Cheque guarantee cards could return, says Payments Council
Howard Lake | 16 November 2011 | News
After the Commons Treasury Committee report in August said there was a case for bringing back a form of cheque guarantee card, the Payments Council has said it is neither ruling the scheme in or out. It is, however, looking at whether shops and others were less likely to accept cheques since the abolition of the cheque guarantee card earlier this year.
The Institute of Fundraising maintains there is a need to continue to protect the cheque as a method of payment. Time and money need to be invested to research new alternatives, to stop cheques ‘withering on the vine’ as a payment form, the Institute said in a response to coincide with the Treasury Committee published report.
The Institute agrees with the report’s findings that the reintroduction of the cheque guarantee card should be considered, or else an alternative mechanism ought to be found to ensure cheques can still be accepted as a payment form.
Director of policy and campaigns at the IoF Louise Richards commented: “It was never right for the planned phasing out of the cheque to be allowed to progress so far without taking into account the legitimate concerns of key stakeholders, such as charities and charity donors. This is an issue with many far-reaching implications which needs careful consideration.”
The Payments Council’s review of the abolition of the scheme will publish its results by the end of the year. However, it said that many retailers had stopped accepting cheques, not because of the end of the guarantee scheme, but because customers no longer used cheque books.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.