Recently announced by the Payments Council, the humble cheque will not be phased out by 2018 as planned. The council stated that cheques will continue as long as consumers still need them.

This is a welcome decision for many and comes after much lobbying from other interested organisations. The main issue is that no real alternatives have been put in place even though the timescale for abolition had been announced. Those cited as being the most likely to struggle if cheques were abolished are the elderly, people receiving benefits and charities.

Results from various surveys also concluded that cheques are still very much in use. A which survey in January found that 92% wanted to keep cheques. Other surveys found that 50% had written a cheque in the last month, 65% of businesses had written a cheque in the last month and 76% of businesses had received a cheque in the last month.

So cheques look likely to remain in use for the foreseable future.

What about the cheque guarantee card?

Unfortunately the cheque card guarantee system ended on 30th June 2011 and many retailers stopped accepting cheques some time ago. Now that there is no guarantee system in place that a cheque will be paid, many more retailers may well stop accepting them. The main reason cheques have fallen out of favour for retailers is the cost of processing them; a charge made by their banks. However, clearly consumers still see the cheque as an important method of payment and retailers may well have to change their stance and start accepting cheques again if they wish to keep their customers.

Please comment below to add your views.

Angie Newnham
Article by Angie Newnham
Having worked for various law firms in the Bournemouth and Poole area Angie Newnham decided to set up her own business in 2010. Angie’s experience covers a range of legal disciplines including Property Law and Conveyancing, which includes both residential, commercial and agricultural work, Social Housing, Landlord & Tenant issues, Wills, Lasting Power of Attorney and a niche interest in equine law and equestrian agreements.

One comment

Geraldine Gilbert
08/11/2011 at 12:20

I have just been reading that the cheque will remain in operation for the foreseeable future. This has taken a great weight off my mind. During the course of a year I support a lot of animal charities by sending them a small cheque when they are making appeals, totalling throughout the year approximately £400 – £500. If the cheques were to disappear then so would the payments I make, as I definitely would not gi ve my card details over the phone to the various charities, which would be a great shame. LONG LIVE THE CHEQUE111111

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