Originally Posted by ALAU:
Of course most landlord would love a standing instruction, hassle free, you are right. I would too. But I did not list it in my previous list of suggestions to lower rate precisely because of this - a lot of banks charge a fee for cross-bank transfers, so the tenant may not like it.
It is not a matter of setting up a standing instruction - the instruction could be for a transfer between 2 accounts in the same bank (usually free), or it could be cross banks, or even overseas.
The charge occurs when you have a cross-bank transaction, even if local. This is called CHATS, or RTGS. Banks actually have a COST to use this system, although admittedly it is not large since they do it in bulk (I don't know exactly but I think it is something like a dollar or less).
So, they charge you for it - take the cost they pay, plus whatever manpower cost allocation they have, plus a profit. It makes sense, sort of like at a restaurant, a fish may cost HKD30 from the market, but you add the delivery, the ingredients, overheads, staff costs, rental, laundry, etc., and you add a profit, and bingo, you have to pay HKD250 for the Grilled Dover Sole. Same thing with banks.
But as to what banks charge for the transfer, it differs. You can eat a fish at a local Cha Charn Teng, or you eat a fish at a gourmet French restaurant, same thing, but as the consumer you can get to pick a bank. Some banks simply waive the charge, and take profit via other charges, maybe an account fee, who knows.
HSBC is known to be expensive I know. SCB? Well let's just say that I have had interesting experiences with them (hidden costs whilst others are waived). Try one of the other smaller banks. Not as convenient, not so good internet banking maybe, but usually cheaper.
However it is indeed strange not to charge for cheques - they don't charge for cheques in the UK either you know? But they do charge for local transfers too. But I read a couple of months ago that the UK plans to phase out cheques within 10 years.
As for HK, it would take time. At least they now have electronic cheque clearing (in the past banks have to physically exchange the cheques at the end of each day), so it is one step. Cheques are popular as Loz said, people like something tangible in their hand rather than the promise that the money will be coming on a particular day. Also, writing a cheque which bounces is actually against the law, did you know that? But stopping a Standing Instruction isn't. So people feel better receiving a cheque.
Also some landlords might not be comfortable letting the tenant know of their account details.