Cheque replacement in the UK
If you regularly receive payment from your customers by cheque, then there are two important announcements that you need to be aware of:
2018 target date set for central cheque clearing closure
On 16th December 2009 the Payments Council Board has agreed to set a target date of 31st October 2018 to close cheque clearing in the UK. Although cheque use has been in decline since 1990, and has fallen by 40% over the last five years, there are still plenty of situations where cheques are used extensively. These include payments between individuals, and payments to sole traders, small businesses, clubs, charities and schools. The goal is to ensure that by 2018 there is no scenario where customers, individuals or businesses, still need to use a cheque.
Cheque card guarantee scheme to finish on 30th June 2011
To pave the way towards the cheque clearing closure, the cheque guarantee card will cease in June 2011 which means that cheques will no longer be useful for instant payments.
Direct Debit as a cheque replacement option
If your clients pay you at least once a year, then Direct Debit is a very attactive alternative to the cheque and can help you to:
- Cut down on administration - eg chasing clients for cheques, managing unpaid cheques
- Improve cash flow
- Cut down on late payments
- Provide a more professional service to your clients.
FREE cheque replacement consultation
If you would like to see how Direct Debit could help your business to prepare for the end of the cheque card guarantee scheme in 2011 and the subsequent central cheque clearing closure in 2018, please contact us for a FREE consultation or download our FREE Direct Debit brochure.
