Just five years ago, people used to carry their checkbooks everywhere. They even had special compartments in their purses that offered easier access to the often-used pad of checks. However, today, thanks to technological advancement, you can leave your checkbook at home.
This transformation in consumer habits is due to many aspects, like the introduction of convenient payment platforms, growth in online shopping, the desire to stay away from bounced check charges, and worries about identity theft and fraud. Most people find it easier and faster to swipe a credit or debit card than to write a check while shopping at the malls. Many online traders accept debit and credit card payments. Additionally, online bill payment solutions make sending payments convenient by automating the procedure.
Another reason for the declining use of paper checks is security concerns. If your checkbook is stolen or lost, you might experience the nightmare of attempting to undo the damage. Furthermore, personal checks contain a lot of banking and personal data for identity thieves and scammers. Because cash isn’t withdrawn instantly from the bank account when writing a paper check, bouncing checks will result in high fees, which is a concern.
Nevertheless, despite all this, there are some compelling reasons to continue using your checkbook.
Why you should continue using paper checks
It makes sense to use personal checks rather than other modes of payment. Paper checks are convenient, and using them will save you a lot of money and protect your finances.
- Most business charges additional fees for credit card payments
Government organizations and utility companies might accept debit or credit cards via 3rd party processors. The payment processing company will charge extra fees if you swap the card to make the payment.
- Make payments during utility outages.
Stores depend on electronic machines to process credit and debit transactions. If phone systems or power are out of use in your region, cash and personal checks will be the only payment method.
Because the ATMs will not be in service, paper checks might be the only way to pay for goods and services.
- Some companies prefer money orders or paper checks
Some companies don’t accept debit or credit payments. This business comprises insurance firms, some government agencies, and traders. Organizations( like fraternal lodges, churches, and community groups) charge fees or take in donations and landlords.
- Gift giving
Your gift recipients will deposit the check into their accounts and spend the cash however they want, unlike gift cards limited to a specific merchant. That means the cards can be used at the stores that accept that credit card brand.
Final Word
Paper checks will continue to play an important role in finance management. Therefore, remember how to use your personal check correctly. Protect your data by restricting the items you include in the check. Lastly, assess your payment methods before making any payment such that you can use a payment option that makes a lot of sense.