There is a tendency to view traditional checks as a thing of the past as there are payment systems that are digital such as Venmo, Zelle, and Apple Pay, but there are still a few instances that it’s better to utilize them. There are times when it’s safer or preferable to make use of a personal or a paper check, as well as how to use checks safely, and when it’s acceptable to avoid them.
You may wish to write your check in one of the following situations:
- Shop at a small store
- Giving money as a gift
- Tracing important payments
- Protecting your identity
Shopping at a Small Business
Due to their size and processing costs, some small businesses aren’t able to accept credit cards. One study found that only 27% of small businesses prefer digital payments (think ApplePay or credit card) ApplePay) over non-digital payments (cash cheques, computer checks, and money orders). If you’re hiring someone to cut your lawn, buy items from a local retailer or flea-market vendor or even have a dog walker, you may be able to keep a checkbook at the ready to pay them.
Gifting Money
If you’re short on time and are planning a wedding, birthday party, or other celebration for the family it’s likely that you’ll need to put cash into a credit card. However, when you’re giving money away as the gift of a loved one, checks might be more appropriate than cash. While both cash and checks are easy to lose in the excitement of opening presents, one of them is addressed specifically to the person receiving it and the other isn’t.
This could help the recipient recall who gave them the money. If they store the money on the side and then return it in the future, they may not recall who gave it to them. Checks that are given as gifts can inspire the recipient to save the money rather than spend them all at once. You’ll need to go to any bank or a mobile app to deposit or withdraw it, which might take some effort.
Tracing Important Payments
If you are making a major payment, such as the down payment for a new house, a tuition payment for college or a deposit to a wedding venue, or even an installment to a federal agency like the IRS or the IRS, it’s best to make a check-in paper. This can help ensure your payment is received since you’ll be able to see when the other party deposits or cashes your check in the next statement from your bank or through your bank’s online portal.
Some banks may even provide you with the image of the cashed check to ensure that it’s accurate. This can even stop you from incurring any extra fees due to late transactions since they will be all dated. Additionally, if your check gets stolen or lost It is possible to stop your payment by calling the bank’s customer support line or online via your bank’s website. If you wish to stop payment on a check, you’ll need to pick the “stop payment” option via the online portal for your bank. You must do so before the check has been cashed. You might also have to enter the account number, the check’s number as well as the amount of your check. Remember that you’ll most likely have to pay a fee to stop a check. The cost varies from one banking institution to another, but you could be charged around $33 to stop the cash, and some banks might charge even more.
If You’ve Been the Victim of Fraud
Are your confidential financial data been compromised or stolen? It’s not a problem for everyone. One study showed that in the year 2018, 14.4 million people in the U.S. were victims of identity fraud in the amount of approximately $3.4 billion worth of loss. And, even more troubling, the same study revealed that more victims were required to pay out of their own pocket to pay for the costs of the fraud.
Given these numbers, It’s natural that you’d want to keep your information secure if you’ve already dealt with something similar. Many customers return to cash or paper checks in lieu of swiping their credit or debit cards at local shops. They can also refuse to enter their payment information on the internet at retailers’ websites or use online and digital payment services. While writing checks on paper isn’t a guaranteed method of protecting your confidential information offline and swiping your credit card with caution could aid in reducing the chances that you are a victim of fraud, identity theft, and other financial crime.
