It has been announced that the Treasury Select Committee is to reopen its inquiry on the future of cheques, in light of the continuing public concern about moves to phase out the method of payment by 2018.
The news comes at a critical time, as the removal of the guarantee element of the cheque is due in two months’ time. The decision has been warmly applauded by the NFU.
A significant proportion of our members are concerned about the withdrawal of the cheque and alternatives have not yet become part of many farm businesses.
The setup and transaction costs for small businesses to implement ‘chip and pin’ often make it a very expensive option. Furthermore, several brands rely on internet connectivity which is still an issue in many rural areas.
The then-Treasury Committee launched an inquiry in February 2010 on the future of cheques and took evidence from a range of organisations, including the UK Payments Council.
The council also took the decision in September 2009 that the cheque guarantee card scheme would close on 30th June 2011. It will no longer be possible to guarantee a cheque under the scheme after this date.
In order to provide the committee with suitable evidence, the NFU is urging members to complete this year’s banking survey which has been specifically designed to include a payment method section.
- Christina Clubb - 06/05/2011
Please keep cheques - I use them all the time for work and personal use.
- p. constantinou - 06/05/2011
I use checques all the time. I do not like internet banking - too many security alarms.
- Jon Wes - 05/05/2011
The cheque is far too useful to too many people and businesses to lose. Somethings should be left alone - the cheque is one of them. Online banking is not to be trusted.