The Future of Cheques

Consumers and businesses are using fewer cheques.  The number of cheques is falling at 12% per annum and most major retailers and other merchants no longer accept them.  Alongside growth in existing electronic payment methods, there is continuing innovation in new alternatives to cheques.

Given the steady fall in cheque use, the choice is between managing the decline and leaving developments to market forces.  The Payments Council believes that a managed decline is in users’ best interests as it offers a clear plan for bringing alternatives on stream and provides clarity and certainty to those organisations that process large volumes of cheques.  The alternative of leaving it to market forces risks increasing confusion amongst users, and increasing disadvantage for those who remain dependent upon cheques and are least equipped to change. 

The Payments Council Board has agreed to set a target date of 31st October 2018 to close the central cheque clearing.  Over the next nine years the Payments Council will work to ensure that where alternatives already exist they are promoted and explained; and where innovation and new options are required, they are put in place.

This decision was taken on 16 December 2009 following extensive research and consultation.

A report explaining why this decision has been taken and how we plan to carry out our work can be found here

Independent market research exploring the reasons why consumers and small businesses continue to use cheques was used to inform our work. The research report, written by Andrew Irving Associates is available for download here.

The Payments Council’s decision to set a target end date for cheques is the start of a major programme of work that will include consultation with a wide range of bodies and individuals that have real interest in ensuring we address the issues which matter to you. 

A copy of the press release issued today can be found here.

If you wish to tell us your views on the managed decline of cheques, please email us at cheques@paymentscouncil.org.uk or complete one of the following forms and post it to us at Payments Council, C/O PR Assistant, 2 Thomas More Square, London, E1W 1YN:

• If you are a business, organisation, charity or club, please use this form to tell us your views
• If you are a member of the public, please use this form to tell us your views

 

The Payments Council are currently running a series of workshops around the UK with third sector organisations. More information about these workshops can be found here.