By Rachel Fletcher
The Payments Council has set a two-year timescale to close the Cheque Guarantee Card Scheme.
According to the organisation, the decision was made after researching the matter and consulting with stakeholders.
The council said that use of guaranteed cheques is fast falling, having declined by 70 per cent in five years and one-third in the past year.
Of 1,400 million cheque transactions made last year, less than seven per cent had a cheque guarantee card.
Chairman of the Payments Council Brian Pomeroy said the body had taken care to get the opinions of those involved in the scheme.
"Having objectively considered the views and interests of all parties, we believe the aim should be to close the scheme in an orderly manner," he stated.
In March, the Office of Fair Trading (OFT) said that the payments sector had enjoyed a "much more effective strategic direction" since the Payments Council's inception.
Mr Pomeroy said that the council agreed with the OFT's call that it give a self-assessment on a biannual basis.
