Cheques to die within five years following 66 per cent drop in use

[panda_4]

THE cheque has one foot in the grave with predictions it could be killed off within just five years.

It has raised fears the move could result in a repeat of the massive backlash that resulted in the UK and saw the decision to ban cheques overturned.

The Australian Payments and Clearing Association's Milestones Report released today showed cheque use plummeted by 66 per cent in the 10 years to December.

The report stated it was only a matter of time before the downhill shift saw cheques wiped out completely.

''Based on the current rate of decline and assuming no plateau in cheque use, it could be predicted that cheques will no longer be used in Australia in 2018,'' the report stated.

But a similar move in the UK to ban cheques by October 2018 provided disastrous and strategic business relations company RFi's director, Alan Shields said it resulted in a complete backflip.

''You have to look at what happened in the UK, the UK Payments Council said they were getting rid of cheques but there was such a backlash they had to do a 180,'' he said.

''They wouldn't want to go down the same road as the UK.''

The UK Payments Council postponed its decision in 2011 to ban cheques following significant outrage and announced, ''cheques will continue for as long as customers need them.''

Mr Shields said the death of the cheque would be inevitable if businesses started to turn away cheques.

''It's going to be contingent on people accepting cheques, if they stop accepting cheques then that's going to be the biggest nail in the coffin,'' he said.

''The people that use them are a minority but it's not going to be an easy drug to kick.''

APCA's report found between December 2011 and December 2012 the total number of cheques written fell by 12.5 per cent from 256 million to 224 million per year.

APCA chief executive Chris Hamilton said the dramatic shift away from cheque use forced its future to be seriously questioned.

''There's a lot of nostalgia, there's lot of history associated with cheques . . . but they really are quite expensive as a payment medium,'' he said.

''As people find good electronic alternatives and as they live more of their lives online and electronically then the cheque is just less useful.

''This is a product that's gradually phasing itself out, our biggest concern in all of that is there are still some people including older Australians or for historical reasons those people that are still very attached to their cheques.''

The report said cheques volumes had fallen across the world with data compiled from 19 developed countries including Australia and found volumes fell from 34 billion in 2010 to 31.6 billion in 2011.

Read more: http://www.news.com.au/money/banking/cheques-to-die-within-five-years-following-66-per-cent-drop-in-...

[id_pending]

I write at least 4-5 personal cheques a week....at least. Im already onto my second book this year.
Don't often receive one myself although I do occasionally.

Doesnt cost me any extra to write cheques...comes with my everyday account which doesnt even have a monthly service fee.

[azureline**]

Yes, cheques are free for us too.

[id-to-post-anything]

I have a cheque book cause there is the odd place that doesnt take EFTPOS. eg my daughter sees a certain semi-medical person (dont want to give to much info 🙂 ) who only takes cheque or cash. Cash is a real PITA to remember to get every time. Much easier to write a cheque.

Mind you, this is only once every few months, and I have had the same cheque book for a few years.

[*new2vintage]

I am not surprised about cheques - I've never used them. It's a wonder money orders still exist. They're the most expensive pieces of paper that I know about.

[cherry*135]

We receive cheques at work also, every now and then. From retired people, and from a Community Society ( I did mention they could pay by net transfer, fell on deaf ears).

[karliandjacko]

We receive cheques at work also, every now and then. From retired people, and from a Community Society ( I did mention they could pay by net transfer, fell on deaf ears).

I got paid with a blank signed cheque last week, could have charged any amount I wanted  :^O

[happyroo_bunji]

I found my cheque book when cleaning out my car.  The last time I wrote a cheque was july 2007.

I find it much easier to either PayPal, direct deposit, or use my debit credit card.  The money comes out straight away so I don't have to worry about not having enough money in the account to cover the cheque

[twinkles**stars]

money orders are still safe....you can not cancel a money order like a cheque etc

when buying my house I was asked for a deposit via cheque....bit hard leaving  10% deposit via eftpos lol. 

[cherry*135]

Bank cheques will probably still be available to pay bonds and house deposits etc.

karli&jacko - tempted to add a few 000's on?:^O

[tulip*place]

We sometimes get cheques in.  They take more time to process, as you have to physically go to the bank and deposit the cheque, then it could take time for funds to clear or you could receive a letter from your bank returning the cheque due to insufficient funds,  the boss prefers EFT as there are  no  issues once the money is in  your account..  The majority of our bills are paid by EFT.  A few years back we paid an account for $89.00 by cheque, posted to an address at  Seven Hills.  The following week on checking our bank statement I noticed a debit in the amount of $895.00 with a cheque no. which we hadn't even used.  I immediately reported it to the bank and the next day another debit appears for $890.00 with the next chq sequence from the previous day.   The bank immediately did an investigation and we had to submit stat decs that these cheques were not drawn by us.  The payee advised that someone had stolen mail from their mail box and some of their clients were having the same problemss we were experiencing.  We eventually received a copy of the 2 cheques.  Someone had obviously stolen our cheque and copied the signature onto their supply of cheques.  Both cheques were crossed and our are not, both were paying Asian names and presented at the same  bank in western suburbs.   Don't know if they were caught.