Cheque guarantee cards to be phased out

Cheque guarantee cards could become obsolete within the next two years, the Payments Council has announced.

Following a consultation, the Council has confirmed that the Cheque Guarantee Card Scheme may be withdrawn from 2011.

However, it will still be possible to use cheques for other transactions where an accompanying card is not required.

‘The Council believes that alternatives to the guaranteed cheque exist and are widely available, and that a well-planned withdrawal of the scheme will not cause any significant problems for users or acceptors,’ the body said.

It stated that the use of guarantee cards has declined rapidly, falling by 70% in the last five years.

But Jane Vass, Financial Services Policy Adviser at Age Concern and Help the Aged, warned against removing the scheme completely. ‘While we recognise that the use of cheques is dwindling, they are still important for those older people who are uncomfortable with using credit or debit cards.’

She continued: ‘It is crucial that these payment methods aren’t lost, unless a wide range of alternatives is available for older people.’