Traditional cheque system set to go
Updated on 16 February 2009
The cheque is 350 years old but its days as a payment method look numbered as consumers turn to high-tech alternatives.
The earliest cheque known to be in existence is the UK is dated February 16, 1659.
It is made out for £400, signed by Nicholas Vanacker, is payable to a Mr Delboe and drawn on Messrs Morris and Clayton, scriveners and bankers of the City of London.
In 1717 printed cheques were introduced for the first time and by the late 19th century cheques were being widely used, as they were the only real alternative to cash.
But despite the use of cheques peaking relatively recently in 1990, when 11 million cheques were issued each day, their volumes have been in decline for 18 consecutive years, with the use of cheques falling at a record rate in 2007.
The decline of the cheque has been driven by the introduction of other payment methods, such as debit card to pay for items in shops, and direct debits and standing orders to pay bills.
This decline is set to continue, particularly as technology continues to offer new ways of paying for things, such as contactless payment cards and payments through mobile phones.
Last year the Payments Council consulted on the potential closure of the cheque clearing system, possibly by 2018, although it said the process would have to be managed and alternatives to cheques would need to be developed.
The decline in the popularity of cheques has been accelerated by retailers no longer accepting them as a payment method.
Shell petrol stations kicked off the process in 2005, when it became the first retailer to stop accepting cheques, and by the end of last year the vast majority of major retailers had followed suit.
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