You may think of traditional checks as a thing of the past now that there are many payment options online like Venmo, Zelle, and Apple Pay, but there are still some instances where it’s recommended to use them. In these instances, it’s more secure or beneficial to use a personal or paper check, as well as how to use checks with care, and when it’s appropriate to forgo them.
Shopping at a Small Business
Because of their size and credit card processing fees, a few small businesses don’t accept credit cards. One study showed that only 27% of small businesses prefer electronic payments (think of credit cards or ApplePay) in preference to non-digital payments (cash or checks, as well as money orders). So if you hire someone to mow your lawn, purchase products from a local store or flea-market vendor, and even have a dog walker, you may want to keep a checkbook available to pay the bill.
Gifting Money
If you’re short on time and are heading to an event like a birthday celebration, wedding, or another important family gathering It’s probably best to stash money into a card. However, if you’re giving money as gifts, personalized photo checks might be a better option than cash. Both cash and checks can easily be lost in the excitement of unwrapping gifts, one of them is specific to the person and the other does not. This could help the recipient remember who gave them the cash. If they put the cash aside and then return it later, they could not be able to recall who gifted it to them.
Tracing Important Payments
If you are making a major installment for something like the down payment for a new property, tuition fee for a college or a deposit for the location for a wedding, or the payment of a government organization like the IRS You may need to use a paper check. This will help you ensure that your payment was accepted because you’ll be able to see the date that the other party deposits or cashes the check in the next bank statement or through your bank’s online portal. Some banks will even give you a photo of the check that was cashed so you can ensure it’s legitimate.
This could even prevent you from having to pay late fees since the transactions will all be on a date.
Additionally, if your check is taken or lost from your account, you are able to make a request to cancel your check by calling the bank’s customer care phone line, or online via the bank’s website.
If You’ve Been the Victim of Fraud
Has your personal financial information been compromised or stolen? It’s not a problem for everyone. A study has revealed that in 2018, 14.4 million individuals in the U.S. were victims of identity fraud which amounted to a total of around $3.4 billion in losses. And, even more troubling, the same study found that a greater number of victims had to pay out of their pockets to pay the cost of that fraud.
With these figures so it’s logical to like to keep your personal information safe if you’ve dealt with something similar. Most people opt to continue using cash checks or checks made of paper in lieu of swiping a debit or credit card at local shops. They might also choose not to provide their payment information online at retail websites or opt for online or digital payment options.
While writing a paper check isn’t a guaranteed method making sure your information is secure online and not using your credit card less may assist in reducing the likelihood of identity theft, fraud, and other financial crimes.