Summary
Due to the steady decline of the usage of cheques, the board of the UK Payment Council has decided that by October 2018 all cheques should become obsolete. This means there should not be any scenario where a cheque would be needed. This plan will continue only if other forms of payment improve. The final decision will be made in 2016, after a progression check on other systems of payment. The obstacles standing in the way are that many small businesses, clubs, sole traders and schools use cheques as their primary form of payment and that many cheque users are uncomfortable with new technology. New technology that could possibly replace cheques would include contact-less technology and the usage of mobile phones to make payments.
Due to the steady decline of the usage of cheques, the board of the UK Payment Council has decided that by October 2018 all cheques should become obsolete. This means there should not be any scenario where a cheque would be needed. This plan will continue only if other forms of payment improve. The final decision will be made in 2016, after a progression check on other systems of payment. The obstacles standing in the way are that many small businesses, clubs, sole traders and schools use cheques as their primary form of payment and that many cheque users are uncomfortable with new technology. New technology that could possibly replace cheques would include contact-less technology and the usage of mobile phones to make payments.
Connections
A cheque is just a piece of paper on which you promise to pay the recipient. The flaw of this is the fact that it is merely a promise with no real value. A business can suffer losses if they receive a NSF cheque. However, the discontinue usage of these papers would mean businesses would have to turn towards other methods of payment, such as cash, credit or debit. The cons of other forms of payments are easily identifiable, carrying and transporting large sums of cash is both risky and unrealistic. Most credit and debit cards charge a fee every time it is used, both to the user and the receiver. This would lead to unnecessary expenses compared to using a cheque. Thurthermore, businesses with high expenses may not be able to cover all costs with their credit card limit. And the most significant disadvantage is the interest rates charged to unpaid amounts, either due to forgetfulness or to the lack of liquid assets. Lastly, the lost or theft of a card could do colossal damage to a company.
Reflection
I personally had never used or received a cheque in my 16 years of living; I do not plan to use one in the near future. However, I realize that most people receive their paycheck, as you can probably guess, in a form of a cheque rather than through direct deposit. Continuing, demanding that everyone learn the usage of new technology is cruel and unreasonable, some elderly people are used to only paying by cash, using a cheque may already be considered high-tech for them. I don’t believe we should discontinue the cheque. Even if only one person is using it, in a business point of view, they are still the customer, and refusing to accept it would only displease or drive them away. However, a lot can and will change in 8 years, who knows, maybe in few years something innovative will change how we pay and receive money.
