Many people think of checking with paper checks as something of the past now that there are digital payment methods such as Venmo, Zelle, and Apple Pay, but there are still certain situations that it’s recommended to use them. These are the instances when it’s safer or more appropriate to make use of a personal or a paper check, the best way to use checks safely, and also when it’s OK to skip them.
Shopping at a Small Business
Because of their size and processing fees, a few small businesses aren’t able to accept credit cards. One study found that just 27% of small businesses prefer electronic payments (think of credit cards or ApplePay) over traditional payments (cash checks, cash, and money orders). So, if you’re hiring someone to mow your lawn, purchase goods from a local retailer or flea-market vendor, or even have the occasional dog walker, you might want to keep a checkbook on hand to make payments to the bill.
Gifting Money
If you’re pressed for time and you’re heading to a birthday party, wedding, or any other celebration of the family, that probably means tucking money into a credit card. However, when you’re giving money away as a gift, top stub checks may be better as opposed to cash. Although both checks and cash are easily lost when you are rushing to open presents, one is addressed specifically to the person and the other one isn’t. This will help the person receiving it to remember who gifted them the money. If they store the money on the side and then return it in the future, they may not remember who gifted it to them.
Tracing Important Payments
When you make a big installment for something like the down payment for an apartment, a tuition bill for college as well as a deposit towards the wedding venue, or even the payment to a government organization like the IRS You may need to use a paper check. This can ensure that your payment was made because you’ll be able to see when the other party deposits or cashes the check on the next bank statement or through the bank’s online portal. Some banks may even provide you with a photo of the check that was cashed so that you can verify the check is valid.
This can also help to prevent you from owing any penalties for late payments since the transactions will be all in the same year. Additionally, if your check gets not present or has been stolen from you, you may request to cancel your payment via your bank’s customer service telephone number or online on the website of your bank.
If You’ve Been the Victim of Fraud
Has your sensitive financial information been stolen or compromised? Don’t worry, you’re not the only one. A study has revealed that in 2018 14.4 million individuals in the U.S. were victims of identity fraud which amounted to a total of $3.4 billion in losses. The worst part is that the same study showed that more victims had to pay from their own pocket to cover the cost of the fraud.
Based on these figures it’s only natural to like to keep your personal information secure if you’ve been through something similar. Many people go back to making cash or checks with paper in lieu of swiping a credit or debit card at local shops. They can also refuse to register their payment information on online retail sites or make use of online and electronic payment methods.
While writing a paper-based check isn’t a foolproof method keeping your personal information off the internet and using your credit card less could aid in reducing the chances in which identity theft is committed, as well as fraud, and other financial criminals.