Banks call for end to cheque culture

BANKS yesterday urged consumers and business to ditch cash and cheques, saying the cost of processing the transactions was €1.4 billion a year.

The Irish Payments Services Organisation (IPSO) wants to see greater usage of electronic forms of payment like the Laser and Visa debit card instead.

At the last Budget, Finance Minister Brian Cowen halved the annual stamp duty on debit cards and doubled the levy on cheques to encourage people to use their plastic.

Yesterday IPSO boss Pat McLoughlin said the banking industry should phase out cheques by 2016. “While there is an abundance of electronic payment options available to customers, (they) continue to be heavily reliant on cash and cheques,” he said. Cheques account for 75% of the value of all non-cash payments, and usage of the familiar paper document is double the EU average.

IPSO said 73% of the population owned a Laser debit card, which allows them to pay for goods and services by typing in a PIN access code at retailers and other outlets.

IPSO research suggests 69% of the public would use their debit cards if retailers removed minimum spending levels, as high as €12.50 in shops.

Retailers including Marks & Spencer, Argos and Boots no longer accept cheques, saying they cost too much to process and are not as quick as card-payment.

IPSO said a switch to electronic payment could also help businesses to reduce costs and become more competitive.