Do you pay the milkman by cheque? Slip a surprise cheque in a Christmas card to a grandson or granddaughter? Or maybe you simply don’t trust direct debits when dealing with gas and electricity companies?
In the future you’ll have no choice but to pay electronically, by plastic, or go online if, as expected, Britain’s banks vote tomorrow to phase out the 300-year-old tradition of payment by cheque.
Cheques cost up to £1 each to process – and the number written has been falling steadily.
As recently as 2002 a typical consumer in Britain was writing 31 cheques a year, but the number fell to 14 by 2008. Big stores such as Marks & Spencer have already stopped taking cheques, and the Payments Council, which sets strategy for UK payments in Britain, says they are now used for fewer than one in 25 purchases.
Scandinavian countries and Ireland have already voted to phase out cheques, and a board meeting of the Payments Council tomorrow afternoon expected to set an ‘end date’ of 2018 for cheque clearing in the UK.
It wants consumers to switch to cheaper and faster electronic payment processing and says it will use the eight-year transitional period to ensure alternative arrangements are put in place.
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I guess that “the cheque is in the mail” excuse is gone now.
mid island mike
I wonder how much longer before this hits us? Not that I use cheques anymore…
Reminds me of the story of 2 hunters, one polish and one czech, who were set upon by a male and a female grizzly. Both hunters were killed and the bears were later tracked down and killed by wildlife officers. Upon examination it was discovered that the czech was in the male.
mid island mike
Should be a good opportunity for some bank to continue to offer cheques. As a self employed businesman, I write alot of cheques to suppliers.
A bookkeeper I know says that a lot of small businesses pay as many of their bills as possible using a rewards credit card and rack up the airmiles or other rewards quite quickly.
mid island mike
I remarked some time ago about some of our banks offering “free chequing accounts” to attract new customers. One of those “offers” that mean bugger all.
I had to write a cheque a few months ago and it took me a while to find the cheque book.
A great many Americans write cheques for practically everything from McDonald’s to Target to gas for their cars. This will be a life style adjustment.
I haven’t used cheques in years because I could never keep the book balanced. It wasn’t me — it was “them other guys” who filed the cheque away and took it to the bank sometimes two months after the fact.
I gave up.
I use cash or once in awhile a credit card if I’m stuck.
It’s simpler and I don’t get into trouble.