Many people think of check writing as a thing of the past when there are payment options that can be made digitally such as Venmo, Zelle, and Apple Pay, but there are still some circumstances that it’s more beneficial to use paper checks. These are the instances when it’s better or safer to make use of a personal or a paper check, how to use checks safely, and when it’s okay to not use them.
It is possible to write a check when in one of the following scenarios:
- Shop at a small-scale business
- Cash gifts
- Tracing important payments
- You can protect your identity by securing it.
Shopping at a Small Business
Because of their size and processing fees, a few small businesses don’t accept credit cards. One study found that just 27% of small companies choose digital payments (think credit cards or ApplePay) over non-digital ones (cash checks, checks, and money orders). If you’re hiring someone to cut your lawn, purchase goods from a local grocery store or flea market vendor, and even employ the occasional dog walker, you might want to keep a checkbook at hand to pay them.
Gifting Money
If you’re in a hurry and you’re planning the wedding, birthday party, or other celebration of the family, that probably means tucking money into a credit card. If you’re planning to give money as a gift, checks may be better instead of cash. While both checks and cash are easily lost in the excitement of opening presents, one of them is specifically addressed to the individual and the other is not.
This helps the recipient recall who gave them the cash. If they set cash to the side and revisit it in the future, they may not recall who gave it to them. A check-to-payoff gift can also encourage the recipient to keep the funds instead of spending them all at once. You’ll need to go to the bank or use an app that allows them to cash or deposit it, which will require some extra effort.
Tracing Important Payments
In the event of a large-scale payment, such as the down payment of new property, college tuition bill as well as a deposit towards a reception venue or even paying a government institution like the IRS It is recommended to make a check-in paper. It will ensure that your payment was received because you’ll be able to see what the recipient of the check does when it deposits or cashes the check in the next bank statement or through your bank’s online platform. Some banks will also show you an image of the check that was cashed to ensure that it’s the correct one. It could also prevent you from having to pay penalties for late payment since the transactions are all date-stamped.
In addition, if your check is lost or stolen It is possible to cancel your payment through the bank’s customer service line or online via the website of your bank. To make a stop payment on an unpaid check, you’ll need to choose “stop” on the “stop payment” option via your bank’s online portal–but you should do this prior to the check has been cashed. You may also need to enter your account number, the check number as well as the value of the check. Be aware that it is likely that you’ll have to pay a cost to stop the check. The fees will vary from bank to bank, but it could cost approximately $33 to stop the cash, and some banks could charge even more.
If You’ve Been the Victim of Fraud
Are your confidential financial data been stolen or compromised? Don’t worry, you’re not the only one. A study revealed that in 2018, 14.4 million people in the U.S. were victims of identity fraud in the amount of $3.4 billion. The worst part is that the same study found that a greater number of victims had to pay from their pocket to pay for the costs of that fraud.
In light of these statistics, it’s only natural to want to keep your information safe, especially if you’ve previously dealt with something similar. Many customers return to using cash checks or farm checks instead of using cards with credit or debit at local retailers. They might also choose not to register their payment details on retail websites online or use online and digital payment methods. While writing a check on paper isn’t an absolute security measure making sure your information is secure on the Internet and using your credit card more often could aid in reducing the chances of identity theft and fraud, and other financial criminals.