You may think of traditional checks as a thing of the past now that there are payment options that can be made digitally like Venmo, Zelle, and Apple Pay, but there remain some scenarios where it’s best to use them. In these instances, it’s wiser or more secure to use a personal check, the best way to use checks in a safe manner, and when it’s okay to not use the checks.
Shopping at a Small Business
Due to their size and credit card processing fees, some small firms are unable to accept credit cards. One study found that just 27% of small businesses would prefer digital transactions (think of credit cards or ApplePay) over traditional payments (cash, checks, and money orders). If you employ someone to mow your lawn, purchase goods at a local market and flea market seller, or even employ a dog walker, then you may be able to keep a checkbook available to pay them.
Gifting Money
If you’re running out of time and are planning an event like a birthday celebration, wedding, or other important family gatherings, that probably means tucking cash into a credit card. However, when you’re giving money away as an offer, dog checks could be a better option as opposed to cash. While both checks and cash are easily lost in the excitement of unwrapping gifts, the latter is specific to the person while the other is not. This helps the recipient keep track of the person who gave them the money. If they put the cash to the side and come back to it later, they may not recall who gave it to them.
Tracing Important Payments
If you’re making a substantial amount of money for something such as the down payment for home construction, tuition bill for college or a deposit to a ceremony venue, or making a payment to a government organization like the IRS It is recommended to make a check-in paper. This can ensure that your payment is received since it will be possible to track whether the other person deposits or cashes the check on the next statement from your bank or through the bank’s online portal. Some banks will even give you a photo of the check that was cashed to ensure that you’ve got it right.
This may also stop you from paying any charges for late payments since the transactions will be all dated.
If, for example, your check gets missing or is stolen, you can make a request to cancel your check by calling your bank’s customer support phone line, or online via your bank’s site.
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. A study found that in the year 2018 14.4 million people across the U.S. were victims of identity fraud to the tune in the amount of $3.4 billion worth of loss. The worst part is that the same study found that more victims had to pay out of their own pockets in order to cover expenses associated with the fraud.
Based on these figures so it’s logical to prefer to keep your details secure if you’ve been through with something similar. A lot of people return to using cash checks or checks made of paper instead of using cards with credit or debit at local retailers. They could also opt not to provide their payment information on the internet at retailers’ websites or utilize online and digital payment methods.
While writing checks on paper isn’t a foolproof method protecting your private information in a secure location and using your credit card with caution could reduce the risk of fraudulent identity theft and other financial criminals.
