Hong Kong's Electronic Checks

An electronic check is a payment method in Hong Kong. This article details the definition, advantages, security measures, issuance methods, deposit methods, and precautions of electronic checks.

Click here to join the discussion group and get the latest information

If you are interested, you can also read Basic Knowledge of Bank Accounts and Cards in Hong Kong, such as the definition of checks, which has been elaborated in detail in this article.

Introduction

An electronic check is the electronic counterpart of a paper check, a fully paperless payment method that completes invoicing and accounting through an online platform.

Electronic checks are presented in PDF file format, containing the same basic information as paper checks and printed with the electronic check logo.
Electronic checks have the same legal status as paper checks.
Electronic checks are non-transferable.
Electronic checks must specify a payee and can only be deposited into that payee’s bank account.
Electronic checks can only be used for payments in Hong Kong dollars, US dollars, and Renminbi.

Advantages

Electronic checks offer the convenience of being issued anytime, anywhere.
Electronic checks do not need to be physically delivered or deposited, providing a more convenient operation method.
Electronic checks use strict security measures to ensure the security of funds.
The electronic checkbook is kept by the paying bank, eliminating the need for a physical checkbook and simplifying the management process.
Electronic checks are more environmentally friendly, reducing paper consumption.

Security Measures

The security measures for electronic checks are as follows:

Payers must go through two-factor authentication (2FA) to issue electronic checks, increasing the security of identity verification.
The paying bank can perform additional verification of the electronic check based on internal check issuance records to ensure the accuracy of the payment.
Electronic checks use digital signatures based on Public Key Infrastructure (PKI) technology, effectively preventing electronic checks from being tampered with.
A central accounting verification mechanism is in place to prevent the payee from depositing the same electronic check multiple times, ensuring the accuracy of fund flows.
Payers can consider pre-encryption before sending electronic checks to further enhance security.

Electronic Check Issuing Banks

As of November 28, 2022, only the following Hong Kong banks support issuing electronic checks.

Bank of China (Hong Kong) Limited
Bank of Communications Co., Ltd.
Bank of Communications (Hong Kong) Limited
Chiyu Banking Corporation Ltd
China Merchants Wing Lung Bank Limited
Fubon Bank (Hong Kong) Limited
Nanyang Commercial Bank, Limited
OCBC Wing Hang Bank Limited
The Bank of East Asia, Limited
The Hongkong and Shanghai Banking Corporation Limited

The Hongkong and Shanghai Banking Corporation stopped electronic check issuing in 2024.

Issuing Electronic Checks

The steps for issuing an electronic check are as follows:

The payer registers for the electronic check service through their online banking account and applies for a digital signature to sign the electronic check. Some paying banks provide a one-stop service to facilitate payers to quickly complete the application, renewal, and storage procedures for digital certificates.
The payer needs to obtain the payee’s consent and latest email address in order to receive the electronic check.

The specific steps for issuing an electronic check are as follows:

Log in to your online banking account.
Select the electronic check issuance service.
Enter the payee’s name, check date, and check amount.
The bank will issue an electronic check with a digital signature according to the payer’s instructions.
Download the electronic check and send it to the payee electronically (e.g., via email). Some paying banks may send a notification to the payer’s registered phone number via SMS after sending the electronic check.

Please note that the specific steps may vary depending on the bank and the electronic check service. It is recommended that you refer to the guidelines and instructions of the bank you are using when using the electronic check service to ensure correct operation.

Depositing Electronic Checks

The methods for depositing electronic checks are as follows:

Deposit electronic checks through online banking:

Step 1: Log in to your online banking account.

Step 2: Select the electronic check deposit service.

Step 3: Select the deposit account and upload the electronic check. Please note that the electronic check deposit service provided by different receiving banks may vary. Some receiving banks may not offer this service.

Deposit electronic checks through the electronic check deposit service:

Step 1: Log in to the electronic check deposit service website Hong Kong Electronic Check Deposit Service or use the mobile application.

Step 2: If you have not registered before, register the bank name and account number for deposit purposes.

Step 3: Upload the electronic check.

Step 4: Select the registered bank and account number for deposit purposes.

Step 5: After confirming the deposit information, click “Next” and then click “Confirm” to complete the deposit process.

Step 6: After the deposit, an email notification will be sent to your registered email address. In addition, you can also check the status of the electronic check through the “Check Deposit Record” function of the electronic check deposit service.

Please note that the specific steps may vary depending on the bank and the electronic check service used. It is recommended that you consult your bank for detailed information.

Precautions

Key points to note when using electronic checks include:

Before using an electronic check, ensure that you obtain the payee’s consent and obtain their latest email address in order to receive the electronic check correctly.
Before sending an electronic check, carefully check the information on the electronic check to ensure it is accurate.
When transmitting electronic checks, use secure electronic channels, and consider encrypting the electronic check when necessary.
Unless there is a need to keep the electronic check as a record, delete the electronic check in the computer and/or smartphone after invoicing and/or accounting.

Things to avoid when using electronic checks include:

When issuing a check, do not enter any personal information other than the payee’s name, such as Hong Kong identity card number and phone number.
Do not scan paper checks and use them as electronic checks.
Do not print electronic checks and use them for accounting purposes.
Avoid depositing the same electronic check multiple times.
Do not use electronic checks submitted by the payee as collateral or for transactions such as lending.

Frequently Asked Questions

After registering for the electronic check service, can I still issue paper checks?

Answer: Yes, as a basic banking service, banks will continue to provide paper check services.

When issuing and depositing electronic checks through online banking, do I need to bear any fees (including the related fees for the digital certificate used to sign electronic checks)?

Answer: Whether or not to charge fees is a commercial decision of individual banks. However, we understand that most banks will provide relevant services to retail banking customers for free.

Is there any charge for using the electronic check deposit service?

Answer: No, this service is completely free.

Can I issue electronic checks payable to the bearer or cash electronic checks?

Answer: No. Electronic checks must specify a payee and be deposited into that payee’s bank account. In addition, electronic checks cannot be exchanged for cash at bank counters.

Can I use electronic checks to pay Hong Kong government bills?

Answer: In the first phase, citizens can use electronic checks to pay general demand notes and tax bills and demand notes issued by the Inland Revenue Department. Bills from other departments will gradually accept electronic check payments.

What if I don’t know how to deposit an electronic check?

Answer: You can find another trusted person (such as a family member) to deposit the electronic check on your behalf through the electronic check deposit service, or refer to the relevant information on the Hong Kong Interbank Clearing Limited website. If necessary, you can also seek help from your bank.

What is the deadline for depositing electronic checks?

Answer: The deadline for the electronic check deposit service is 5:30 pm on each business day. If you use online banking to deposit, please refer to the deadline of individual banks.

Can I refuse to accept electronic checks?

Answer: Yes, if you do not want to accept electronic checks, you can ask the payer to use other payment tools (such as paper checks).

Introduction#

Advantages#

Security Measures#

Electronic Check Issuing Banks#

Issuing Electronic Checks#

Depositing Electronic Checks#

Precautions#

Frequently Asked Questions#

Recommended Reading#