Credit card companies send out millions of credit card cheques. In 2008, 280 million says the BBC, although the vast majority are not requested and remain unused. However, for those consumers who do use them the average APR on a cheque is around 27% compared to around 17% for using a credit card. In addition to the high interest rates, cheque transactions also carry a fee, typically around 3%. For most people this simply means an increase in credit card debt.

Section 75 Protection

Worryingly, they also leave consumers who use them without section 75 protection which enables them to claim refunds on faulty or undelivered items costing between £100 and £30,000.