Banks across Britain are now looking to abolish payments via cheques all together in favor of those via electronic transfer or cards. To vote on the proposal, the Payments Council, a panel which has been drawn from major banks from across the country, will meet in December 16. If passed, the proposal could put an end to the 300-year-old mode of payment, and cheques would disappear starting 2018.

The move is aimed at saving the banks millions of pounds every year. The processing of an electronic payment cost a fourth of the ?1 which has to be invested in processing cheques. But banks have insisted that this is not the only reason. The past two decades have seen a substantial number of payees shift from cheques to plastic. The number of people paying via cheques has drop by nearly two-thirds, if reports are to be believed.

The banks' decision is strongly backed by the fact that many major retailers like Marks & Spencer and Sainsbury’s have already stopped accepting cheques in favor of cash payments or debit and credit cards. But many small retailers and consumers groups have opposed the proposal. While small traders are concerned about the costs involved in installing a card-processing machine, customer groups have stressed that cheques are important for the elderly, vulnerable and disabled people.

Sandra Quinn, from the Payments Council, has tried to put these concerns at rest by asserting that cheque payments would not be abolished before an equally suitable alternative is found and put in place.