What alternatives are there to cheques for consumers?
This depends on the type of payment. Many already exist but may need adapting, explaining or making more widely available. Using cheques can be a matter of habit and the Payments Council is looking at how they can encourage customers to make better use of alternatives that already exist. The Pay YOUR way campaign, launched in February 2011 by the Payments Council and supported by the payments industry and consumer groups, features an educational website – www.PayYOURway.org.uk - providing consumers with up-to-date information on all forms of payment available to them.
Many consumers already choose to use Direct Debits and standing orders for paying regular bills and commitments. Credit and debit cards have, by and large, overtaken cheques for retail purchases and CHAPS provides an electronic, irrevocable, same-day payment system, usually for high-value payments. Phone and internet banking are also increasingly used to make payments and many banks now offer the Faster Payments Service for same-day phone and internet payments. Emerging solutions include mobile payments, prepaid cards and new forms of online payments.
The Payments Council will be supporting work on innovation to continue to encourage a wide range of alternatives being available to users, and will be evaluating progress before making any final decision on the 2018 target date for closing the cheque clearing.