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Sponsored by:12/17/09
Reuters reports that the U.K. Payments Council has placed a resting date on the kingdom's use of checks, calling an end to a payment method that has been widely used in the United Kingdom for the last 300 years.
British banks voted to phase out the check in favor of more modern payment methods.
The board of the U.K. Payments Council agreed yesterday to make Oct. 31, 2018, the target date for wrapping up the check clearing system. The board is largely made up of Britain's leading banks.
Paul Smee, the council chief executive, says more efficient methods of payment are trumping the check:
"There are many more efficient ways of making payments than by paper in the 21st century, and the time is ripe for the economy as a whole to reap the benefits of its replacement."
The use of checks has fallen drastically in the past 10 years as consumers have moved toward debit and credit purchases. Last year, around 3.8 million checks were written per day in Britain, compared to a peak of 10.9 million in 1990, the council said.
It costs about £1 to process every check.
Checks have all but disappeared in high-tech countries like Sweden and Norway, and their use is under review in Ireland, South Africa and Australia.
Addy Frederick, a spokeswoman at the payments council, says:
"The next generation probably won't even have a checkbook."
Checks are expected to be phased out "gradually," ensuring that consumers have adequate access to user-friendly alternatives. A review will take place in 2016 before checks are finally abolished.
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