Cheque use in rapid rate of decline

The number of people using cheques decreased dramatically in 2007, according to latest figures released by the banking sector.

The Association of Payment Clearing Services (Apacs) recorded a 9% reduction in the volume of cheques in circulation, taking last year’s total figure to 1.6 billion.

Apacs claim this is the fastest rate of decline since cheque use began to fall in 1991.

With debit cards now the preferred method of payment, experts are predicting the cheque will eventually fade into the depths of banking history.

Many retailers stopped accepting cheques in 2007, whilst supermarket giant Tesco is preparing to phase them out later this year.

Meanwhile, utility providers have faced fierce criticism for attempting to deter customers from using cheques by offering a discount to those paying by direct debit.

In November last year new rules came into effect to guarantee cheque payment within six days, as part of a drive by the banking industry to clarify the cheque clearing process.