Why You Should Still Use Paper Checks

There is a tendency to view check writing as a thing of the past when there are digital payment options like Venmo, Zelle, and Apple Pay, but there are still some circumstances when it’s more beneficial to use paper checks. This is when it might be more secure or beneficial to make use of a personal or a paper check, the best way to use checks with care, and when you can skip them.

You might consider writing a check when in one of the following situations:

  • Shopping at a small business
  • Cash gifts
  • Tracing important payments
  • Protecting your identity

Shopping at a Small Business

Due to their size and processing charges, some small firms aren’t able to accept credit cards. A recent study revealed that only 27% of small businesses would prefer digital transactions (think credit cards or ApplePay) in preference to non-digital payments (cash, checks, and money orders). If you employ someone to cut your lawn or buy goods from a local retailer or flea market vendor or even have a dog walker, you might want to keep a checkbook on hand to pay them.

Gifting Money

If you’re running out of time and you’re planning an event like a birthday celebration, wedding, or other celebration of the family It’s probably best to stash money into a debit card. But when giving money as gifts, checks might be more appropriate as opposed to cash. While both checks and cash can easily be lost when you are rushing to open presents, one is addressed specifically to the person receiving it and the other is not.

This may help the recipient keep track of the person who gave them the cash. If they put the cash to the side and revisit it later, they won’t recall who gave the money to them. A special horses checks can inspire the recipient to keep the funds instead of spending them instantly. They’ll have to visit an institution or use a mobile app to deposit or withdraw it, which can take some extra effort.

Tracing Important Payments

If you are making a major payment, such as the down payment for a new property, college tuition fee or a deposit for a wedding venue, or the payment to a government agency such as the IRS You may need to make a check-in paper. This will help you ensure that your payment was received because you’ll see whether the other person deposits or cashes the check on the next bank statement or through your bank’s online portal.

Some banks will even show you a photo of the cashed check to confirm that the transaction is authentic. This can also help to prevent the payment of extra fees due to late transactions since they are all date-stamped. Additionally, if your check gets stolen or lost, you can request to stop your payment by calling the customer service telephone number or online on your bank’s website. If you wish to stop payment on your check, it is necessary to choose the “stop payment” option via your bank’s online portal. However, you must do so before the check has been cashed.

You might also have to enter your account number, the check number along with the amount of your check. Take note that it is likely that you’ll have to pay a fee to stop a check. These fees vary from bank to bank, but you could end up paying about thirty dollars for stopping the cheque, and some banks could have to charge more.

If You’ve Been the Victim of Fraud

Are your confidential financial data been stolen or compromised? You’re not alone. One study found that in the year 2018, 14.4 million people in the U.S. were victims of identity fraud which amounted to a total of $3.4 billion in losses. The worst part is that the same study found that even more victims were required to pay from their own pocket to pay for the costs of that fraud.

Based on these figures, it makes sense you’d need to ensure your personal information is safe in case you’ve had to deal with something similar. Many people go back to cash or paper checks in lieu of swiping a credit or debit card at local stores. Some may not want to input their payment details on retail websites online or make use of online and electronic payment services. While writing a paper-based check isn’t a foolproof method making sure your information is secure in a secure location and using your credit card with caution could assist in reducing the likelihood of identity theft and fraud and other financial criminal acts.