You might think of paper checks as a thing of the past, but there are electronic payment options such as Venmo, Zelle, and Apple Pay, but there are some circumstances that it’s more beneficial to use paper checks. This is when it might be wiser or more secure to make use of a personal or a paper check, as well as how to use check safely, as well as when you can skip these checks.
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-scale businesses choose digital payments (think debit or ApplePay) in preference to non-digital payments (cash check, cash, and money orders). If you are hiring someone to mow your lawn or buy goods from a local grocery store (or flea markets vendor) or even have the occasional dog walker, you may be able to keep a checkbook in your wallet to pay the bill.
Gifting Money
If you’re in a hurry and planning to attend weddings, birthday parties, or other special events in your family It’s probably best to stash money into a credit card. However, if you’re giving money as a gift, farm animal checks may be a better choice instead of cash. While both cash and check could easily get lost in the excitement of unwrapping gifts, one of them is addressed specifically to the person and the other one isn’t. This can help the recipient recall who gave them the cash. If they store the money on the side, then revisit it later, they may not remember who gifted it to them.
Tracing Important Payments
If you’re making a substantial installment for something like the down payment of home construction, tuition bill for college as well as a deposit towards the ceremony venue, or paying a government organization like the IRS or the IRS, it’s best to make a check. It will make sure that your payment was made because you’ll know when the other party deposits or cashes your check on your next bank statement, or through your bank’s online platform. Some banks will also show you the photo of the check that was cashed to make sure it’s authentic.
It could also prevent the payment of costs for late payments as the transactions are all date-stamped.
In the event that your check gets missing or is stolen, you can ask to cancel the payment by calling your bank’s customer support phone number or online through the bank’s website.
If You’ve Been the Victim of Fraud
Has your personal financial information been compromised or stolen? Don’t worry, you’re not the only one. One study showed that in the year 2018, 14.4 million people in the U.S. were victims of identity fraud in the amount of approximately $3.4 billion. In addition, the study revealed that more of the victims were forced to pay from their pockets to pay the cost of that fraud.
Given these numbers, it makes sense you’d prefer to keep your details secure if you’ve already dealt with similar issues. Many consumers go back to using paper checks or cash instead of using a credit or debit card at local shops. They might also choose not to register their payment information on online retail sites or use online and digital payment methods.
While writing a paper-based check isn’t an absolute security measure keeping your private information in a secure location and using your credit card less may reduce the chance of identity theft and fraud, and other financial criminals.