Cheque changes to affect smaller firms

Date: 27th November 2009

The future of cheques is the subject of renewed speculation, with reports suggesting that the payment method could be phased out by 2018.

A meeting of the Payments Council is scheduled for December 16th - during which a vote on the payment changes could be held.

The move could have a marked effect on smaller businesses which still accept cheques from clients.

However, the payment method, which has been around in the UK since the 18th century, has been declining in popularity.

Cheque usage declined by around four per cent last year - and many retailers have already stopped accepting them.

The Payments Council has also previously voted to phase out the cheque guarantee card system by 2011.

However, the Cheque and Credit Clearing Company (C&CCC) has just launched a new two-minute online information film, which explains various aspects of cheque use to customers.

Angela Thomas, C&CCC's managing director, said: "Despite the fact that around half of us in the UK continue to receive cheques, our research shows that not many of us are actually aware what happens to a cheque when it is paid into an account.

Posted by Emma Clarke