Credit Card News – the End of Cheque Guarantee Cards
Posted on July 9th, 2011
You are probably aware by now that the use of cheques in the United Kingdom is currently being phased out. One issue that is not so well-known, however, is the ending of cheque guarantee cards. The ending of these cards tends to affect banks and building societies rather than credit card companies, but as cheques become less used, cards such as 0% interest credit cards could become useful alternatives.
So, why are cheque guarantee cards being phased out? The main reason is that cheques are not used as much as they once were and, despite a cheque guarantee scheme being in place since the 1960s, many retailers will accept cheques without a guarantee anyway. Also, quite a few other retailers have stopped accepting cheques altogether and so it was agreed that cheque guarantee cards would be phased out prior to cheques themselves being phased out by 2018.
This means that those consumers who previously used cheques will need to find alternative methods of payment. In the vast majority of cases, cash or debit cards can be used to make payments. Credit cards can also be used to make payments to retailers and, as they are typically more secure than debit cards due to the guarantees made by credit card companies, they are an attractive alternative for many people.
Another reason for using a credit card as an alternative to a cheque with cheque guarantee card is that it is possible to find good deals on credit cards. For instance, there are 0% interest credit cards that allow consumers to make purchases without having to pay any interest for a set period of time, which is useful if they are looking to spread their payments. Credit cards are also increasingly secure and so can make a good payment alternative as cheques continue to become less common.
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