Checking out time for cheques

10th July 2010
The Payments Council recently announced that the target closure date for UK cheque clearing is 31st October 2018 heralding the end of centuries of cheque use.

Cheques have been around in various guises since Roman times although the first pre-printed forms printed on cheque paper to prevent fraud were introduced by the Bank of England in 1717.

The final decision on the closure date will be made in 2016 and will depend on a clear consensus across all interested parties.

Although these dates seem a long way off something that you must consider before then is that the use of guaranteed cheques (i.e. presenting a cheque together with the cheque guarantee card which assures the vendor they will be paid up to a certain value such as ₤100) will cease from 30th June 2011.

So now is a good time to think about what your company policy is for accepting cheque payments.

We actively encourage our clients to accept and make BACS payments as it speeds up the accounting process, is more accurate, is economical beneficial and less time consuming than cheques. Alternatives are credit card terminals and of course old fashioned hard cash!

If you would like to discuss any aspect of these changes do get in touch!

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