Many people think of checks made of paper as being a thing of the past now that there are electronic payment methods like Venmo, Zelle, and Apple Pay, but there remain some scenarios where it’s best to use them. These are the instances when it’s more secure or more convenient to use a personal check, the best way to use checks in a safe manner, and when you can skip them.
You might consider writing checks in any of the following situations:
- Shop at a small shop
- Gifting money
- Tracing important payments
- Your identity is at risk
Shopping at a Small Business
Because of their size and processing fees, some small companies don’t take credit cards. In fact, one study found that only 27% of small businesses prefer digital payment methods (think ApplePay or credit card) ApplePay) instead of non-digital transactions (cash, checks, and money orders).
So , if you are hiring someone to mow your lawn, purchase items from a local grocery store (or flea markets vendor) or even employ a dog walker, you may be able to keep a checkbook at the ready to pay them. Gifting Money If you’re running out of time and are heading to a birthday party, wedding, or another important family gathering, that probably means tucking money into a card.
However, if you’re giving money as a gift, inspirational checks may be a better choice over cash. While both cash and checks are easily lost in the excitement of opening presents, one is specifically addressed to the recipient and the other isn’t. This helps the recipient recall who gave them the cash. If they store the money on the side and revisit it later, they won’t recall who gave it to them.
Giving money by check could help the recipient save the money rather than spend them in a hurry. They’ll have to visit any bank or the mobile app to deposit or cash it in, which could take a little more effort.
Tracing Important Payments
If you are making a major amount of money for something such as the down payment for an apartment, a college tuition payment as well as a deposit towards a ceremony venue, or the payment of a government agency such as the IRS It is recommended to use a paper check. This will help you ensure that your payment was accepted because you’ll be able to see whether the other person deposits or cashes your check in the next statement from your bank or through the bank’s online portal.
Some banks will even show you a photo of the check that was cashed to ensure that it’s accurate. This can even stop the payment of any costs for late payments as the transactions will all be dated. Additionally, in the event that your check is lost or stolen you may request to stop your payment by calling the customer service telephone number or online on your bank’s website. To place 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 have to do it prior to when the check has been cashed.
It is also possible to enter your account number, the check’s number along with the amount for the cheque. Remember that it is likely that you’ll have to pay a fee in order to stop the check. The cost varies from one banking institution to another, however, you could end up paying about $30,000 to stop the transaction and some banks could charge even more.
If You’ve Been the Victim of Fraud
Have the financial details that are sensitive to you 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. Additionally, that study showed that more victims had to pay out of their own pocket to pay for the costs of the fraud.
In light of these statistics, it makes sense you’d prefer to keep your details secured if you’ve been through similar issues. Many consumers go back to using cash or checks made of paper instead of using a credit or debit card at local shops. They can also refuse to provide their payment information on retail websites online or even use digital and online payment services. While writing a paper-based check isn’t a guaranteed method making sure your information is secure offline and swiping your credit card less could assist in reducing the likelihood of identity theft, fraud, and other financial crimes.