Cheque Guarantee Card Scheme
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The Cheque Guarantee Card Scheme in the Republic of Ireland (“the Scheme”) closed on December 31st 2011. Cheques written and accepted since that date are not be covered by the Scheme Guarantee. This page contains information relating to the closure of the Scheme and addresses key questions you may have.
Absolutely – the closure of the Scheme only applies to guaranteed cheques. Cheques can be written and accepted as usual, the only difference will be that the guarantee offered under the Scheme no longer applies.
What can I use instead of a guaranteed cheque?
In most cases you will be able to use your debit card as the vast majority of retailers and other businesses accept debit card transactions.
Where a business does not accept card payments, you can make an electronic payment from your bank account to the bank account of that business. Since January 1st 2012 all such payments are processed and paid into the beneficiary’s account by the following business day at the latest.
Of course you can still pay by cheque if you wish, the only difference is that because the Scheme is closed your cheque is no longer guaranteed under the Scheme.
What action do I need to take?
None unless you are a retailer that accepted cheques with a Cheque Guarantee card. If so, you should ensure that you and your staff are aware that the Scheme closed on December 31st 2011 and you should make any necessary arrangements.
If a retailer accepted a cheque with a Guarantee card before the end of the Scheme, but does not lodge that cheque until after December 31st 2011, will this cheque be guaranteed even though the Scheme is closed?
Yes - once a cheque has been written on or before December 31st 2011, and where the Scheme Rules of Use have been adhered to, the cheque will be guaranteed under the Scheme in the normal way, i.e. for up to six months after the date of issue of the cheque.
What do I do if the expiry date on my card is beyond December 31st 2011?
You do not need to do anything. In most cases your card is also likely to have ATM and/or debit card functions which will continue to function as normal. It is only the Cheque Guarantee function that has ceased to be valid.
Why was the Scheme closed?
Cheque usage in Ireland has been declining rapidly as more and more people choose to make their payments electronically. Only a tiny percentage of cheques were written in conjunction with a valid cheque guarantee card. Many retailers no longer accept cheques as payment for goods and services and only a small percentage of them were relying on the Guarantee itself. It was decided by the Irish Paper Clearing Company Limited (as administrator of the Scheme) that there should be an orderly wind down of the Scheme.Some facts
- Cheque usage in Ireland has been declining since 2005, and by almost 30% in the last three years.
- Only about 1.5% of cheques were guaranteed in conjunction with a valid Cheque Guarantee Card
- There are 7.7 million payment accounts
- Many high street retailers no longer accept cheques at all
- The average value of a cheque written in Ireland is over €5,000. The Cheque Guarantee Card Scheme only covered cheques written up to €130
Frequently Asked Questions
Will I be able to continue to use cheques after December 31st 2011?Absolutely – the closure of the Scheme only applies to guaranteed cheques. Cheques can be written and accepted as usual, the only difference will be that the guarantee offered under the Scheme no longer applies.
What can I use instead of a guaranteed cheque?
In most cases you will be able to use your debit card as the vast majority of retailers and other businesses accept debit card transactions.
Where a business does not accept card payments, you can make an electronic payment from your bank account to the bank account of that business. Since January 1st 2012 all such payments are processed and paid into the beneficiary’s account by the following business day at the latest.
Of course you can still pay by cheque if you wish, the only difference is that because the Scheme is closed your cheque is no longer guaranteed under the Scheme.
What action do I need to take?
None unless you are a retailer that accepted cheques with a Cheque Guarantee card. If so, you should ensure that you and your staff are aware that the Scheme closed on December 31st 2011 and you should make any necessary arrangements.
If a retailer accepted a cheque with a Guarantee card before the end of the Scheme, but does not lodge that cheque until after December 31st 2011, will this cheque be guaranteed even though the Scheme is closed?
Yes - once a cheque has been written on or before December 31st 2011, and where the Scheme Rules of Use have been adhered to, the cheque will be guaranteed under the Scheme in the normal way, i.e. for up to six months after the date of issue of the cheque.
What do I do if the expiry date on my card is beyond December 31st 2011?
You do not need to do anything. In most cases your card is also likely to have ATM and/or debit card functions which will continue to function as normal. It is only the Cheque Guarantee function that has ceased to be valid.
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