Payments Council to hold meetings with sector on future of cheques4

Fundraising | Vibeka Mair | 7 Jul 2010

The Payments Council is to hold a series of meetings with the voluntary sector on the future of cheques and alternative methods of payments.

The workshops, which start next week, will explore how and why charities use cheques and the alternatives available.

The Payments Council had planned to close cheque clearing services in the UK by October 2018. However, following lobbying from the charity sector and criticism from the Treasury Committee, the Council has now said it will not stop cheques in 2018, unless it is satisfied that adequate payment alternatives are in place by 2016.

Paul Smee, chief executive of the Payments Council said: “Our challenge now is to understand, in more detail, the needs of those who rely on cheques. These sessions are being arranged to understand how we can help the charitable sector administer the payments they need.”

The Institute of Fundraising, the Small Charities Coalition, NCVO, the Central Council of Physical Recreation, the Churches Legislation Advisory Services, CFDG, the Association for Charitable Foundations, the Office for Civil Society and the Charity Commission will be working with the Payments Council throughout the series of workshops.

Directory: Charity Commission | Institute of Fundraising | National Council for Voluntary Organisations (NCVO)

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Barry Gower
15 Jul 2010

The reality is that the cheque is simply just an instruction or autorisation to the recipient to claim a payment from the issuer's bank. So nothing needs to change - the donor can still give the charity a 'cheque'. Only now the cheque is treated in a simlar way to a debit card payment and the charity process the 'instruction' in the same way as if the donation had been made over the telephone via a debit card. The charity keeps the cheques as evidence of the instruction, and the bank makes the payment in the normal (debit card) way. Simples !

[Reply]

Norman Wilson
13 Jul 2010

There are a number of small organisations such as breakfast clubs, WI's, Masonic Lodges who collect fees regularly from members for outings and meals. These organisation do not have economic facilities to book on-line and or their members do not have internet access. They use cheques as a means for payment to avoid large amounts of cash being carried.

[Reply]

Marian Nicholson
9 Jul 2010

I do not wish to give my credit/debit card details to every tradesman who cuts my hedge, unblocks my drains, etc. And I don't imagine I am alone... Therefore I will be forced to pay cash - therefore the temptation for such workmen to fail to report (some of) these payments will end up losing the Treasury a small fortune!
The cheques for £2 to £20 our charity recieves will NOT be replaced with credit/debit payments, cash or Postal Orders for reasons of security and inconvience. Many small charities will close...
What a result!

[Reply]

Simon
7 Jul 2010

Paul Smee says the challenge is to "understand, in more detail, the needs of those who rely on cheques" - would that not have been a logical approach to adopt before the announced the end date for Cheques?

[Reply]

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