Reasons Why You Should Still Use Paper Checks

You may think of paper checks as a thing of the past given that there are payment systems that are digital such as Venmo, Zelle, and Apple Pay, but there are still some instances where it’s better to utilize them. Here’s when it may be better or safer to make use of a personal or a paper check, as well as how to use checks safely, and also when it’s acceptable to avoid them.

You may wish to write a check when in one of the following scenarios:

  • Shop at a small shop
  • Gifting money
  • Tracing important payments Your identity is at risk.

Due to their size and credit card processing costs, some smaller firms aren’t able to accept credit cards. In fact, one study revealed that only 27% of small businesses choose digital payments (think ApplePay or credit card) ApplePay) over traditional payments (cash or checks, as well as money orders). If you’re hiring someone to mow your lawn, buy items from a local grocery store and flea market seller, or even employ a dog walker, you might want to keep a checkbook at the ready to pay them.

Gifting Money

If you’re running out of time and you’re planning a birthday celebration, wedding, or other family celebration, that probably means tucking money into a gift card. However, if you’re giving money as an offer, checks could be a better choice over cash. While both cash and checks are easily lost in the excitement of unwrapping presents, one is addressed specifically to the individual and the other isn’t.

This may help the recipient remember who gave them the cash. If they set cash to the side and revisit it in the future, they may not remember who gifted it to them. Gifting money via check may inspire the recipient to save the funds rather than spend them right away. They’ll have to visit banks or use an app on their mobile to cash or deposit it, which might take an extra step.

Tracing Important Payments

When making a large payment such as the down payment of an apartment, a college tuition amount or a deposit to the wedding location, or even the payment to a government agency like the IRS You may need to use a paper check. This can make sure that your payment is received since you’ll be able to see how the other party deposit or cashes the check on your bank’s next statement or via your bank’s online portal. Some banks may even provide you with a photo of the check that was cashed to confirm that the transaction is right.

This may even help prevent you from owing any penalties for late payment since the transactions will be all dated. If, for example, your check is stolen or lost You may request to be able to cancel the transaction through the bank’s customer service line or online using the website of your bank. For a stop payment to be placed on a check, you’ll need to click”stop payment” in the “stop payment” option via your bank’s online portal. However, you must do so before the check is cashed.

It is also possible to enter your account number and check number along with the amount of your check. Make sure you’ll probably have to pay a cost to stop the check. The costs vary from Bank to Bank, but it could cost around $33 to stop the cash and some banks will charge even more.

If You’ve Been the Victim of Fraud

Have the financial details that are sensitive to you been compromised or stolen? Don’t worry, you’re not the only one. One study showed 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 of losses. Even worse, that same study found that a greater number of victims were forced to pay out of their pockets to pay for the costs of this fraud. In light of these statistics, it makes sense you’d like to keep your personal information secure if you’ve been through something similar.

Many customers return to using cash checks or personalized photo checks instead of using the debit or credit cards at local retailers. Some may not want to provide their payment information online at retail websites or opt for online or digital payment services. While writing checks on paper isn’t a foolproof method protecting your confidential information offline and swiping your credit card more often could assist in reducing the likelihood in which identity theft is committed, as well as fraud and other financial criminals.