1 July 2011

Advice on Phasing Out of Cheques Released

The UK payment industry is phasing out the cheque card guarantee scheme from 30 June. The Cheque and Credit Clearing Company (C&CCC), backed by the UK Payments Council has issued some advice to businesses about alternatives to accepting guaranteed cheques. As June 30 approaches, the major banks will be communicating with customers who write or accept guaranteed cheques to ensure that they know that they can continue to use cheques and to outline the alternative options. The UK Payments Council will also be working to reassure customers that the closure of the Scheme does not mean that cheques are disappearing on this date totally.

The use of guaranteed cheques has fallen dramatically over the past 20 years, and following extensive consultation with businesses and customers the UK Payments Council decided that the scheme would be better terminated by setting a co-ordinated closure date. In the run up to the closure date, banks have ceased to issue new cards with the hologram, and over a quarter of all debit cards in existence no longer have cheque guarantee functionality.

Further information can be found here.