State stops accepting business cheques today
Public bodies will stop sending and receiving cheques to and from businesses in Ireland today.
The initiative is part of the Governments National Payments Plan. Ireland is one of a few EU member states that still uses cheques as regular payment method.
Last year, the National Payments Plan, which was launched by the Finance Minister, recommended the initiation of an "e-day" at which time the public sector will no longer write or accept cheques to or from business users.
It is part of an effort to reduce the use of physical payment methods and to encourage greater use of electronic methods instead.
It affects businesses and not consumers. The NPP projects savings of up to €1bn per year, which an be made through a shift to electronic payments.
"The feedback so far suggests the e-Day transition is going well, but SMEs are still the biggest users of cheques in Ireland," said Ronnie O'Toole, Programme Manager at the NPP.
"This decision that Government agencies will no longer make or receive cheque payments from 19 September will provide the impetus for Irish business to switch from a ‘cheque in the post’ mentality to a culture of ‘pay-on-time, pay-on-line’."
A 2014 survey from the Central Bank showed that the number of cheques being used is falling. This year, it is estimated that 61 million cheques will be issued in Ireland, compared to 69 million in 2013 and 132 million in 2005.
Cheques are stored in warehouses for six years after they clear, before they are destroyed. They also generate a large carbon footprint from their printing, posting, and transport.
