The Cheque Guarantee Card Scheme that provides the facility to guarantee a cheque using a cheque guarantee card is being withdrawn on 31st December 2011. Cheques can continue to be used after that date, just not with the cheque guarantee card. Below you will find answers to some of the questions you might have.
How do I know if I have a Cheque Guarantee card?
If you have a cheque guarantee card your Laser/Maestro card will have a hologram and corresponding logo showing a limit of the guarantee, on the back of your card. The picture below gives an illustration of the rear of a card with the facility and what the rear of the card will look like going forward;
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Why has the decision been made to withdraw the cheque guarantee facility?
IPSO (The Irish Payment Organisation Ltd) has agreed with all banks that based on the small percentage of cheques being guaranteed and the future of payments to close the scheme.
When will I get a new card without the guarantee?
Due to the impending closure of the scheme on the 31st December, from the 13th September 2011 National Irish Bank will no longer issue new or replacement cards with a cheque guarantee facility. This is being done from this date so that our customers will not have the inconvenience and additional cost of a new card within 6 months of their normal card renewal date, and as so few of our customer’s use the facility.
Can I still use my card to guarantee cheques?
While your existing card may still display the cheque guarantee symbol, any cheques written after the 31st December 2011, will no longer be considered guaranteed by a business or payee. Cheques will still be honoured subject to funds being available in your account, but you may find businesses or payees are less willing to accept cheques.
What can forms or payment can I use instead of a guaranteed cheque?
The majority of businesses and shops will accept payment using your Laser/Maestro debit card either in person with your PIN or over the phone or internet. Alternatively you can easily make a secure electronic payment by calling us or using your eBanking, or you can use cash.
I regularly accept guaranteed cheques – what does this mean for me?
You will need to consider alternative secure and guaranteed payments such as;
- An electronic transfer direct into your bank account. Your creditor can do this by referring to their bank or by using their internet banking
- Standing orders direct into your bank account
- If you are a business you could consider becoming a Direct Debit originator, please contact the bank if you would like to see if this would be suitable for a business of your size
- Point of sale debit and credit card chip and pin terminals
- Cash. You should always consider the security risks attached to payments in cash
- Non guaranteed cheques. Please consider the potential additional risks you will be taking if the person who is paying you has insufficient funds in their account at the time you present it for payment
Does this mean the end of the cheque is more likely?
Cheque usage in Ireland has been in decline for a number of years, and this decline is set to continue. Relatively few retailers still accept cheques, and the removal of the cheque guarantee scheme could result in even fewer accepting them in the future.