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| How the cheque is being stubbed out | How the cheque is being stubbed out |
| (about 15 hours later) | |
| Find out the shops that do and don't take cheques Tesco is the latest shop to stop taking cheques, with Marks & Spencer due to follow next week. So who will take them and who won't? Mario Cacciottolo dusted off his cheque book to find out. | Find out the shops that do and don't take cheques Tesco is the latest shop to stop taking cheques, with Marks & Spencer due to follow next week. So who will take them and who won't? Mario Cacciottolo dusted off his cheque book to find out. |
| Remember when a chequebook was an essential part of the shopping experience? Not any more. An increasing number of shops are refusing to accept them. | Remember when a chequebook was an essential part of the shopping experience? Not any more. An increasing number of shops are refusing to accept them. |
| Tesco is the latest, saying the move will speed up service at the checkout and help prevent fraud. Other cheque-free zones include Asda, Argos, Boots, Next, Sainsbury's, WH Smith and very soon Marks & Spencer. | Tesco is the latest, saying the move will speed up service at the checkout and help prevent fraud. Other cheque-free zones include Asda, Argos, Boots, Next, Sainsbury's, WH Smith and very soon Marks & Spencer. |
| So is this the end for them? After finally locating and dusting down my much neglected chequebook, I headed to the shops to see how much financial muscle it still flexes. | So is this the end for them? After finally locating and dusting down my much neglected chequebook, I headed to the shops to see how much financial muscle it still flexes. |
| Confusion | Confusion |
| The reaction of shop assistants ranged from surprise to complete confusion. Some looked at them like they were a museum exhibit and had to ask for help, having never dealt with one before. Others would accept anything else - even travellers cheques - but not bank cheques. | The reaction of shop assistants ranged from surprise to complete confusion. Some looked at them like they were a museum exhibit and had to ask for help, having never dealt with one before. Others would accept anything else - even travellers cheques - but not bank cheques. |
| Another common problem was having nowhere to write one out. Shops no longer seem to designate spaces where you can put pen to paper and I often had to balance my cheque book on to the edge of tills and display stands to write one. | Another common problem was having nowhere to write one out. Shops no longer seem to designate spaces where you can put pen to paper and I often had to balance my cheque book on to the edge of tills and display stands to write one. |
| I can hear people behind me in the queue let out a long sigh when I get my cheque book out Cheque user Michael Dyke No cheques at Tesco | I can hear people behind me in the queue let out a long sigh when I get my cheque book out Cheque user Michael Dyke No cheques at Tesco |
| The concept of cheques first came about in the 16th Century, according to Brian Capon of the British Bankers' Association. | The concept of cheques first came about in the 16th Century, according to Brian Capon of the British Bankers' Association. |
| Merchants had goldsmiths look after their gold and wrote notes to other merchants, asking that a certain amount of gold be paid to the bearer of the note. The first actual example of a cheque as we now know it dates from 1659. | Merchants had goldsmiths look after their gold and wrote notes to other merchants, asking that a certain amount of gold be paid to the bearer of the note. The first actual example of a cheque as we now know it dates from 1659. |
| "They became popular because they were safe, effective and efficient," says Mr Capon. "A much better way of handling your money rather than carrying it around with you all the time. | "They became popular because they were safe, effective and efficient," says Mr Capon. "A much better way of handling your money rather than carrying it around with you all the time. |
| Clumsy | Clumsy |
| "There was little chance of fraud because only the wealthy had bank accounts. If a gentleman came in off the street who didn't look wealthy questions would be asked." | "There was little chance of fraud because only the wealthy had bank accounts. If a gentleman came in off the street who didn't look wealthy questions would be asked." |
| There were over 4.4 million personal and business cheques issued every day in 2007. This is compared with 11 million in 1990, the peak year for cheque usage. By 2016 it is predicted there will be only 2.3 million per day. | There were over 4.4 million personal and business cheques issued every day in 2007. This is compared with 11 million in 1990, the peak year for cheque usage. By 2016 it is predicted there will be only 2.3 million per day. |
| There are a number of factors that have contributed to the decline in popularity of cheques, says Mr Capon. | There are a number of factors that have contributed to the decline in popularity of cheques, says Mr Capon. |
| A cheque from 1660, on display at the Bank of England Museum.Enlarge Image | A cheque from 1660, on display at the Bank of England Museum.Enlarge Image |
| "It's now much easier to pay by debit or credit card using the Electronic Point Of Sale (EPOS) system in shops, and you can go on the internet to transfer money via online banking." | "It's now much easier to pay by debit or credit card using the Electronic Point Of Sale (EPOS) system in shops, and you can go on the internet to transfer money via online banking." |
| There are some myths attached with the cheque system, not least that a man once paid a cheque in to a bank that was written on the side of a cow. | There are some myths attached with the cheque system, not least that a man once paid a cheque in to a bank that was written on the side of a cow. |
