Cheques bouncing their way into history

Waiting for the proverbial 'cheque in the post' will soon be a thing of the past after the Payments Council Board announced the antiquated payment form would cease to be legal tender in 2018.

With online banking and credit cards fast making paper cheques obsolete and with customers unwilling to wait for days before their money clears, the board announced that it will close the central cheque clearing by 31 October, 2018.

Many voluntary organisations and small businesses still rely on cheques both for paying suppliers and for receiving payments (particularly from older supporters) but the board insists that no one will be left without a suitable payment option.

"The goal is to ensure that by 2018 there is no scenario where customers, individuals or businesses, still need to use a cheque," the Payments Council said in a statement.

"The board will be especially concerned that the needs of elderly and vulnerable people are met."

"Customers are not likely to see any immediate change as the target date is still a long way off," said Paul Smee, chief executive of the Payments Council.

"There are many more efficient ways of making payments than by paper in the 21st century, and the time is ripe for the economy as a whole to reap the benefits of its replacement.

"But the real challenge lies ahead if we are going to be comfortable to wave goodbye to the cheque, which undeniably occupies a unique place in British culture."

The first cheque was written 350 years ago.