Security reminders for writing or receiving cheques

In response to the fact that we are using cheques less often than ever before, the Cheque and Credit Clearing Company has published a reminder guide to help people avoid common pitfalls and safeguard themselves from fraud when writing and receiving cheques.

The payment industry's latest cheque data, published in The Way We Pay 2009: UK Cheques, reveals that cheque volumes are declining at their fastest ever rate, falling by 12 per cent last year. The drop is most marked amongst cheques written by individuals, where the number written has fallen 47 per cent in just six years, from 1.35 billion in 2003 to 711 million last year. On average, each adult wrote 14 cheques and received just five cheques last year, compared with 2003 when we each wrote 28 cheques and received seven.

The decision by many shops to stop accepting personal cheques has been a major factor driving the fall in cheque usage. Consumers are also using cheques less and less for their bill payments, turning instead to the convenience of Direct Debits and the flexibility of internet banking. Increased debit card use and greater acceptance of cards by retailers have also reduced the use of cheque payments on the high street. Last year, cheques accounted for just one in 20 personal non-cash transactions, down from almost one in five in 1998.

Nevertheless, cheques do remain popular for certain payments, from paying for school trips through to birthday presents. Around 18 per cent of all cheque payments are used to pay bills, and 25 per cent of personal cheques are used for person-to-person payments.

If used properly, cheques are a convenient and safe way to make or receive a payment. However, it is important that cheque users follow some simple steps when writing or receiving cheques, and the Cheque and Credit Clearing Company has published a helpful, new consumer advice guide: Advice When Writing and Receiving Cheques, which is available to download from the Cheque and Credit Clearing Company's website at chequeandcredit.co.uk.

Angela Thomas, Managing Director of the Cheque and Credit Clearing Company, said: "Cheque usage has been decreasing steadily since the early 90s and in the retail sector the decline has been particularly rapid. Cheques accounted for just 2 per cent of non-cash payment volumes in shops last year, compared with 12 per cent in 2000.

"Cards and automated payments are becoming ever more popular but, even so, we are still writing a huge number of cheques every day. Therefore, it remains important that we follow common sense advice to ensure the cheques we write get to the correct account without unnecessary delay and that they are protected against fraud."