UK Payments Council Board Says Good Bye to Cheques

The UK Payments Council Board has targeted the 31st October 2018 as the date to close central cheque clearing. According to the council, cheque use is in long-term, terminal decline. Cheque use has been in decline since 1990, and has fallen by 40% over the last five years.

The Payments Council was faced with the choice of either managing the decline to ensure that personal and business cheque users have alternatives easily available to them; or to stand back and let the decline take its course. It has decided that its active involvement can help prevent confusion and deliver cheque alternatives that are acceptable to cheque users. The Payments Council wants to ensure that consumers and businesses are not left high and dry when the closure of the clearing occurs.

Over the next nine years the Payments Council plans to promote and explain alternatives. Alternatives include payments between individuals, and payments to sole traders, small businesses, clubs, charities and schools. The goal is to ensure that by 2018 there is no scenario where customers, individuals or businesses, still need to use a cheque.

The decision was made after 18 months of extensive research to understand where and when customers still use cheques, and where alternatives need to be developed. The payments council will take the lead on providing solutions which suit all customers currently using cheques/