Payments Council in cheques u-turn

Date: 18th July 2011

Small businesses around the UK will be able to continue using cheques to make and receive payments after a u-turn on proposals to axe the paper-based method.

It had been planned that cheques would be phased out by 2018 but, after a number of small business groups voiced their concerns, the Payments Council decided to shelve the proposals.

Richard North, the chairman of the Payments Council, explained: "[After] listening to over 600 stakeholder groups … we have concluded we should reassure customers that the cheque is staying.

"Over the last two years we have learnt a great deal about what is important to our many stakeholders and we are really grateful to all of those groups and individuals who took the time to talk to us and help us reach this decision."

After small business groups and other lobbyists made clear their desire to retain paper payment as an option, the organisation said it would use this information to improve the current system.

Posted by Thomas Fletcher