ANOTHER "BANKS BASH BUSINESS" TALE
THE SAGA OF THE CANCELLED CHEQUE
You may recall that the Banking community have decided to stop processing cheques in 2018. This will disadvantage smaller businesses and less commercially aware customers disproportionately, so "little" businesses and OAPs, beware.
Actually, the banks could not wait, so while the clock ticks on cheques becoming obsolete, they have made them less useful: the Payments Council have decided to close the UK domestic Cheque Guarantee Scheme from 30th June this year. From then, there is no way you can be satisfied that a cheque will not be returned unpaid.
The stated reason is because cheque volumes are falling – well, they will now! Good news for debit cards and paypal, etc, not so good for those without access to a computer (which may include you at an auction, for example?). You can still write and receive cheques, but while this will work for established credit customers, it will not enable you to take a cheque from someone you do not know.
During stressed commercial times (read recessions) asking customers to pay is bad enough, asking them to pay in some different way is worse. The Banking community likes debit (and credit) cards and this should ensure that everybody has at least one, since establishments that take cheques will now be progressively less willing to do so. Cheque volumes will continue to fall, vindicating the decision to phase them out!
A more industry-friendly explanation is to be found at www.paymentscouncil.org.uk, but I thought you should know that your bank is working in their best interests, and do not think you can pay at the door with a cheque card next time ...
