The Use of Cheques in the European Union: A Cross-Country Analysis

Abstract

Some European Union (EU) countries have implemented policies to discourage the use of cheques due to its considerable social costs and risks. This paper provides a crosscountry analysis for the period 2000-2012 of the determinants of cheque usage, measured both as per capita number and share of payments. Special attention is given to the effects of the application of fees in a framework where unfunded cheques are considered as an autonomous type of crime in some EU countries. Our results suggest that the existence of fees influences negatively cheque usage, even when there are legal elements that increase its security.

The Impact of Electronic Clearing on Currency in Circulation in Mozambique

“…However, specific observation regarding the use of cheques, points out that, while some European Union countries have implemented policies to discourage its use [19], the decreasing trend in the use of cheques cannot be generalized, mainly in less advanced economies. On average, the number of cheques written in the top 10 countries, that use them the most, dropped by 6.00% per year, between 2007 and 2017, while in certain places, this trend is reversed, and cheques usage has held steady, or even increased, over the same period.…”

What Factors Keep Cash Alive in the European Union?

“…The distinction between EU advanced/CEE countries is not only a statistical term, but also a political one and is convenient to put into perspective two groups of countries with different habits. 3 Macroeconomic perspective was also applied in some studies focusing on determinants of non-cash payment instruments (see, for example, Guariglia and Loke (2004), Goczek and Witkowski (2016) and Silva et al (2017)).…”

“… 3 Macroeconomic perspective was also applied in some studies focusing on determinants of non-cash payment instruments (see, for example, Guariglia and Loke ( 2004 ), Goczek and Witkowski ( 2016 ) and Silva et al. ( 2017 )). …”