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Cheque payments to disappear by 2018
The board of the UK Payments Council, which oversees payments strategy, is due to meet for a discussion on whether or not the cheque clearing system could end by 2018.
The goal is to gradually eliminate cheques as a payment system over the next eight years. This should give small businesses the opportunity to seek efficient alternatives as payment technology improves to accommodate for the elimination of the cheque.
Due to the increasing reliance on digital payment systems, such as credit and debit cards, cheques are believed by many specialists in the field to be in terminal decline. Despite this the lack of a suitable substitute has meant that no date has yet been set for this system of payment to stop.
The Payments Council have announced that cheques will not be phased out until a more accessible, acceptable system has been sought out and implemented.
This will be welcome news to many small businesses such as builders, plumbers and other tradesmen who still rely on the cheque payment system as it involves no technical equipment to take payment.
However, Matthew Goodman, from the Forum of Private Business, stated:
“We should not let sentimentality dominate the debate. Cheques are generally the most expensive payment method for businesses to process.”
He went on to say that the expense related to processing cheques is expected to go up as increasingly less people use them.
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