Credit cards replacing cheques, figures show

The use of cheques is on the decline as Brits increase their use of debit, credit cards and other payment methods, it has been claimed.

Consumers and trades people are increasingly using alternatives to cheques in their everyday transactions, according to HSBC, such as on their high interest credit card.

Recent figures from the UK Payments Association indicate that plastic card spending rose by three per cent in the second quarter of 2009, compared to last year.

Spending on cards reached £95.5 billion, while the number of purchases made also increased by 6.9 per cent.

Spokesperson for HSBC Tim Pie explained that there has also been a decline in the number of retailers accepting guaranteed cheques.

He said: "Although they are a declining payment mechanism they are still in use and if the personal cheque is ever to be completely phased out, the industry needs to assist people who want to use cheques to learn how to use other payment mechanisms."