Checking out...

[Peikko 1,575]

Do you pay the milkman by cheque? Slip a surprise cheque in a Christmas card to a grandson or granddaughter? Or maybe you simply don't trust direct debits when dealing with gas and electricity companies?

In the future you'll have no choice but to pay electronically, by plastic, or go online if, as expected, Britain's banks vote tomorrow to phase out the 300-year-old tradition of payment by cheque.

Cheques cost up to £1 each to process – and the number written has been falling steadily.

As recently as 2002 a typical consumer in Britain was writing 31 cheques a year, but the number fell to 14 by 2008. Big stores such as Marks & Spencer have already stopped taking cheques, and the Payments Council, which sets strategy for UK payments in Britain, says they are now used for fewer than one in 25 purchases.

Scandinavian countries and Ireland have already voted to phase out cheques, and a board meeting of the Payments Council tomorrow afternoon expected to set an 'end date' of 2018 for cheque clearing in the UK.

It wants consumers to switch to cheaper and faster electronic payment processing and says it will use the eight-year transitional period to ensure alternative arrangements are put in place.

"Mapping out how the UK might move to a society where by 2018, there is no need to use a cheque for any type of payment, is no small task," said council spokeswoman Sandra Quinn. "Even if the board decides to set a target date, we are clear that we would need to continue to engage with as many other bodies as possible to understand their concerns and requirements. The demise of the cheque in 2018 is only feasible if interim targets are set and met and it can be demonstrated that no one will lose out."

But the phasing out of cheques has sparked intense concern among groups representing senior citizens. Many elderly bank customers are unhappy about online banking, or have sight difficulties and prefer the comfort of using cheques.

Neil Duncan-Jordan of the National Pensioners Convention said: "Using a cheque to settle your financial affairs is extremely important to older pensioners who might struggle in later life with the use of chip and pin. This option is effectively removing choice from a whole section of the population. The representatives of the Payments Council are completely out of touch with the needs of older consumers and need to think again."

Age Concern and Help the Aged say that 6.4 million over-65s have never used the internet, and the loss of cheques will force older people to keep large amounts of cash at home, leaving them vulnerable to theft and fraud.

Andrew Harrop, head of public policy at the charities, said: "Many older people rely on cheques as their main form of payment and will be very worried about how they will manage if they are withdrawn.

"Our fear is that setting a date will give the green light to banks and retailers to withdraw cheques even earlier than 2018, as some already have. It is vital that before cheques are phased out, the Payments Council ensures there is a practical, safe, paper-based alternative in place which serves the needs of this group."

Small businesses point out that, despite the decline, there are still 1.4bn cheques written every year by individuals and businesses to pay bills, traders or family members.

Stephen Alambritis, of the Federation of Small Businesses, said: "This sends completely the wrong message to the self-employed, small businesses and people who run small clubs and charities.

"We are opposed to the Payments Council dictating this, at the behest of the big banks, when cheques are still hugely popular as a method of payment. We know that students and young adults are using the cheque book less and less, and the banks talk about things such as cheque fraud. But it is terribly wrong to set any date as to when they can no longer be used. They are also an important record of transactions for small businesses."

But Quinn said that most under-30s now barely use cheques, while the under-20s have barely heard of them.

She added: "So far, no group consulted has said 2018 is not feasible although all parties recognise that it would be a major challenge to get right and that currently sufficient and accessible alternatives to cheques do not exist for a number of individuals and users."

The Payments Council board is made up of 16 directors, 12 from the banks and four independents. The independent directors enjoy a power of veto, but are not expected to impose it tomorrow.

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[Jenn! 918]

the milkman?

[Ban Hammer 13,622]

the milkman?

he's getting phased out too.

[Peikko 1,575]

Some people still have one. Supermarkets pretty much killed it which is a shame in many ways, not least selling local produce locally.

