guarantee

Customer Cheques not Guaranteed from June, warns FSB

Small firms that accept cheque payments will have no protection if cheques bounce after the guarantee scheme is scrapped in June, the Federation of Small Businesses (FSB) has warned. Currently, the cheque guarantee card scheme (PDF) means that up to £250 is guaranteed to be paid by the bank if the cheque bounces. On 30 June 2011 the guarantee scheme will be scrapped, although cheques are not due to be phased out until 2018. The FSB’s warning comes after a survey from retail payments firm WorldPay found that more than three-quarters of small firms are unaware that the guarantee scheme is being scrapped, and three out of five have made no alternative payment plans. FSB spokeswoman, Sara Lee, said that the change would deter a lot of firms from accepting cheques. “Many service fir... »