Removal of cheque guarantee functionality
The Payments Council(1) has agreed to an industry-wide withdrawal of the Cheque Guarantee Scheme from 30 June 2011. This was agreed due to a notable decline in guaranteed cheque usage by UK consumers.
To facilitate this, Nationwide removed the cheque guarantee functionality from new and replacement FlexAccount Visa debit cards issued after 22 March 2010.
After 30 June 2011 Nationwide cards will not have any cheque guarantee functionality, even if they still show the cheque guarantee hologram on the reverse.
Questions & Answers
Q1. Why have Nationwide made changes ahead of 30 June 2011?
Nationwide, along with some other financial providers, implemented this change ahead of 30 June 2011. This is to reduce the number of cards in circulation with cheque guarantee functionality ahead of the deadline.
Q2. Can I still write cheques?
This does not mean the end of cheques. Even after 30 June 2011 you will still be able to write them and some businesses will continue to accept them, without the guarantee. In fact, in most situations when handing over a cheque, the guarantee is not an essential part of the payment, so you may well find that whoever you are trying to pay will still be happy to accept a cheque, even without the guarantee. If you are unsure whether cheques are accepted in a certain shop, please ask at the checkout.
Q3. What happens if my FlexAccount Visa debit card is not replaced between 22 March 2010 and 30 June 2011?
If your card is not replaced during this time, your card will still display the cheque guarantee hologram and you will be able to use it to guarantee cheques until the scheme ends on 30 June 2011. You will receive a new card without the cheque guarantee hologram the next time it is replaced.
Q4. How can I tell if my FlexAccount Visa debit card has cheque guarantee functionality or not?
If you are unsure as to whether your Visa debit card can guarantee cheques, you should look for the £100 cheque guarantee hologram on the reverse of your Visa debit card. Even if your card has this hologram, it will not have cheque guarantee functionality after 30 June 2011.
Q5. If I receive a replacement FlexAccount Visa debit card without the cheque guarantee hologram, will it still work as normal in all other respects?
Yes. You will still be able to use your card to purchase goods and services in shops, online and over the phone as well as withdraw cash at cash machines.
1) The Payments Council is the organisation that sets strategy for UK payments such as cheques. It was set up in March 2007 and was established to ensure that UK payment systems and services meet the needs of users, payment service providers and the wider economy.