You may think of checking with paper checks as something of the past, but there are payment options that can be made digitally like Venmo, Zelle, and Apple Pay, but there are some situations when it’s recommended to use them. This is when it might be more secure or beneficial to use a personal check, how to utilize checks in a safe manner, and when it’s okay to leave them out.
You might want to make checks in any of the following scenarios:
- Shop at a small 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 firms aren’t able to accept credit cards. One study found that just 27% of small businesses prefer digital payment methods (think ApplePay or credit card) in preference to non-digital payment (cash check, cash, and money orders). If you’re hiring someone to cut your lawn, purchase goods from a local grocery store or flea-market vendor, or even hire a dog walker, you may want to keep a checkbook at the ready to pay them.
If you’re in a hurry and you’re planning an anniversary party, wedding, or special family event this could mean putting money into a card. But when giving money as a gift, checks may be better than cash. While both cash and check could easily get lost in the excitement of unwrapping gifts, one is specifically addressed to the recipient and the other is not. This can help the recipient keep track of the person who gave them the money.
If they store the money on the side and then return it later, they could not recall who gave the money to them. The gift of money through cat checks could help the recipient save money instead of spending them in a hurry. They’ll have to visit the bank or use a mobile app to deposit the money or cash it in, which could take more effort.
Tracing Important Payments
When making a substantial installment for something like an amount to be used towards a downpayment on an apartment, a college tuition payment or a deposit to the ceremony venue, or an installment to a federal institution like the IRS It is recommended to use a paper check.
This can ensure that the payment was accepted because you’ll know the date that the other party deposits or cashes the check on your next bank statement or through your bank’s website. Some banks will even show you the image of the check that was cashed to make sure it’s correct. This may even help prevent the payment of any penalties for late payment since the transactions will all be dated. If, for example, your check is stolen or lost You may request to make the payment void by calling the bank’s customer service line or online through your bank’s website.
For a stop payment to be placed on the check, you’ll have chosen “stop” on the “stop payment” option via your bank’s online portal–but you must do this before the check is cashed. You might also have to enter the account number, the check number along with the amount in the amount of the cash. Take note that you’ll likely need to pay a fee to stop the check. These fees vary from the bank you are using to stop it, but you could end up paying about thirty dollars for stopping the cheque and some banks could be charged more.
If You’ve Been the Victim of Fraud
Have the financial details that are sensitive to you been compromised or stolen? It’s not a problem for everyone. One study showed 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 of losses. Additionally, that study found that a greater number of victims had to pay from their own pocket to cover the cost of that fraud. With these numbers is logical that you’d be keen to keep your data safe, especially if you’ve previously dealt with similar issues.
Many consumers go back to using paper checks or cash in lieu of swiping the debit or credit card at local shops. They may also decline to register their payment details online on websites for retail stores or even use digital and online payment services. While writing a paper-based check isn’t a guaranteed method, keeping your sensitive information online and not using your credit card less could aid in reducing the chances in which identity theft is committed, as well as fraud and other financial crimes.