Cheque guarantee to end in 2011

NoOneReally

I see on the BBC news http://news.bbc.co.uk/1/hi/business/8273489.stm
That there will be no more cheque Guarantee cards after June 2011 and that HSBC customers with £250 Cheque Cards are having them downgraded to £100 cheque cards.

Now I admit this won't really effect me as although I do have a £100 cheque card with LTSB I have never used it as I cannot find any shop which takes cheques now, but how will this effect banks like NATWEST who issue 2 types of Visa Debit cards, the FULL card and the ALL AUTH card, will everyone after June 2011 have ALL AUTH cards or will they only issue FULL cards and just trust the customer not to go overdrawn etc.

jambosans

NoOneReally wrote: »

Now I admit this won't really effect me as although I do have a £100 cheque card with LTSB I have never used it as I cannot find any shop which takes cheques now, but how will this effect banks like NATWEST who issue 2 types of Visa Debit cards, the FULL card and the ALL AUTH card, will everyone after June 2011 have ALL AUTH cards or will they only issue FULL cards and just trust the customer not to go overdrawn etc.

I wouldn't have thought there would be any effect on the authorisation type of a debit card. Although cheque guarantee debit cards are commonly offline, the removal of the cheque guarantee function is not going to cause an issue. Instead of being a 3-in-1 debit card, it will be a 2-in-1 debit card.

I have an offline Visa Debit card without a cheque guarantee facility from Lloyds TSB, it is not uncommon.

dzug1

It's up to them - it's nothing to do (directly anyway) with cheque guarantee cards. The debit cards will be debit cards with whatever functionality Natwest choose to put on them. They just won't double as cheque guarantee cards any more.

The HSBC downgrade on cheque guarantee is NOW - followed by abolition altogether in 2011

davethorp

Cheque guarantee is pretty much dead anyway. Hardly anywhere on the high street takes cheques anymore

noah271007

This is long overdue. So as for full authorisation/offline debit cards, in future it would be impossible to tell the difference?

noah271007

How can you tell the card is offline visa debit card opposed to full authorisation visa debit card without CG??

jambosans wrote: »

I wouldn't have thought there would be any effect on the authorisation type of a debit card. Although cheque guarantee debit cards are commonly offline, the removal of the cheque guarantee function is not going to cause an issue. Instead of being a 3-in-1 debit card, it will be a 2-in-1 debit card.

I have an offline Visa Debit card without a cheque guarantee facility from Lloyds TSB, it is not uncommon.

EarthBoy

What's going to happen to all the existing debit cards with cheque guarantee facility which don't expire until after 2011? My new First Direct Visa Debit card (with CG) arrived today, and it doesn't expire until September 2012.

Will banks replace them all early? Will existing ones be allowed to continue until expiry? Or will the banks just renege on the guarantee and say that it doesn't mean anything any more?

Extant

The guarantee will cease to be in effect. I doubt we'll all re-issue cards; most people don't manage to keep their cards that long, anyway.

olly300

EarthBoy wrote: »

What's going to happen to all the existing debit cards with cheque guarantee facility which don't expire until after 2011? My new First Direct Visa Debit card (with CG) arrived today, and it doesn't expire until September 2012.

Will banks replace them all early? Will existing ones be allowed to continue until expiry? Or will the banks just renege on the guarantee and say that it doesn't mean anything any more?

If no shops or businesses accept Cheque Guarantee Cards then the guarantee is meaningless anyway.

dzug1

noah271007 wrote: »

How can you tell the card is offline visa debit card opposed to full authorisation visa debit card without CG??

Why would you need to?

If you are shopkeeper the system will tell you if there's a problem

If it's your card the bank will tell you if you are interested enough.

never-in-doubt

noah271007 wrote: »

How can you tell the card is offline visa debit card opposed to full authorisation visa debit card without CG??

The name is full auth card (2-in-1) or full bank card (3-in-1) matey.... but the difference will be on the letter you get with the card/PIN (it will say at the top Full Auth Card or Bank Card).....

I think the differentiation is really down to the user, not the stores - for instance I know both my cards are 3-in-1's so at crossover in 2011 i'll also know they can both go in tesco pay @ pumps etc......

I guess its common sense - plus the store will know which card you have if their systems go down, it would decline the transaction for a Full Auth card