n

While many corporates and individuals have already switched to electronic transfers \u2013 like PayNow and FAST \u2013 there’s a group of users (especially in business transactions) who still rely on cheques for one specific reason: delayed payment.<\/p>\n\n\n\n

To address this, the authorities have devised what\u2019s known as Electronic Deferred Payments (EDP) and EDP+. Here\u2019s a complete guide to these schemes and how they will play a crucial part in replacing physical cheques.<\/p>\n\n\n\n

Why Are Physical Cheques Being Replaced?<\/strong><\/h3>\n\n\n\n

The decline in cheque usage is nothing new. According to data from the Association of Banks in Singapore (ABS), Singapore Dollar (SGD) cheque volumes have fallen by more than 80%<\/a> from 2016 to 2023.<\/p>\n\n\n\n

Processing physical cheques is costly (requiring manpower + time) and inefficient compared to digital alternatives (as they are more prone to human error). But despite the fall in usage, certain industries, such as property, corporate payments, and some contractual transactions, still depend on cheques.<\/p>\n\n\n\n

That\u2019s mainly because they allow you to issue payment today but have it cleared on a future date. This is common in situations like options fees for property transactions, deposits for events or services, and post-dated payments to suppliers under contractual agreements.<\/p>\n\n\n\n

Meanwhile, PayNow and FAST transfer funds are instant and don’t allow for this kind of delayed settlement. As a result, EDP was designed to fill that gap and address that need.<\/p>\n\n\n\n

Read Also: Banks Will Stop Issuing Corporate Cheques By 2025: 4 Things Businesses Need To Know<\/a><\/em><\/strong><\/p>\n\n\n\n

What Is Electronic Deferred Payment (EDP)?<\/strong><\/h3>\n\n\n\n

EDP is essentially the digital replacement for post-dated cheques. It allows you to initiate a payment today while setting a specific future date for the funds to be debited from your account and credited to the recipient.<\/p>\n\n\n\n

Think of it as an “electronic cheque” but with a date that you control. You\u2019re doing away with the paper, physical deposit, and manual clearing process yet keeping the benefits of delayed payment.<\/p>\n\n\n\n

How does it work? It\u2019s relatively straightforward. All you need to do is log in to your bank’s platform; EDP is offered by seven participating banks in Singapore (Citibank Singapore, DBS, HSBC, Maybank, OCBC, Standard Chartered, and UOB), both for individuals and businesses.<\/p>\n\n\n\n

You then need to create an EDP instruction by entering the payee’s account details, payment amount, and the settlement date (which can be days or weeks in the future). The bank will then hold this instruction but payment doesn’t go through until the settlement date.<\/p>\n\n\n\n

On the specified date, the bank processes the payment and notifies both parties. It\u2019s an efficient way of replicating the way a post-dated cheque works except that it’s digital, traceable, and eliminates the risk of lost or damaged cheques.<\/p>\n\n\n\n

What Is EDP+?<\/strong><\/h3>\n\n\n\n

Alright, so now that we know what EDP is, what exactly is EDP+? It\u2019s an enhanced version of EDP and basically designed for transactions that require additional verification or security. Think especially high-value payments.<\/p>\n\n\n\n

EDP+ will have additional security and verification features, including two-factor authorisation or dual signatory approvals (for corporate accounts), enhanced payment tracking, and the ability to attach payment references or contractual documentation digitally.<\/p>\n\n\n\n

This makes EDP+ particularly useful for property developers, law firms, and larger corporates where payment security and audit trails are critical from both a regulatory and compliance perspective.<\/p>\n\n\n\n

What Are The Benefits Of Switching To EDP And EDP+?<\/strong><\/h3>\n\n\n\n

For those used to cheques, the transition may feel like a hassle at first. But the benefits of going electronic are clear.<\/p>\n\n\n\n

There\u2019ll be faster processing after settlement date as with cheques, even after the date arrives, the payee still has to deposit it and wait for clearing. EDP and EDP+ will make that negligible as it settles directly into the account on the agreed date.<\/p>\n\n\n\n

Furthermore, there\u2019s also reduced operational risk with no risk of losing a physical cheque, forgetting to deposit it, or dealing with illegible handwriting (which has been known to cause a lot of issues).<\/p>\n\n\n\n

Then there\u2019s the cost aspect. As all businesses will appreciate but particularly banks, it\u2019s lower cost to pay digitally with cheque clearing fees being phased out alongside cheques. Finally, with better tracking and a more environmentally-friendly approach (no wasting paper), there\u2019s not much to dislike about the EDP and EDP+ system.<\/p>\n\n\n\n

How EDP & EDP+ Affects Corporates And Individuals<\/strong><\/h3>\n\n\n\n

Overall, EDP and EDP+ will help businesses, individuals and banks become more efficient when making payments. <\/p>\n\n\n\n

It\u2019s important to remember that from the end of 2025, banks will no longer issue physical cheque books to corporates. From the end of 2026, banks will no longer process physical cheques from corporates. For a period, individuals will still be able to issue and use cheques \u2013 but this too will be eliminated in due time. In the meantime, corporate will be able to receive retail cheques issued by individuals.<\/p>\n\n\n\n

That means corporates that rely on post-dated cheques today, and haven’t already switched to an alternative, could find themselves scrambling to make payments on time. For payments in USD though, USD cheques remain available for both corporates and individuals. Similarly, cashier\u2019s orders for corporate and individuals will remain available.<\/p>\n\n\n\n

The new system will offer a clear replacement for the delayed-payment function that cheques have long provided, without the inefficiencies of paper processing as well as with added security features with EDP+.<\/p>\n\n\n\n

Like most changes in the financial world, there will be an adjustment period but once the switch has been made we may end up wondering why we stuck with paper cheques for all this time.<\/p>\n","protected":false},"excerpt":{"rendered":"Banks will stop issuing corporate cheque books from 31 December 2025.\n","protected":false},"author":1,"featured_media":13817,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[92],"tags":[1815,1816,1821,2360,1820,668],"yoast_head":"\nReplacing Physical Cheques: Complete Guide To Electronic Deferred Payments (EDP & EDP+) | DollarsAndSense Business<\/title>\n<meta name=\"description\" content=\"From 31 Dec 2025, banks will stop issuing corporate cheque books. 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