by business editor Trevor Sturgess

Saga, the Folkestone-based travel and financial services provider for the over-50s, is backing the return of cheque guarantee cards.

The Payments Council has revealed that it is reviewing the decision to scrap cheque cards.

It is the second time the discredited organisation has had to admit it was wrong.

Earlier this year, it abandoned plans to axe the cheque by 2018 after facing huge opposition from widespread sections of the community, especially older people and charities.

Many businesses refuse to accept cheques and even more joined them after customers were barred from providing a guarantee card from June this year.

MPs were incensed and demanded reinstatement. It appears that the Payments Council has bowed to pressure.

Dr Ros Altmann, Saga's director-general, had welcomed the decision to save the cheque and was equally enthusiastic about the possible reintroduction of the guarantee card.

She said: "Older people do like to use cheques rather than credit or debit cards – many over-50s have lived with cheques for virtually their entire lives, and don't quite trust electronic methods of moving of money, but, equally, don't like carrying cash around.

"Small businesses or tradesmen also often rely on cheques for payment and would sometimes struggle without the security of a guarantee card."

She added: "Younger generations are far more comfortable with change and innovation and view electronic movement of money as convenient. However, older generations haven't quite accepted and often simply don't understand or have the means to move money in a digital world."

Dr Altmann warned that older people might choose not to spend at all rather than "use processes they don't like or understand".

The latest moves would, in a small way, have positive effects on the economy because they would encourage them to spend, she explained.