Tesco Latest To Announce Withdrawal Of Cheques

by Stewart Douglas

Story link: Tesco Latest To Announce Withdrawal Of Cheques

The UK’s largest retailer Tesco has today announced that it will no longer be prepared to accept cheques as payment for its goods, in a bid to streamline the retail process and bring about improved security throughout its retail operation, following similar moves by a significant number of retail groups over the last few months.

Cheques will be withdrawn from use at the supermarket as of the end of February, and will be rolled out nationally as of that date to ensure that no cheque transactions will be posted throughout the organisation.  For customers, the move is being billed as having an advantageous impact on efficiency and service, promising shorter queues and more streamlined service.

Amongst other notable retailers to withdraw the cheque from service was Marks and Spencer, and it is thought that at present cheque transactions account for just 1 in 25 of all purchases made throughout the retail sector, suggesting that it is becoming somewhat obsolete in light of the changing personal finance marketplace.

“Phasing out the use of cheques in stores will result in quicker service and improved security for our customers. We recognise that some people - especially the elderly - might be worried by this change, and this is why we have given customers plenty of notice,” said a Tesco spokesperson today, commenting on the move.

Cheques as a means of payment have become increasingly less popular throughout markets over the last decade, dropping by some 80% in total usage from 1997.  As a result of the decisions to cut back on accepting cheques at retail outlets, it looks set to decline even further to the point of obsolescence, especially with the introduction of more widespread, accessible technologies.

Along with Tesco and Marks & Spencers, most other supermarkets and major retailers have adopted a similar stance to cheques, which look likely to continue to be gradually withdrawn over the course of this year.