You might think of checking with paper checks as something in the past as there are digital payment methods such as Venmo, Zelle, and Apple Pay, but there are still some instances when it’s recommended to use them. There are times when it’s safer or preferable to choose a personal check, the best way to use checks in a safe manner, and when you can skip them.
You might want to make checks in any of the following situations:
- Shop 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. In fact, one study revealed that only 27% of small-scale businesses prefer electronic payments (think cash or ApplePay) over traditional payments (cash, checks, and money orders). If you’re hiring someone to cut your lawn, purchase goods from a local market (or flea markets vendor), or even hire a dog walker, then you might need to keep a cashier’s check at the ready to pay the bill.
Gifting Money
If you’re in a hurry and are heading to a birthday party, wedding, or special family event it’s likely that you’ll need to put money into a debit card. If you’re planning to give money as presents, checks may be a better option as opposed to cash. Although both checks and cash are easy to lose in the excitement of opening gifts, one is specifically addressed to the recipient and the other is not.
This can help the recipient keep track of the person who gave them the money. If they put the cash to the side, and return it in the future, they may not remember who gifted it to them. Giving money by top stub checks could be a good way to encourage recipients to keep the funds instead of spending them instantly. They’ll have to visit banks or use an app that allows them to deposit the money or cash it, which may take more effort.
Tracing Important Payments
In the event of a large-scale payment for something like the down payment for the purchase of a house, a college tuition payment or deposit to secure a ceremony venue, or the payment of a government agency such as the IRS or the IRS, it’s best to make a check-in paper. This will help you ensure that your payment is received since you’ll know whether the other person deposits or cashes the cheque on the next statement from your bank or via your bank’s online portal. Some banks will also show you the image of the check that was cashed to make sure it’s authentic.
This can also help to prevent you from incurring any costs for late payments as the transactions are all date-stamped. If, for example, your check is stolen or lost, you can request to make the payment void by calling the customer service telephone line or online via your bank’s website. For a stop payment to be placed on your check, you’ll need to opt for the “stop payment” option via the bank’s online portal.
However, you must do this before the check is cashed. You may also need to enter the account number, check number, and the amount in the amount of the cash. Remember that you will likely have to pay a fee in order to stop a check. These charges vary from one bank to bank, but it could cost about 30 dollars to stop the checks, and some banks might cost more.
If You’ve Been the Victim of Fraud
Has your sensitive financial information 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, to the tune of approximately $3.4 billion in losses. And, even more troubling, the same study showed that more victims were forced to pay out of their own pockets to cover the cost of that fraud.
In light of these statistics, it’s only natural to need to ensure your personal information is secured if you’ve been through with something similar. Many customers return to cash or paper checks instead of using cards with credit or debit in local stores. Some may not want to submit their payment details on the internet at retailers’ websites or even use digital and online payment services. While writing a paper-based check isn’t a foolproof method protecting your confidential information offline and swiping your credit card less could aid in reducing the chances of identity theft, fraud, and other financial crime.