You might think of checking with paper checks as something of the past, but there are electronic payment methods such as Venmo, Zelle, and Apple Pay, but there are some situations when it’s recommended to use them. In these instances, it’s more secure or more convenient to make use of a personal or a paper check, as well as how to use checks in a safe manner, and when it’s okay to leave them out.
It is possible to write your check in one of the following circumstances:
- Shop at a small store
- Giving money as a gift
- Tracing important payments
- Security of your identity
Shopping at a Small Business
Because of their size and credit card processing costs, some small businesses don’t accept credit cards. In fact, one study found that just 27% of small businesses prefer electronic payments (think debit or ApplePay) in preference to non-digital payment (cash or checks, as well as money orders).
If you’re hiring someone to mow your lawn, purchase items from a local grocery store as well as a flea market vendor or even have the occasional dog walker, you may want to keep a checkbook in your wallet to pay the bill.
Gifting Money
If you’re pressed for time and are planning an anniversary party, wedding, or other family celebration This could be the time to put money into a debit card. If you’re planning to give money as gifts, dog checks might be a better choice as opposed to cash. While both cash and check could easily get lost in the excitement of opening gifts, one is addressed specifically to the person and one is not. This can help the recipient to remember who gifted them the money. If they store the money on the side and revisit it later, they may not remember who gifted the money to them.
Giving money by check could help the recipient save the money rather than spending them instantly. You’ll need to go to a bank or use an app on their mobile to deposit or cash it in, which could take some effort.
Tracing Important Payments
If you are making a major amount of money for something such as the down payment of a new property, tuition payment for college or a deposit to the wedding location, or even paying a government organization like the IRS It is recommended to make a check-in paper. This can help ensure your payment was received because you’ll be able to see when the other party deposits or cashes the check on your next bank statement, or through the bank’s online portal. Some banks may even provide you with the image of the check that was cashed to confirm that the transaction is the correct one.
This can also help to prevent you from having to pay charges for late payments since the transactions will all be on the same date. If, for example, your check gets stolen or lost, you can request to make the payment void by calling the customer service telephone line or online using your bank’s website. To make a stop payment on an unpaid check, you’ll need to opt for”stop pay” from the “stop payment” option via your bank’s online portal–but you should do this prior to the check being cashed.
There’s also the need to enter the account number, the number of the check along with the amount of your check. Keep in mind that you will likely have to pay a cost to stop the check. These charges vary from one Bank to Bank, however, it could cost approximately 30 dollars to stop the checks and some banks might cost more.
If You’ve Been the Victim of Fraud
Has your personal financial information been stolen or compromised? You’re not alone. A study revealed that in 2018, 14.4 million people in the U.S. were victims of identity fraud in the amount of approximately $3.4 billion losses. Even worse, that same study found that more victims had to pay from their pocket to pay for the costs of that fraud. Based on these figures it’s only natural to be keen to keep your data secure if you’ve already dealt with something similar.
Many people go back to making cash or checks with paper in lieu of swiping their credit or debit cards at local shops. Some may not want to input their payment details online on websites for retail stores or even use digital and online payment options. While writing a check on paper isn’t the most secure method keeping your private information off the internet and using your credit card with caution could assist in reducing the likelihood of identity theft and fraud and other financial criminal acts.