No return for cheque guarantee card


The Payments Council, the organisation which sets the strategy for UK payments mechanisms, have announced that cheque guarantee cards will not be re-introduced.

Research has showed there is no demand for the scheme, which ended this year, to return.

The cheque guarantee scheme guaranteed that banks would honour a cheque up to £50 or £100, even if there were insufficient funds in an account.


The news comes after a year when there was uncertainty about the future of cheques themselves, at one stage their abolition was proposed by the Payments Council, however after a public outcry they were saved.

84% of businesses said they still accepted cheques whilst just 3% of firms do not allow cheques as a method of payment, usually due to the removal of the cheque guarantee card scheme. Earlier this year.

Research also revealed 40% of people using the system were using it incorrectly as people are writing their card number on the back of a cheque before posting it, despite the fact the guarantee is only applicable when payment is made in person.

Adrian Kamellard, Chief Executive of the Payments Council said: “We’ve committed that cheques are here to stay, so we were pleased that the demise of the guaranteed cheque has had little impact on the way people use cheques, nor has it stopped businesses accepting them.”

He continued: “It’s particularly reassuring to find that older people have taken the change in their stride, however, our research has highlighted that there is a small minority of customers and businesses who might need extra help – so that will be what we’re focussing on next.”