'Cheque users must be taught alternative payment methods when cheques are phased out'
People who use cheques must be taught how to use alternative payment methods - which could include debit and credit cards - if cheques are phased out, it has been suggested.
'Cheque users must be taught alternative payment methods when cheques are phased out'”
Tim Pie, spokesperson for HSBC, said the use of cheques is in terminal decline.
He predicted that some time in the future it will become too expensive for the industry to maintain the cheque system.
Once that happens, banks or the industry will stop issuing cheques.
Mr Pie also commented fewer retailers accept guaranteed cheques, preferring to use other payment methods, which could include debit and credit card payments.
His comments follow the release of statistics by the UK Payments Association, showing that the total values of cheques fell by 20.9 per cent in the second quarter of 2009, in comparison to the same quarter the previous year.
The statistics also showed spending on credit cards was in negative growth, the first time in two years that credit card spending has fallen to this level.
"We used to always pay by cheque, you'd give your plumber a cheque as he was leaving," Mr Pie noted.
"Tradespeople are increasingly using their online accounts to receive payments, and also to make them themselves. That is increasing and as a result fewer cheques are being used."
Written by Charlotte Stevens ©
