MSE News: Cheque guarantee cards to be abolished tomorrow

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"From 30 June these cards, used to guarantee cheque payments in shops, will no longer be accepted"

Read the full story:
Cheque guarantee cards to be abolished tomorrow

Consumerist

Phone or online transfers under the Faster Payments scheme are also a reliable and quick form of payment, which can be made instantaneously 24/7, as long as you keep to your providers sending limit

Not on my planet Earth they're not.

Edit
Shouldn't this post be on the Banking board?

Absinthe_Fairy

I don't use cheques very often but they're perfect for sending through the post, particularly when I don't want the recipient to know my bank account/card details, or ask for theirs. I'd be disappointed if they vanished for good, and I'm not some old fogey stuck in the past, I'm 25!

pete_v

Absinthe_Fairy wrote: »

particularly when I don't want the recipient to know my bank account/card details

You haven't noticed that your account number and sort code are printed on the bottom of every cheque, then?

Pete

fozmcfc

I agree with the Cheque Guarantee card going as a debit card is an ample replacement.

The vast majority of people who will not like it are those who have no money in the bank until Monday and pay by cheque on Friday, knowing the money will be in the bank by the time the cheque is cashed.

At the moment definately see the point of them if a company is happy to recieve a cheque and then send the goods/provide the service once the cheque has cleared.

pete_v

Consumerist wrote: »

Phone or online transfers under the Faster Payments scheme are also a reliable and quick form of payment,

Not on my planet Earth they're not.

What sort of reliability / speed problems do they have? So far I've been trusting them to work and show up within a couple of hours at the most, and I haven't been disappointed. What do I need to look out for?

Pete

fozmcfc

pete_v wrote: »

You haven't noticed that your account number and sort code are printed on the bottom of every cheque, then?

Pete

True and of course your account name MR or MRS J.Bloggs for instance, plus your branch details as well when I last had a cheque book.

plumber2009

The sooner cheques are gone the better.

Cheques are slow and there is always a risk of the funds not being cleared. Especially now that guarantee cards have been abolished.

Most companies force Direct Debit upon us in order to make a monthly saving, E.G Virgin Media. Pay by DD and save £5 per month.

The faster payments system is faster and safer for personal payments and debit/credit cards to pay utility bills, in shops etc and online payments. Cheques often arrive late when sent in post which usually results in late penalty fees.

I have had no need to write a cheque in years and most people/organisations wont accept them anyway due to additional processing costs.

guesswho2000

I don't agree with them going, purely because I like having the option! That and the gold hologram on my card!

And they are useful for paying for takeaways when you haven't got any cash in the house! (The limit never being an issue either, I don't envisage ever paying £250 for a kebab and chips!)

Not just for old people either, I'm only 25

corbyboy

Can anybody explain about the "guarantee" aspect of the cheque guarantee card? Does it do what is says? Does it guarantee payment no matter what? Even if there is no money in the account?

I hope they don't withdraw cheques completely. There is no other simple way to make small personal payments that leave a useful paper trail. When a plumber comes round you can hardly pay with a debit card or ask them to hold on while you make a bank transfer.

guesswho2000

corbyboy wrote: »

Can anybody explain about the "guarantee" aspect of the cheque guarantee card? Does it do what is says? Does it guarantee payment no matter what? Even if there is no money in the account?

I hope they don't withdraw cheques completely. There is no other simple way to make small personal payments that leave a useful paper trail. When a plumber comes round you can hardly pay with a debit card or ask them to hold on while you make a bank transfer.

Yes, the guarantee, when used as directed (as in the retailer notes the number, expiry etc on the back of the cheque) guarantees payment regardless of available balance. Of course knowingly guaranteeing (or even writing) a cheque with insufficient funds (or available overdraft) is illegal, although in reality will simply incur lots of fees and charges.

Cheques are staying until 2018 at least, with a full review of the situation in 2016, I completely agree, they still do have a function in daily life!