The final part of three mini reports into farm business banking focusing on payment systems has been released today. The main features covered are cheques and card payment facilities.
The first and second parts can be found here:
http://www.nfuonline.com/our-work/economics/farm-economy/
Why are payments important?
The average farmer makes 350 and takes 240 payments a year. Each payment incurs a cost which may include traveling to a branch, cash machine withdrawal fees, and rental costs for card terminals or direct charges by your bank or building society. Having alternative payment methods enable farmers to minimise their costs and help their customers.
Managing the UK’s payment industry is the UK Payment Council. Setup in 2007, the biggest decision they have made is to outline a timetable for abolishing the cheque. The NFU provided a detailed submission to the committee and as a result the NFU have been invited to sit on a panel of experts to influence Payment Council activities.
What is the NFU doing?
The NFU submitted comprehensive evidence to the Treasury Select Committee in May 2011. The evidence can be found here:
http://www.publications.parliament.uk/pa/cm201012/cmselect/cmtreasy/writev/cheques/m75.htm
The NFU met with the Payment Council in June to discuss our submission on cheques to the Treasury Select Committee.
During the meeting the NFU explained why there is a strong feeling in the rural community about this issue and what we need alternatives to do.
In order to ensure your views are heard, the NFU will be attending a quarterly meeting with chaired by one of the Independent Chairman on the Payment Council. During this meeting the NFU will ensure that alternatives to cheques meet farmer’s needs and also pointing attention to other payment systems that are currently overpriced, notably credit card terminals.
The Payments Council have also requested that the NFU help assemble a group of farmers and growers who can test alternatives to the cheque as and when they are developed.
Looking towards the 2016 decision on the future of the cheque, the NFU will continue to run the annual banking survey to prove that farmers still rely on the cheque unless the use of alternatives accelerates.
We will also be producing guidance on payment systems for members by the end of the year.
To view the full report click on the attachment to the right
- M A Smith - 30/06/2011
We run a B & B business letting out 2 rooms. We are constantly being asked to receive deposits and payments by Debit And Credit cards.The % costs that the banks require are prohibitive to operate a card machine, we can only accept cheques and cash.If cheques disappear the banks need to come up with a better system. Perhaps free!!