So the Payments Council has shelved plans to abolish the use of cheques by 2018. Let’s face it cheques are a pain. You need to get them to a bank and there is the possibility they can bounce. For us 5 miles out of town banking is a real hassle and to be honest (and against my better judgement) often gets left. That’s because it takes an hour to do it and if you go to Winchester you have to pay to park as well. Cheques are a pain.
But here’s the rub. For a small business they are the only way other than cash (and don’t get me talking about the daylight robbery of banks charging to bank cash) that you can freely transact at the time of settlement. Card payments are great but there is a cost in equipment and for a micro business this may not be viable. I’m sure that the banks have a wonderful business case in support of card payments but they are not free – they are not even cheap.
So until they can come up with a viable alternative, let’s no be so daft as to remove the only alternative for a lot of small business. Let’s face it, if there was an alternative we’d use it and cheques would die out naturally.