Do you still write checks for your monetary transactions? Although most people use some form of electronic payment today, checks are still being used in this modern era. With the ease of technology, many payers and payees have done away with personal checks and business checks. However, a large number of retail stores still accept them as a form of payment. Think about many of your household bills and personal services can only be paid by checks via mail. Read on to learn more about why checks are still a viable method of payment.
Strong Security Features
The average person is probably wary of checks due to possible identity theft and electronic hacking. Thieves target personal check owners because the paper strips can allow them to gain access to their victims’ money. But, checks now have strong security features to prevent those breaches.
The vulnerability of a check exists on the front side. Your bank’s name, account number, and routing number are on full display. You can get a built-in theft alert by purchasing checks with tamper-resistant security coating. Any attempts to alter the print or manipulate the paper will be deterred, and you will be notified.
Yes, the use of checks as a form of payment is declining. However, the decline is slow. Deluxe, one of the leading producers of checks in America, says check usage dropped more than 9 percent in 2004. By 2012, it was down to 6 percent. Sounds like a portion of the population is still relying on checks.
One reason for this lies with the surcharges that come with electronic payments. Businesses do not want to pay the merchant fees that are tied to debit and credit card transactions. Every time you swipe your card at a store, the business incurs a fee. This is why some retailers require a minimum purchase price before allowing you to use your card. By the way, American Express has the highest merchant fees. The fees also apply to the business when paying online or with a representative on the phone.
Businesses still appreciate writing and receiving checks. This is especially true for small businesses. As stated before, the important information on a check is on the front side. Small businesses can make copies of this for their records with a scanner or copier. They can input that data into their accounting software and have a hard copy of it for paper files. The check issuer and the check depositor both win.
Many retailers like Wal-Mart return your check to you after they scan it at the register. This goes over well with baby boomers and more mature adults. They can hold on to that check as a record of their purchase. They also don’t have to worry about the cashier or other employees having access to their confidential information.
Physical checks have gone through many revisions over the centuries, but the intent has essentially remained the same. Goods and services are paid with funds from your bank account via a piece of paper. Checks will be a staple in payment landscape for the foreseeable future.
Article Submitted by Community Writer.