EASTBOURNE MP Stephen Lloyd is celebrating after the decision to scrap cheques by 2018 was reversed.
The UK Payments Council announced it will continue their use for as long as customers need them.
Mr Lloyd had previously petitioned for cheques to be retained.
“For small businesses cheques are a vital form of payment, and many were very concerned that their removal would drive up costs,” he said.
“For customers, especially older people, cheques were reliable, safe and straightforward.
“Last year alone there were over one billion cheque transactions, which shows just how widely used they are as a form of payment.
“The announcement means that the many local residents who contacted me in support of my campaign to keep the humble cheque as a recognised form of payment are vindicated.
“Common sense for a change has won the day, and the banks have lost; a small victory perhaps, but one that is long overdue.
“After campaigning alongside business trade associations, charities and consumer groups in Parliament for months now, I know they will also welcome this news with open arms.
“I am absolutely delighted with the result.”