The Better Payment Practice Group gives tips on issuing and receiving cheques
Following its recent web poll which found that over half UK business have suffered a bounced cheque in the last year, the Better Payment Practice Group (BPPG) has launched a new section on its website providing advice for companies on issuing and receiving cheques.

The guidance, which can be found by clicking here, offers an overview of the cheque clearing system and advice on issuing and receiving cheques as well as information on avoiding cheque fraud.

Stewart Dickey, member of the BPPG representing the British Bankers Association, commented: “Although cheque usage has declined in recent years as businesses have made increasing use of electronic payments and cards, it still remains a very important payment method, particularly for small businesses. Only about 0.5% of the 6-7 million cheques cleared each day return unpaid*, but it is vital that companies protect their cash flow by credit checking customers before accepting cheques or encouraging other methods of payment such as electronic bank transfers. When dealing with the public, cheques should be guaranteed with a bank card. These actions will help avoid the problem of bounced cheques.”

* Source: APACs

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