When Cheques Go Out
Already many major stores refuse to take cheques including Tesco, Sainsbury and Marks and Spencer, but sometime soon cheques may be finished altogether. The Payments Council Board has set a target date of October 2018 to end them.
The use of cheques is still seen as quite popular. So what are the reasons to end them?
There are a few reasons, one being that they are seen as old fashioned and its use is gradually reducing. 2002 saw 2.4 billion cheques being written. This was reduced to 1.4 billion in 2008 (Working Lunch). They are therefore foreseen to phase out themselves as time passes.
The main reason, though, is the cost of processing, handling and clearing cheques and also the extended time it takes to clear them, thus making them unwanted by banks.
So what will replace cheques if they go? The way technology is developing and picking up it seems it will be the most likely alternative.
Already the Internet is becoming a popular payment and banking method. By the time cheques end in 2018 new methods are predicted to emerge including mobile phone payments, which are already popular in many countries worldwide.
When Cheques Go Out
The use of cheques is still seen as quite popular. So what are the reasons to end them?
There are a few reasons, one being that they are seen as old fashioned and its use is gradually reducing. 2002 saw 2.4 billion cheques being written. This was reduced to 1.4 billion in 2008 (Working Lunch). They are therefore foreseen to phase out themselves as time passes.
The main reason, though, is the cost of processing, handling and clearing cheques and also the extended time it takes to clear them, thus making them unwanted by banks.
So what will replace cheques if they go? The way technology is developing and picking up it seems it will be the most likely alternative.
Already the Internet is becoming a popular payment and banking method. By the time cheques end in 2018 new methods are predicted to emerge including mobile phone payments, which are already popular in many countries worldwide.
When Cheques Go Out
Labels: cheques, Payments Council
