Cheques Are On The Way Out
While a recent report highlighted the demise of the traditional cheque as a payment method, the value of cheques written was still well in excess of the value of credit card use. It may then come as a surprise to know that the London Underground have recently announced plans to stop accepting cheque payments from the 15 July. They now join a band of retailers who no longer take cheques which includes ASDA, Morrisons, Boots, WH Smith and Shell to name but a few.
There is speculation that the “real†reason why cheques are being frozen out is the amount of time which a transaction takes to clear, and the funds to be transferred. There is also the potential for fraudulent activity, and the well know “bouncing†of cheques. As a cheque physically needs to be taken to a bank to cash it, there is also an added cost in labour time.
It is very difficult to actually pinpoint the time when cheques began to be banned by retailers, although perhaps the first main store to do this was ASDA. Once one of the “majors†has broken ranks it is very easy for the rest to follow, with ASDA taking much of the initial criticism. So it appears that we may very shortly be seeing the total demise of the humble cheque, but do you feel safer paying by card?
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