Still a high demand for cheques
By Louise Naughton
25 February 2011
Cheque usage in the UK may have plummeted by
40% over the last five years but recent figures from foreign
exchange specialist Travelex have led it to claim that cheques are
not as obsolete as many would like to believe.
Travelex issued over 34,000 cheques to
business across the UK in the last year and a survey conducted by
The Cheque and Credit Clearing Company (CCCC) confirmed the
popularity of the cheque.
The survey revealed that over 80% of
businesses saying that they would have an issue if cheques were
withdrawn and a third would have a ‘major issue’.
This is despite consulting firm Dove
Consulting claiming that every cheque that is sent, domestically
and overseas, can cost a company between 350% and 950% more than
sending the same payment electronically.
“We need to ensure that UK businesses
understand the range of payment options available to them well in
advance of the 2018 deadline [to phase out cheques] and we are
already talking to our business customers about this,” said David
Sear, global managing director at Travelex Global Business
Payments.
“There are a lot of great payment alternatives
to the cheque that are very straightforward and can help reduce the
costs and overheads associated with cheques.”
Travelex said it saw a sharp in cheque usage
in 2005 (17%), but claims this fall has levelled out over the last
two years, showing a 6% year-on-year decrease. It says figures for
2011 are expected to follow a similar pattern.