Why You Should Still Use Paper Checks

It’s easy to think of checks made of paper as being a thing of the past when there are electronic payment methods such as Venmo, Zelle, and Apple Pay, but there are still some instances in which it may be better to utilize them. These are the instances when it’s more secure or beneficial to choose a personal check, how to utilize checks with care, and when it’s okay to not use them.

It is possible to write a check in any of these situations:

  • Shopping at a small-scale business
  • Gifting money
  • Tracing important payments
  • Secure your identity

Shopping at a Small Business

Due to their size and credit card processing fees, some small firms aren’t able to accept credit cards. One study found that only 27% of small businesses prefer digital payment methods (think of credit cards or ApplePay) over non-digital payments (cash cheques, checks, and money orders).

Therefore, if you contract someone to cut your lawn, purchase products from a local grocery store as well as a flea market vendor, and even employ the occasional dog walker, you might need to keep a cashier’s check in your wallet to pay the bill.

Gifting Money

If you’re pressed for time and are planning a birthday celebration, wedding, or other family celebration this could mean putting money into a gift card. However, when you’re giving money away as a gift, checks may be more appropriate instead of cash. Both cash and checks are likely to be lost in the excitement of unwrapping presents, one of them are specifically addressed to the person and one is not.

This helps the recipient to remember who gifted them the cash. If they put the cash to the side and go back later, they won’t recall who gave it to them. The gift of money through beach checks could inspire the recipient to save the money rather than spend them immediately. They’ll have to visit a bank or use an app for mobile devices to deposit the money or cash it, which will require some extra effort.

Tracing Important Payments

In the event of a large-scale installment for something like a down payment on the purchase of a house, a college tuition payment or deposit to secure the wedding location, or even an installment to a federal institution like the IRS it is possible to use a paper check.

This can make sure that your payment was made because you’ll see the date that the other party deposits or cashes the check on your next bank statement, or through your bank’s online portal. Some banks will also show you an image of the cashed check to verify that it’s correct. This may even help prevent the payment of penalties for late payment since the transactions will be all in date. If your check is lost or stolen You may request to make the payment void by calling the customer service telephone line or online via your bank’s site.

To make a stop payment on an unpaid check, you’ll need to click “stop payments” or the “stop payment” option via your bank’s online portal. However, you must do so before the check has been cashed. It is also possible to enter your account number, the check number, and the amount of your check. Take note that you’ll likely need to pay a fee to stop the check. These charges vary from one Bank to Bank, but you may end up paying approximately 30 dollars to stop the checks, and some banks might cost more.

If You’ve Been the Victim of Fraud

Have the financial details that are sensitive to you been stolen or compromised? It’s not a problem for everyone. A study revealed that in 2018, 14.4 million people in the U.S. were victims of identity fraud which amounted to a total of $3.4 billion worth of loss. Even worse, that same study found that even more victims had to pay from their own pocket to pay for the costs of this fraud.

With these numbers is logical that you’d be keen to keep your data safe, especially if you’ve previously dealt with something similar. Most people opt to continue using cash or checks made of paper instead of using cards with credit or debit at local stores.

They might also choose not to provide their payment information online at retail websites or make use of online and electronic payment services. While writing checks on paper isn’t an absolute security measure keeping your private information off the internet and using your credit cards less can reduce the risk of identity theft and fraud, and other financial crimes.