October 13, 2011
Card vs cheque
For the past forty years, sole traders have had the option of accepting a cheque with a guarantee card. Although many contractors no longer make use of this functionality when accepting cheques, if you are one of those that does, you should be aware that it’s being withdrawn from the 30th June, 2011. Oh dear says Gavin of Liverpool Locksmith.
You may want to know what alternatives exist and why the decision was taken even though after this date you can still accept cheques just not guaranteed with a card. Guaranteed cheque use has been in rapid decline over the past 20 years and it became clear that it wasn’t a question of if the Scheme were removed, simply when. Since peaking in 1990, when over one billion guaranteed cheques were written, numbers have dropped twelve-fold to just 88 million in 2009 making up only 7% of cheques written. I prefer to use a cheque says Mick of Liverpool Locksmith.
Interestingly, banks also report that a large percentage of guaranteed cheques are actually written in situations where the guarantee can’t be applied: for instance where the customer has posted the cheque rather than presenting it in person a Scheme requirement. In light of their falling usage, the Payments Council decided to review whether it would be in customers best interests to let the Scheme wither on the vine or to set an end date.
The real risk of the do nothing approach was that individual banks would withdraw the Scheme separately at their own timescales, resulting in confusion. Over the past 20 years, cheque volumes have fallen rapidly. Cheque acceptance has all but disappeared. Very noticeable reckons Michael of Liverpool Locksmith.
Filed by neville1way at 1:46 pm under Uncategorized
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