What is a primary challenge with international cheque clearing?

A primary challenge with international cheque clearing is that a global cheque clearing system does not exist. This lack of a universal system means that cheques that are drawn in one country may face significant delays, complications, and additional costs when being processed in another country. Each nation typically has its own clearing processes, regulations, and timeframe, which complicates the timely and efficient transfer of funds across borders.

In the absence of a standardized system, international transactions involving cheques can be cumbersome, leading to issues such as differing acceptance policies and variances in clearing times, all of which can impact the overall reliability of using cheques in international trade. This challenge underscores the importance of having robust payment systems in place for facilitating cross-border transactions.