| But you could use one if you wanted, says Mr Capon. A cheque is simply an instruction to your bank to pay someone. You could write that instruction on a bovine, but banks do have the right to refuse and probably would. | But you could use one if you wanted, says Mr Capon. A cheque is simply an instruction to your bank to pay someone. You could write that instruction on a bovine, but banks do have the right to refuse and probably would. |
| "You could, however, use a blank sheet of paper as a cheque, so long as it has the relevant information," he adds. | "You could, however, use a blank sheet of paper as a cheque, so long as it has the relevant information," he adds. |
| Fakes | Fakes |
| Shops which have stopped accepting cheques say it's because they have become less popular and there was a problem with fake ones. | Shops which have stopped accepting cheques say it's because they have become less popular and there was a problem with fake ones. |
| The decline of the cheque is largely consumer led, says Apacs, the UK trade association representing institutions that deliver payment services to customers. This is why it has pushed for high street shops to ditch cheques. | The decline of the cheque is largely consumer led, says Apacs, the UK trade association representing institutions that deliver payment services to customers. This is why it has pushed for high street shops to ditch cheques. |
| Starbucks do take cheques - but not very often | Starbucks do take cheques - but not very often |
| "We're not predicting the end of the cheque as yet, but its demise is well under way," says a Apacs spokeswoman. | "We're not predicting the end of the cheque as yet, but its demise is well under way," says a Apacs spokeswoman. |
| "People now favour debit cards over cheques on the high street and direct debits, internet and telephone banking to pay their household bills. " | "People now favour debit cards over cheques on the high street and direct debits, internet and telephone banking to pay their household bills. " |
| But the cheque has not fallen out of favour with all consumers. Some are angry that a growing number of shops are refusing to accept them. | But the cheque has not fallen out of favour with all consumers. Some are angry that a growing number of shops are refusing to accept them. |
| "I'm not comfortable about using credit cards because of the risk of fraud, but I feel I am being forced into doing so because of shops like Tesco refusing to accept them," says Michael Dyke, 60. | "I'm not comfortable about using credit cards because of the risk of fraud, but I feel I am being forced into doing so because of shops like Tesco refusing to accept them," says Michael Dyke, 60. |
| Reliable | Reliable |
| "I'm angry that consumers have not been consulted about this and I think it is all driven by money and the handling costs shops have to pay for cheques. Again saving money is being put before the customer. | "I'm angry that consumers have not been consulted about this and I think it is all driven by money and the handling costs shops have to pay for cheques. Again saving money is being put before the customer. |
| CHEQUE - THE FACTS 5m people regularly use guaranteed cheques, compared with 16m in 1996Women make almost 52% more guaranteed cheque payments than menLess than one in ten regular bills paid by cheque, compared with one in three in 19954% of retail spending is paid by cheque, compared with over 60% by debit or credit cardMore than 4.4m business and personal cheques issued each day in 2007, compared with 11m in 1990 Source: Apacs | CHEQUE - THE FACTS 5m people regularly use guaranteed cheques, compared with 16m in 1996Women make almost 52% more guaranteed cheque payments than menLess than one in ten regular bills paid by cheque, compared with one in three in 19954% of retail spending is paid by cheque, compared with over 60% by debit or credit cardMore than 4.4m business and personal cheques issued each day in 2007, compared with 11m in 1990 Source: Apacs |
| "I think phasing out cheques will have serious consequences for some older people. Many still rely on them because they may not have credit cards or a knowledge of how to use them." | "I think phasing out cheques will have serious consequences for some older people. Many still rely on them because they may not have credit cards or a knowledge of how to use them." |
| Mr Dyke says up until recently he mainly used cheques, but is being forced to pay with his bank and credit cards more and more often. There is a lot of huffing and puffing from fellow customers, as well as staff, when he gets out a cheque. | Mr Dyke says up until recently he mainly used cheques, but is being forced to pay with his bank and credit cards more and more often. There is a lot of huffing and puffing from fellow customers, as well as staff, when he gets out a cheque. |
| "I can hear people behind me in the queue let out a long sigh when I get my book out," he says. | "I can hear people behind me in the queue let out a long sigh when I get my book out," he says. |
| Having encountered some huffing and puffing on my shopping spree, I know what he means. | Having encountered some huffing and puffing on my shopping spree, I know what he means. |
| At the end of my spree I have found three places that accepted cheques and four that don't. | At the end of my spree I have found three places that accepted cheques and four that don't. |
| After a flurry of use, I think my cheque book will be left in a drawer to become the museum piece it looks destined to be. | After a flurry of use, I think my cheque book will be left in a drawer to become the museum piece it looks destined to be. |
| />Below is a selection of your comments. | |
