UK Payments Council

Scrapping Cheques will be Expensive, Warn Business Groups

Plans to scrap cheque payments could be expensive for small firms, business groups have warned, as business owners will be forced to buy chip and pin card machines as replacements. Last year, the UK Payments Council announced plans to abolish cheque guarantee cards by June 2011, and cheques are due to be completely phased out by October 2018. The changes mean businesses will be forced to consider alternative payment systems such as chip and pin. The Federation of Small Businesses (FSB) has warned that costs of such systems could be high. On average, chip and pin card readers cost around £30 a month to rent from banks, with additional charges per transaction. This means businesses could incur additional overheads of hundreds of pounds a year. “Getting rid of cheques and cheque g... »