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

Author

Listed:
  • Vânia G. Silva

    (Universidade de Évora
    Banco de Portugal–Departamento de Sistemas de Pagamentos)

  • Esmeralda A. Ramalho

    (Universidade de Évora)

  • Carlos R. Vieira

    (Universidade de Évora)

Abstract

The use of cheques has been declining in the European Union (EU), along increased integration in the payments field. This trend is not uniform across the EU, and some countries have implemented policies to discourage the use of cheques due to its considerable social costs and risks. This paper provides a cross-country 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.

Suggested Citation

  • Vânia G. Silva & Esmeralda A. Ramalho & Carlos R. Vieira, 2017. "The Use of Cheques in the European Union: A Cross-Country Analysis," Open Economies Review, Springer, vol. 28(3), pages 581-602, July.
    • Handle: RePEc:kap:openec:v:28:y:2017:i:3:d:10.1007_s11079-016-9412-1
    DOI: 10.1007/s11079-016-9412-1
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    1. Yulia Titova & Delia Cornea & Sébastien Lemeunier, 2021. "What Factors Keep Cash Alive in the European Union?," De Economist, Springer, vol. 169(3), pages 291-317, August.

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    More about this item

    Keywords

    European Union; Retail payments; Cheques; Panel data;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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