Wednesday, September 03 15:28:00
The Government's E-Day, which was announced a year ago, will take effect on Friday, September 19.
From this day, Government Departments and offices, local authorities and State agencies will no longer use cheques in their dealings with businesses and will instead use electronic payment methods.
The move is being welcomed by business groups.
Patricia Callan, SFA Director, commented: "The elimination of cheques and move to best international payments practices could save Ireland E1 billion. Every cheque written costs E3.55 to society, which includes a 50cent stamp duty charge, bank charges, postal charges, the printing, administration, transportation, lodgement and clearing of the cheque. Cheques are a critical factor in Ireland's late payment culture - businesses in countries in which cheques remain widespread take on average 1 month longer to get paid."
"Whilst much progress has been made in cheque reduction with usage halving since 2005, still 61 million cheques are written each year. A recent Central Bank report shows that 80pc of all business cheques are issued by SMEs, while 78pc are received by SMEs. A move away from cheque usage to e-payment would benefit day-to-day cash flow which is a critical factor in small business success," Ms Callan added.
"We urge all small businesses to fully prepare for e-Day, by migrating to on-line payment methods and ensuring they are compliant with the new requirements. This first step by the Government, will hopefully be followed by the broader business community in their business to business dealings, to the benefit of all."
For more, visit www.businessworld.ie