Cheque Guarantee Card Scheme
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The Cheque Guarantee Card Scheme in the Republic of Ireland (“the Scheme”) is being closed on December 31st 2011. Cheques written and accepted after that date will 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.
In such circumstances it has been decided by the Irish Paper Clearing Company Limited (as administrator of the Scheme) that there should be an orderly wind down of the Scheme, thereby facilitating clarity and certainty for both writers and receivers of cheques and to avoid ongoing confusion.
The date to achieve the orderly wind down of the Scheme has now been set as December 31st 2011.
For a cheque to be guaranteed it must be accepted with a valid card carrying the Cheque Guarantee Card Scheme logo or hologram, and subject to compliance with the Rules for Use of the Guarantee Scheme.
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 will no longer apply.
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. Debit cards in Ireland outnumber Cheque Guarantee cards by more than 2 to 1.
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. By January 1st 2012 all such payments will be 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 once the Scheme has closed your cheque will no longer be guaranteed under the Scheme.
What action do I need to take?
None unless you are a retailer that accepts cheques with a Cheque Guarantee card. If so, you should ensure that you and your staff are aware that the Scheme will close on December 31st 2011 and you should make any necessary arrangements
If a retailer accepts 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 has 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 written on 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 will cease to be valid after December 31st 2011.
Why is the Scheme being closed?
Cheque usage in Ireland has been declining rapidly as more and more people choose to make their payments electronically; and only a tiny percentage of cheques are written in conjunction with a valid cheque guarantee card. Additionally, many retailers no longer accept cheques as payment for goods and services and only a small percentage of them rely on the Guarantee itself. Further, two of the six member banks of the Scheme gave notice in 2010 of their withdrawal from the Scheme.In such circumstances it has been decided by the Irish Paper Clearing Company Limited (as administrator of the Scheme) that there should be an orderly wind down of the Scheme, thereby facilitating clarity and certainty for both writers and receivers of cheques and to avoid ongoing confusion.
The date to achieve the orderly wind down of the Scheme has now been set as December 31st 2011.
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 are guaranteed in conjunction with a valid Cheque Guarantee Card
- There are 1.4 million Cheque Guarantee Cards in Ireland
- There are 7.7 million payment accounts
- 55% of debit cards do not have the Cheque Guarantee function
- 71% of ATM cards do not have the Cheque Guarantee function
- Since the closure of the UK cheque guarantee scheme on June 30th 2011, Ireland is the only country in the world with such a scheme
- 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 covers cheques up to €130
Frequently Asked Questions
What is a guaranteed cheque?For a cheque to be guaranteed it must be accepted with a valid card carrying the Cheque Guarantee Card Scheme logo or hologram, and subject to compliance with the Rules for Use of the Guarantee Scheme.
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 will no longer apply.
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. Debit cards in Ireland outnumber Cheque Guarantee cards by more than 2 to 1.
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. By January 1st 2012 all such payments will be 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 once the Scheme has closed your cheque will no longer be guaranteed under the Scheme.
What action do I need to take?
None unless you are a retailer that accepts cheques with a Cheque Guarantee card. If so, you should ensure that you and your staff are aware that the Scheme will close on December 31st 2011 and you should make any necessary arrangements
If a retailer accepts 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 has 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 written on 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 will cease to be valid after December 31st 2011.
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T: +353 1 6636740 F: +353 1 2843409 E: info@ipso.ie
Company Registration Number: 267239
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