Jenny Willott, Liberal Democrat spokeswoman for the third sector, has called on the Payments Council to scrap plans to abolish cheques because of the problems this would cause for charities.
Willott said the abolition of cheques, which is scheduled to happen by the end of 2018, would result in more administration for grant-making charities and more bank charges for smaller charities.
"Large dollops of cash that should be going to fund front-line charity services will be swallowed up in processing costs and bank charges," she said.
"This decision by the banks seems to have been made in their own narrow self-interest and without any regard to the impact it could have on the third sector."
Willott is one of 113 MPs to have signed an early day motion that "urges the banks to reconsider their proposals to abolish the cheque".
A spokeswoman for the Payments Council said: "It is widely accepted that cheque use is in long-term decline. However, there are some groups, such as charities, that currently use cheques extensively.
"Meeting up with charities and ensuring payment options meet their needs – both for donations into them and for the continued ease of functioning of the charity – will be key to the work going forward."