The advance in technology has rendered the use of a cheque as a payment method archaic.
Cheques are an expensive form of payment and over time, have become most susceptible to fraudulent activity. To this end, there are far more effective means to transact that are not only safer but are far cheaper.
Kenneth Matlhole at FNB Business says that much of the usage of cheques is largely driven by business-to-business transactions that are steeped in traditional process.
“A large portion of cheque users are from specific industries that have cheque payments built into their business operations, many of which would benefit from moving away from Cheque payments in terms of efficiency, and risk,” explains Matlhole.
From an analysis of its customer base, FNB has identified sectors that make the most use of cheques, namely: schools, churches, scrap metal dealers, agriculture, the motor industry, fiduciary services and auctioneers.