Cheque Guarantee Card Scheme Explained

The Cheque Guarantee Card Scheme was introduced in 1980 by the UK's major clearing banks to reduce the risk of cheque fraud.

The scheme was a response to the growing problem of cheque kiting and other forms of cheque fraud.

It allows merchants to verify the existence of funds in a customer's account before accepting a cheque, providing a level of protection against bounced cheques.

This protection is a major advantage for businesses, especially small ones, that rely heavily on cheques as a form of payment.

By reducing the risk of cheque fraud, the scheme helps to maintain trust in the cheque system.

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The cheque guarantee card scheme is a plastic card that can be used to guarantee a cheque up to the limit marked on the card, which is usually £50 or £100.

This card is usually a debit card and is not possible to place a "stop" on a guaranteed cheque once it's handed over in person.

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The card can only guarantee a cheque if certain conditions are met, such as the cheque being handed over in person and not posted.

The first cheque card was introduced in 1965, marking the beginning of this scheme.

The industry-wide scheme was set up in 1969, long before many people had a plastic card and when cheques were the main non-cash method of payment.

A cheque guarantee card is a financial instrument that guarantees the payment of a cheque up to a specified limit.

It's a card issued by a bank or financial institution that provides assurance to the seller that the cheque will be honored, reducing the risk of bounced cheques. This is especially useful in retail transactions where customers can pay for goods or services using a cheque.

Many shops require a cheque guarantee card for large purchases to prevent bounced checks, so it's essential to have one if you plan to make big-ticket purchases.

The bank will set a limit on the maximum amount of an individual cheque that can be guaranteed, and the guarantee only applies to cheques drawn on an account provided by the bank that issued the card.

Retailers can verify the signature on the cheque against the signature on the card to ensure the cheque is genuine.

Here are some benefits of using a cheque guarantee card:

Having a cheque guarantee card can provide peace of mind when making purchases with a cheque, knowing that the funds will be available to honor the cheque.

The cheque guarantee card has finally said goodbye. It was a staple of personal finances for many years, but its demise was inevitable due to lack of use.

The first guaranteed cheque was written in 1965, marking the beginning of a new era in payments.

Before debit cards took over, paying for goods often involved whipping out the cheque book and flashing the guarantee card.

A cashier would then jot down the card number, expiry date, and guarantee limit on the back of the cheque.

The cheque and its guarantee card were a classic combination, but they're now relics of the past.

The Bard, a symbol of the cheque guarantee card since 1990, has been replaced by holograms or logos on debit cards.

Cheque guarantee cards were still used by some for paying tradesmen, such as plumbers and carpenters.

The cheque itself is also facing the guillotine in 2018, and its loss of its partner will likely hasten its demise.