Cheque guarantee scheme to end in 2011

by Gill Montia

Story link: Cheque guarantee scheme to end in 2011

Payments services association, APACS, has announced that the UK’s cheque guarantee scheme will end on 30th June 2011.

Agreement has been reached between the 24 banks and building societies that subscribe to the scheme, introduced in the 1960s, meaning that it will no longer be possible to guarantee a cheque using a plastic card after this date.

APACS says that of the 1.4 billion cheques written last year only 7% were guaranteed, representing an annual drop of a third and a fall of 70% over the past five years.

According to the body, the decline has been driven by retailers opting to refuse cheques, to the point where no major UK-wide supermarket chain now accepts payment by cheque.

Jacqui Tribe, manager of the UK Domestic Cheque Guarantee Card Scheme says: “Now an industry-wide date has been set we can look to support customers through the change by providing information on what this will mean.”

She adds: “The alternative was to let the scheme wither on the vine.”

While the use of cheques does appears to be in terminal decline, businesses and individuals will be able to continue to write and accept them once the deadline has passed.