Banks to scrap cheques?
The banks will be voting on 16 Dec about scrapping cheque system by 2018 (see Times article here) - an announcement about it is expected in January. At the moment about 1 payment in 25 is still made by cheque in the UK.
Cheques are inconvenient for banks because they cost more to process than electronic transactions. But how else will one individual be able to send payments to another safely? And do you want to be forced into setting up yet more direct debits?
Small companies are also against stopping the cheque system because of the extra costs they would incur. Apparently the banks have already decided to scrap payment guarantee cards from 2011 - anyone remember them telling us about that decision? Surely that will increase the risks for small tradesmen accepting payments from customers.
The postal order system is also likely to be affected because the secure version - the crossed postal order - can only be paid into a bank account or a PO savings account, unless it's used to pay a bill at a post office. So effectively it's a cheque. Unless of course the Post Office decides to scrap postal orders at the same time?
If you think cheques should stay, please sign the 10 Downing Street petition here.
I realise that there are varying levels of electronic/IT literacy in society, but once grasped, it is very straight forward to make electronic payments instead of using cheques. Also think about how expensive cash is to produce, could it be that in our life times we no longer reach for the coins in our pockets - no cash? The only time I really need cash now is on a night out, at all other times I use debit/credit cards. For me it's generally faster than waiting for the cashier to count and give me the change! And whenever I need to make a bill payment / transfer to businesses, families and friends I go online and pay. So simple I'd recommend it! Goodbye the cheque, it's been nice knowing you...
ReplyDeleteAs was mentioned in PM's questions, Lib Dem Roger Williams said plans to phase out cheques after 350 years will disadvantage the elderly. Harriet Harman said: "We need to look to the future without discriminating older people". I agree, but it'll be interesting to see how they phase out the cheque without discriminating against older people.
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