| The report is all about retail and I agree that the chip and pin credit and debit cards are much quicker to use. However, cheques are still the most efficient way, apart from cash, for the mojority of individuals to pay money to each other. Not everyone has internet banking to transfer money and sending a cheque in the post is often easier for some than going to a bank and arranging a transfer. Online payment systems as used by internet auction sites, are just too expensive, however convenient they are. The cheque still has a place, but its use will become limited to personal transactions between individuals. John Ferris, Coventry | The report is all about retail and I agree that the chip and pin credit and debit cards are much quicker to use. However, cheques are still the most efficient way, apart from cash, for the mojority of individuals to pay money to each other. Not everyone has internet banking to transfer money and sending a cheque in the post is often easier for some than going to a bank and arranging a transfer. Online payment systems as used by internet auction sites, are just too expensive, however convenient they are. The cheque still has a place, but its use will become limited to personal transactions between individuals. John Ferris, Coventry |
| Cheques are particularly useful for paying local traders - plumbers, etc - who won't want to carry round an EPOS with them all the time, but may charge more than most people keep in cash. Apart from that, I very rarely use cheques at all - with online banking, it's so easy to pay money directly into someone's account, and my credit card mops up all other purchases.Stevie D, Selby, UK | Cheques are particularly useful for paying local traders - plumbers, etc - who won't want to carry round an EPOS with them all the time, but may charge more than most people keep in cash. Apart from that, I very rarely use cheques at all - with online banking, it's so easy to pay money directly into someone's account, and my credit card mops up all other purchases.Stevie D, Selby, UK |
| Cheques are actually making a come-back in some small shops. I was in a small bookshop that no longer accepts credit cards because of the cost of chip & pin; I had to return to car & dig out cheque book, which, fortunately, I had with me.Alan, Shaftesbury Dorset | Cheques are actually making a come-back in some small shops. I was in a small bookshop that no longer accepts credit cards because of the cost of chip & pin; I had to return to car & dig out cheque book, which, fortunately, I had with me.Alan, Shaftesbury Dorset |
| What worries me about the cheque book disappearing is I still use cheques to pay the self-employed, eg plumber, electrician. Will I have to give them large sums of cash (theft risk), or will they have to invest in portable chip and pin machines (and put their prices up to cover this)?Heather Arnold, Gloucester, England | What worries me about the cheque book disappearing is I still use cheques to pay the self-employed, eg plumber, electrician. Will I have to give them large sums of cash (theft risk), or will they have to invest in portable chip and pin machines (and put their prices up to cover this)?Heather Arnold, Gloucester, England |
| I had a cheque book stolen in the post a year or two ago. It was a nightmare with Sainsbury and several other supermarkets threatening to sue when the fraudulent cheques were refused. It took months of writing letters and reporting the matter to the police to deal with the matter. I wrote to the CEOs of the various companies suggesting they should stop taking cheques because of their lack of security. I am delighted my excellent advice is being taken!Mike Newland, London. England | I had a cheque book stolen in the post a year or two ago. It was a nightmare with Sainsbury and several other supermarkets threatening to sue when the fraudulent cheques were refused. It took months of writing letters and reporting the matter to the police to deal with the matter. I wrote to the CEOs of the various companies suggesting they should stop taking cheques because of their lack of security. I am delighted my excellent advice is being taken!Mike Newland, London. England |
| Retailers stopping accepting cheques is all very well and it suits them as it is seen as an expense to process a piece of paper. However, if they disappear completely how will I pay small traders or give money to friends in a secure way? I think they'll need to stay in some form for a while yet. Phil Antill, Leicestershire | Retailers stopping accepting cheques is all very well and it suits them as it is seen as an expense to process a piece of paper. However, if they disappear completely how will I pay small traders or give money to friends in a secure way? I think they'll need to stay in some form for a while yet. Phil Antill, Leicestershire |
| I refuse to use credit or debit cards. They are too vulnerable to fraud and encourage profligacy. I pay everything by cheque or by cash except for regular payments which go by direct debit or standing order. The apparent demise of the cheque is driven principally by the retail chains and banks cutting handling costs. I think the Government should step in to require all retail outlets to accept cheques.Ian Sedwell, Weymouth, UK | I refuse to use credit or debit cards. They are too vulnerable to fraud and encourage profligacy. I pay everything by cheque or by cash except for regular payments which go by direct debit or standing order. The apparent demise of the cheque is driven principally by the retail chains and banks cutting handling costs. I think the Government should step in to require all retail outlets to accept cheques.Ian Sedwell, Weymouth, UK |
| I can place an online order against a credit card at lunchtime on Monday and receive the item first thing on Tuesday morning.Try getting the item in less that a week or ten days using a cheque. But when sending cash to a small club or a friend then using a cheque is ideal. Horses for courses.Graham Noyce, St Ives | I can place an online order against a credit card at lunchtime on Monday and receive the item first thing on Tuesday morning.Try getting the item in less that a week or ten days using a cheque. But when sending cash to a small club or a friend then using a cheque is ideal. Horses for courses.Graham Noyce, St Ives |
