Cheque payments abroad not advised

Frequent travellers will be disappointed to learn it will not be feasible to make cheque payments abroad next year, even with the introduction of the new euro cheque book.

For all the talk of progress towards monetary union, there are no plans to create a Europe-wide cheque clearing system, according to Mr Felix O'Regan of the Irish Bankers' Federation.

"We can't see any likelihood of that because paper as a basis for making payments is not the way of the future. Paper is simply not an effective way of doing business for banks and personal customers," he said.

The new euro cheque books, which should be received by current account customers before the changeover, are recommended for payments within the State only. It could take a long time to get value for a euro cheque in another jurisdiction. There are also likely to be high transaction fees for the sender or the recipient, or possibly both.

"It is not at all advisable to write cheques and send them to Paris, Milan or Frankfurt. It's not that it's impossible but we strongly advise against it. There are other, more cost-effective ways to pay people in other countries."

Cheques should be written in euro from January 1st and remaining Irish pound cheques lodged before February 9th, although they are valid for six months. Unused Irish pound cheques should be returned to financial institutions for a stamp duty refund.

Financial institutions will change so-called "household amounts" of Irish pound notes and coins into euro free of charge. Amounts larger than £500 (€635) will have to be split between institutions to avoid charges.

Elderly people with a lot of "mattress money" should not be too concerned, Mr O'Regan said. They should develop a "banking relationship" as soon as possible, particularly those living in isolated areas. The Central Bank in Dublin will change old Irish currency "indefinitely".

Mr O'Regan's advice for anyone who thinks they will be confused during the dual currency period is to use Laser and credit cards, "until you become more relaxed and comfortable with the whole thing". ATMs, credit cards and Laser cards will operate as normal and pin numbers will remain the same in the new year.

Readers with queries can e-mail euro@irish-times.ie (please do not send attachments) or write to Euro Queries, Irish Times, 10-16 D'Olier Street, Dublin 2. Consumers with queries about euro pricing can contact The Office of the Director of Consumer Affairs at Lo-call 1890- 220229. Euro kits for retailers are available from Forfas at 1890-208308.