Safety tips for cheque users

The Cheque and Credit Clearing Company (C& CCC) and APACS, the UK payments association, has today (26 February 2008) issued a new advice guide for consumers on how to write and receive cheques safely.

As people use cheques less and less, particularly as more retailers like Tesco and Marks & Spencer stop accepting them, they may not be as aware as they have been in the past about how to use them safely. This new guide brings together all the best easy-to-follow advice for customers who still write and receive cheques, to ensure cheques clear without unnecessary delay and to prevent fraud.

Although personal cheque use has halved in the last ten years, from 1.8 billion cheques in 1997 to 890 million last year, cheques remain popular for certain payments, including subscriptions to clubs and societies, paying bills and for giving birthday gifts. Recent research conducted by C& CCC has shown that over half of all UK account holders are concerned about receiving cheques and around a quarter don’t like to write cheques because of the risk of fraud.

Sandra Quinn, director of communications at APACS and spokesperson for C& CCC, said: “Cheques have been around for over 300 years and in the last few years they’ve become less popular as other payment methods have come along. As cheque payments become less common, it’s easy to forget some of the rules for writing and paying in cheques. This new guide offers straightforward advice to keep safe, and tips on alternative payment methods.”

Simple steps such as correctly dating a cheque and drawing a line through any unused space can help prevent misuse and ensure that the money clears without unnecessary delay.

In 2007 on average each adult only received 5 cheques and made 1.5 cheque payments per month. However, whilst cheque use on the high street has now fallen to the extent that they make up less than 4% of all payments, and last year overall cheque volumes fell by a record 10%, they are still used very regularly for certain types of payments such as person to person payments and paying bills.

The guide also warns consumers against accepting cheques from people they don’t trust, especially for high-value transactions.

The guide is available to download at apacs.org.uk and chequeandcredit.co.uk.