Cheque card move 'had small effect'

Getting rid of the cheque guarantee card has had little effect on the way business is conducted in the UK and will therefore not be reintroduced, according to the company which oversees payments.

The card was abolished in June because few people are said to still use it.

The Payments Council, which represents the biggest banks, had also planned to get rid of cheques altogether, but backtracked.

It has been urged by some to bring back the guarantee card but said research shows that cheques continue to be used in much the same way as they were before the card was done away with.

The council said it will make efforts to tell older people, who tend to use a chequebook more than other age groups, that cheques are here to stay. It added that it will advertise more the 'chip and signature' system.

The council also said it will look into introducing second cards on current accounts, which will allow 'delegated payments'.

Michelle Mitchell, Charity Director of Age UK said:

'It's striking that The Payments Council has  found that more than half the  businesses surveyed which still use cheques do not accept credit or debit cards. This, surely, sends an important signal to the banks that plastic cards are not a one size fits all solution. Clearly, there is still a vital need for cheques  which are relied upon by many small businesses and older people as a safe and easily accessible way of paying.'

Copyright Press Association 2011