Store bans cheques in fraud worry

The company says it has made the move due to an increasing problem with fraud.

Described as 'an experiment', the ban may be extended across the UK following a review at the end of October.

Several retailers have recently restricted the use of cheques over the past year, including PC World and Currys in February 2006.

In addition, Boots is currently running a similar trial to gauge customer reaction.

WH Smith's policy came to light after Working Lunch viewer Jane Duff had a cheque refused in the store's Macclesfield branch.

DEATH OF THE CHEQUE

• Cheques written per person
• 1991 - 4.3 a month
• 2005 - 1.8 a month
• Source: APACS

The company, the UK's biggest seller of books and stationary, has now clarified that the branch should have accepted the cheque, but the policy may change in the near future.

Shops are under no legal obligation to accept cheques.

"Retailers are only obliged to accept legal tender," Jemma Smith, Association of Payment Clearing Services spokeswoman, said.

"They can choose to turn away cards or cheques."