Cheques Could Disappear Within a Decade
According to the United Kingdom?s Payment council, the concept of using cheques could be made completely obsolete by 2018, noting that the use of cheques was in ?long-term, terminal decline?
Cheques have been used as a form of payment for over 3 centuries, but these days many people feel that there are more efficient ways of paying for goods.? The council said it would promote different methods of payment so that the eventual withdrawal of cheques won?t leave customers without the knowledge of make different types of payments.
The body admitted that there were still plenty of situations where cheques were used, but also stated their goal of removing the need for consumers and businesses to rely on the cheque system in the future. They stated that there will be a financial review several years before the 2018 date to see if enough progress had been made to justify getting rid of the system.
Payments Council CEO Paul Smee said: “There are many more efficient ways of making payments than by paper in the 21st century, and the time is ripe for the economy as a whole to reap the benefits of its replacement.”
The cheque has been in decline since 1990 after bank transfers and debit cards become the preferred and far quicker method of paying for goods. When internet shopping and banking exploded in the late nineties and early parts of the 21st century, the cheque suffered an even bigger hit as most people demanded fast delivery and efficient service.
Currently there are no major retail stores that accept cheques as the payment, nor do many petrol stations ? it costs a business around a pound to process a cheque so many have just given up with the system, and we doubt its lost them much business. However, pensioners and small businesses still use cheques on a regular basis.
The Federation of small businesses has spoken out against the move, with a spokesman saying:
“This will cause concerns for both a number of small businesses who do not have electronic payment systems and their customers. It is not for the council to do the bidding of the banks, which have been against keeping the cheque because of the cost incurred.”
Liberal Democrat MP Mark Hunter has also started a motion to save the cheque, which currently has over 100 signatures: ?As well as causing unnecessary disruption for many businesses, bankers would be dealing a huge blow to hundreds of thousands of people, many of them elderly, who rely on cheques for payment?
What do you think? Should Cheques be scrapped now we have much more efficient ways to pay, or should we keep them going instead of forcing the elderly to use another system?