Cheque payments winding down

The Payments Council have set 31st October 2018 as the target date for closure of the UK Cheque Clearing - the use of cheques will stop from this date. The final decision on a closure date will be taken by the Payments Council in 2016 and will be dependent on there being a clear consensus across all interested parties.

This decision was taken against a backdrop of falling cheque volumes and after detailed consultation across the UK among cheque users. However, cheques remain a key means of payment, so the withdrawal of cheques will be a significant change for many businesses and individuals.

The use of guaranteed cheques has seen a particularly sharp decline in recent years and the guarantee service will cease from 30th June 2011.

While businesses will still be able to accept cheques after this date, they will not be supported by the scheme. Any cheques written up to 30 June 2011 will continue to be guaranteed as normal.

Although businesses can still continue to write cheques as normal, they should start to consider what the implications of their withdrawal means for their organisation. Some questions to ask yourself ...

• Do you currently receive cheques as payment? If so, how do you want to be paid in future?

• Will you still accept cheques once they are no longer guaranteed?

• Do you currently pay by cheque? If so, how will you pay in future? Remember, June 30th 2011 is already less than a year away!