| It is bad to know that Tesco and other superstores have completely stopped accepting cheques. It does make sense that paying by cheques does involve cost and time, but I still think that this cost is much less than 2.5% being paid by these retailers to Credit Card companies companies to process Credit Card transactions. Also, there are lot many (mostly vulnerable) people who do not have knowledge or access to technology like internet banking or Chip/Pin. Retailers should behave sensibly and should not fully stop accepting cheques, though they can discourage such transactions by directing them to say Customer Service desk (anyway, they already do so if they have billed you incorrectly or if you need a refund). Shamsher Khan, Staines, UK | It is bad to know that Tesco and other superstores have completely stopped accepting cheques. It does make sense that paying by cheques does involve cost and time, but I still think that this cost is much less than 2.5% being paid by these retailers to Credit Card companies companies to process Credit Card transactions. Also, there are lot many (mostly vulnerable) people who do not have knowledge or access to technology like internet banking or Chip/Pin. Retailers should behave sensibly and should not fully stop accepting cheques, though they can discourage such transactions by directing them to say Customer Service desk (anyway, they already do so if they have billed you incorrectly or if you need a refund). Shamsher Khan, Staines, UK |
| I avoid chip and pin whenever possible and use cheques instead because chip and pin is so unsafe. How can you prove who pressed the four buttons containing your PIN? Cheques have my signature, a copy of which I have supplied to the bank. Easily proven or disproven. I too believe retailers should be made to accept cheques.Steve, Berkshire, UK | I avoid chip and pin whenever possible and use cheques instead because chip and pin is so unsafe. How can you prove who pressed the four buttons containing your PIN? Cheques have my signature, a copy of which I have supplied to the bank. Easily proven or disproven. I too believe retailers should be made to accept cheques.Steve, Berkshire, UK |
| The problem with no longer accepting cheques is when the system for using your card and pin number goes down. I recently had filled my car up with petrol, went to pay and found that the chip and pin system was not working. I was told I would have to find another means of payment. Bit difficult when, as the systems were down for my bank, the cash machines were no longer working and the garage did not take cheques. At least at a garage they have a system where you give your details and pay at a later date as it is not easy for them to recover the goods, how many supermarkets are going to allow you to take the goods home if you haven't paid for them, even if you have just spent an hour wondering around the shop.Kath, Wirral | The problem with no longer accepting cheques is when the system for using your card and pin number goes down. I recently had filled my car up with petrol, went to pay and found that the chip and pin system was not working. I was told I would have to find another means of payment. Bit difficult when, as the systems were down for my bank, the cash machines were no longer working and the garage did not take cheques. At least at a garage they have a system where you give your details and pay at a later date as it is not easy for them to recover the goods, how many supermarkets are going to allow you to take the goods home if you haven't paid for them, even if you have just spent an hour wondering around the shop.Kath, Wirral |
| I find it hard to believe anybody here supports using cheques in shops. I have had a bank account for almost a quarter of a century and have never used one in a shop; always cash or cards. It must be at least a decade since I remember having to wait behind somebody slowly filling one out in a check out queue. Is the day ever going to come in the UK when people say to a change "about time, I much prefer the new way" ? Always looking back to an imaginary golden age. Des, London, UK | I find it hard to believe anybody here supports using cheques in shops. I have had a bank account for almost a quarter of a century and have never used one in a shop; always cash or cards. It must be at least a decade since I remember having to wait behind somebody slowly filling one out in a check out queue. Is the day ever going to come in the UK when people say to a change "about time, I much prefer the new way" ? Always looking back to an imaginary golden age. Des, London, UK |
| We run a guest house and take payment by cash or cheque only because of the costs of taking payment by card. Our business is mainly business people during the week and key to them is price, if we had to increase our price to cover the additional costs of taking payment by card we would lose a considerable amount of business. That said cheques are a liability, as we have found to our cost and we would much prefer to take cards if it made financial sense.Debbie Smyth, Elland, West Yorkshire | We run a guest house and take payment by cash or cheque only because of the costs of taking payment by card. Our business is mainly business people during the week and key to them is price, if we had to increase our price to cover the additional costs of taking payment by card we would lose a considerable amount of business. That said cheques are a liability, as we have found to our cost and we would much prefer to take cards if it made financial sense.Debbie Smyth, Elland, West Yorkshire |