And of course, the eco friendly electric milk floats, gotta love those

[Nizzy 1]

I'm glad...because if I have to stand behind one more person taking their sweet time to fill out a check I am going to scream...but than again it will be the same people struggling with the creadit card machine...oh damn it's a lose lose situation...sigh...

[trillium13 84]

I'm glad...because if I have to stand behind one more person taking their sweet time to fill out a check I am going to scream...but than again it will be the same people struggling with the creadit card machine...oh damn it's a lose lose situation...sigh...

Right. My favorite ones are the ones who stand there the whole time while their order is being rung up, then they have to dig through their pocketbook and then fill out the entire check. Then they seem surprised when the cashier needs to see their ID, and it takes them 10 minutes to find that too.

[Nizzy 1]

I'm glad...because if I have to stand behind one more person taking their sweet time to fill out a check I am going to scream...but than again it will be the same people struggling with the creadit card machine...oh damn it's a lose lose situation...sigh...

Right. My favorite ones are the ones who stand there the whole time while their order is being rung up, then they have to dig through their pocketbook and then fill out the entire check. Then they seem surprised when the cashier needs to see their ID, and it takes them 10 minutes to find that too.

lol...oh yes I have seen my fair share of those...

[scandal 951]

This would never happen in America.

[Brit Abroad 166]

British milkmen don't just deliver milk and cream, many supply orange juice, butter, bread and other interesting things for the less mobile. The tradition survives in rural areas with large populations of retirees.

Of course, most people are out to work before the delivery schedule begins in their area, which is why milk became a supermarket product. The milkman in my old area wouldn't turn up til 11am .. bit late for my cornflakes then!

[Marina-Del 10]

I agree with Scandal...I think that this is much much less likely to happen in America...but maybe I'm wrong.

Although saying that, I haven't written a check in YEARS.

[NickD 203]

From my experience several years ago, never let any company automatically charge your credit card or make withdrawals from your checking account. They make it sound very convenient, but was screwed by both of them. Yeah, I got it settled, but only after hours on the phone.

We use to have all local district offices here with a real person to talk to and even threaten, but all that is history, now it's an 800 number where after waiting for an hour, get to talk to someone that constantly says they are sorry if you have a dispute. Please don't tell me your sorry again, just fix the damn problem.

Having a daughter in college is not good, only had ten bucks in my wallet I could give her for gas to get back, but had that ten bucks in my wallet for months. Next time I will go to the bank that I do rarely, will try to get that ten dollar bill back. Don't even ask me whose picture is on a dollar bill, haven't seen one for years.

Try to check my credit card and bank statements daily to make sure all is in order. Would be dead without a computer.

[Gary and Alla 3,694]

I agree with Scandal...I think that this is much much less likely to happen in America...but maybe I'm wrong.

Although saying that, I haven't written a check in YEARS.

Only because, so far, our government doesn't tell banks what to do regarding checks. But the personal check is likely to phase itself out anyway. I rarely use them anymore and really haven't for many years. So few places accept them anymore except local stores that know you, the "Check 21" system has virtually eiminated the "float" time and any place you send a check to is using ACH to debit your account anyway.

[PhiLandShiR 18]

Cheques cost up to £1 each to process – and the number written has been falling steadily.

Link

That sounds pretty pricy to me...

Maybe if they upgraded their systems they could bring that cost down a bit...

[Peikko 1,575]

I agree with Scandal...I think that this is much much less likely to happen in America...but maybe I'm wrong.

Although saying that, I haven't written a check in YEARS.

Only because, so far, our government doesn't tell banks what to do regarding checks. But the personal check is likely to phase itself out anyway. I rarely use them anymore and really haven't for many years. So few places accept them anymore except local stores that know you, the "Check 21" system has virtually eiminated the "float" time and any place you send a check to is using ACH to debit your account anyway.

Talk about a knee jerk response based on ignorance. If you read the article you would know that this is not government led or did you think the payments council board was a branch of government?

[Marilyn. 340]

I have to use checks to pay the rent and car insurance .. they both don't accept any other forms of payment..