It’s easy to think of paper checks as a thing of the past now that there are digital payment methods such as Venmo, Zelle, and Apple Pay, but there are still some instances in which it may be better to utilize them. In these instances, it’s more secure or beneficial to use a personal or paper check, how to utilize checks safely, and also when it’s okay to not use them.
You might consider writing checks in any of the following scenarios:
- Shop at a small store
- Gifting money
- Tracing important payments
- Your identity is at risk.
Due to their size and credit card processing fees, a few small businesses aren’t able to accept credit cards. A recent study revealed that only 27% of small companies prefer digital payments (think cash or ApplePay) over non-digital ones (cash or checks, as well as money orders). Therefore, if you contract someone to mow your lawn, purchase items from a local grocery store as well as a flea market vendor, or even have the occasional dog walker, you may want to keep a checkbook on hand to pay the bill.
Gifting Money
If you’re running out of time and planning to attend a birthday party, wedding, or another important family gathering, that probably means tucking money into a credit card. But if you’re looking to give money as presents, checks may be a better choice than cash. While both cash and check are easily lost when you are rushing to open gifts, one is addressed specifically to the recipient, while the other isn’t. If you are thinking about giving money to a younger child, it would be best if you would use farm animal checks, that are colorful and will hold kids’ attention. This way they are less likely to lose them.
This helps the recipient keep track of the person who gave them the money. If they set cash to the side and revisit it later, they might not recall who gave it to them. Giving money by check could inspire the recipient to keep the funds instead of spending them immediately. You’ll need to go to a bank or use the mobile app for depositing or cashing it in, which could take some extra effort.
Tracing Important Payments
When you make a big installment for something like the down payment for an apartment, a college tuition fee, a deposit for a location for a wedding, or even making a payment to a government agency, such as the IRS You may need to make a check-in paper. This can ensure that the payments were received as you’ll be able to see how the other party deposit or cashes the cheque on your next bank statement or through your bank’s website. Some banks can even provide the image of the check that was cashed to ensure that it’s correct. This may even help prevent the payment of penalties for late payment since the transactions will be all dated.
Additionally, if your check is stolen or lost You may request to be able to cancel the transaction through the bank’s customer support number or online on the website of your bank. If you want to make a stop payment on the check, you’ll have to select”stop payment” in the “stop payment” option via the bank’s online portal. However, you must do it before the check is cashed. You might also have to enter the account number, the number of the check, and the amount for the cheque. Take note that you’ll likely need to be charged a fee to stop the check. The fees will vary from bank to bank, but you may end up paying about $30,000 to stop the transaction, and some banks could charge more.
If You’ve Been the Victim of Fraud
Has your sensitive financial information been stolen or compromised? It’s not a problem for everyone. One study found 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 in losses. Even worse, that same study showed that more victims had to pay from their pocket to cover the cost of this fraud. In light of these statistics, it’s only natural to want to keep your information secure if you’ve been through with something similar.
Many people go back to using cash checks or paper checks instead of using debit or credit cards in local stores. They might also choose not to input their payment details on the internet at retailers’ websites or make use of online and electronic payment options. While writing a paper check isn’t an absolute security measure, keeping your sensitive information in a secure location and using your credit card less could reduce the risk of identity theft and fraud, and other financial crimes.