# Charities encouraged to plan for the end of the cheque

- Link: https://fundraising.co.uk/2009/12/17/charities-encouraged-plan-end-cheque/
- Published: 2009-12-17T00:36:07+00:00
- Author: Howard Lake

[⌊Save Our Cheques campaign⌉⌊Save Our Cheques campaign⌉[

 

Charities need to start preparing now for the withdrawal of cheques as a method 
of payment in just over eight years, according to payments processor Rapidata Services
Plc.

 

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The [Payments Council announced yesterday that cheques will be withdrawn as a payment method](http://www.paymentscouncil.org.uk/media_centre/press_releases_new/-/page/855)
by 2018.

 

Currently, alternative payment options include:

 

• Credit card / debit card

 

• Direct Debit (for regular or one-off payments)

 

• Internet payment / bank transfer

 

• Smartcard (similar to Oyster card) swipe technology.

 

Scott Gray, Rapidata’s Managing Director, said: “Cheques have been around for 350
years, but their use has been in decline for many years now and it is no surprise
that they will be gone in little over eight years.

 

“While this may seem alarming to many charities who currently receive a significant
number of cheque donations, a lot can happen in eight years and the Payments Council
has committed to review the decision in 2016, ensuring that suitable payment alternatives
are available.”

 

He pointed out that eight years ago, the public weren’t used to using smartcards
and payment by mobile phone, so systems and the public’s acceptance do change.

 

According to the Cheque & Credit Clearing Company, in 2008 cheques were used to 
pay £1.4 billion compared to £8.32 billion by debit card and £2.05 billion by credit
card. Automated payments accounted for £6.01 billion too.

 

Gray argued that “this move is a positive opportunity to engage with supporters 
and convert them to more cost-effective means such as Direct Debit or Credit Card”.

 

Rapidata is informing all its clients about the change, advising them to get ready
for the changeover from cheques to alternative payment mechanisms. The Payments 
Council has outlined within its report the importance of supporting third sector
groups, amongst other key stakeholders in preparing for this change.

 

www.rapidataservices.com

 

_Photo: The Daily Mail objects to the end of cheques (front page on 17 December 
2009). Howard Lake on Flickr.com._

 

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