With the growth of the adoption of digital technology, people all over the world are increasingly using digital means to carry out everyday activities. This is true regarding payment methods since technology permits people to transfer their money instantaneously from one corner of the world to another. Despite the increasing adoption of electronic payment methods, many individuals still prefer paper checks to make payments. After all, according to Pew Research Center, 7% of Americans do not use the internet. For such individuals, checks are one of the few payment methods they can avail since they won’t be using digital payment methods. Let’s try and understand why checks are here to stay in this digital age.
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1) There’s still an aging population that prefers things done traditionally
The US has many elderly individuals who are not comfortable with internet or mobile phone usage. As such, options for digital payments are not available to them. Such people still prefer to make payments either in cash or by check. This is especially the case when it comes to senior citizens, i.e. those individuals who are over 65. In such a scenario, the use of certified checks is highly recommended because the validity and genuineness of payments are ensured. Read more on how to get a certified check to assess when you should insist on this mode of check payment.
2) You do not have to compromise your privacy
Privacy concerns are rising every year with the ubiquitousness of digital transactions. While there are many ways to send money online, the chances of non-tech-savvy senior citizens becoming a victim of cybercrime is high. With cybercrime on the rise, it is vital for you to ensure that you do not share your personal details with all and sundry. When it comes to paper checks, you can deposit the check amount into either your or a third party’s bank account without needing to give electronic access to anyone.
3) Easy to stop payment after issuing a check
Digital payments, once initiated, usually cannot be canceled, even if you make a mistake. You’ll need to depend on the recipient’s generosity to get a refund of the paid amount. However, in the case of paper checks, you can quickly stop payment if you issue a check by mistake. There is usually a lengthy duration involved in check processing. So, if you believe you’ve made a mistake, just call the bank or drop them an email to cancel the check before the check’s encashed.
4) Checks are a safer option
Paper checks help to send and receive money without any complications. With the option of tracing paper checks, you can track how long it will take for the receiver to get the money. This will help prevent the money from being sent to the wrong recipient which may happen if you opt for online payment and even help in identifying fraud or theft. Using checks for specific purposes can help you avoid harm, directly get the cash deposited into your account, and withdraw it based on your convenience.
5) Many businesses may prefer check payment over electronic payment methods
In a lot of cases, businesses may prefer to receive payment by paper check. Reasons could be as simple as the extra processing fees that the company will need to fork out to encash the check. Furthermore, checks help create a paper trail that documents how much money has been paid, who signed the check, and whether the check was actually deposited. Another reason that some businesses prefer sticking to checks as a payment method instead of electronic payment methods is that the electronic payment process is subject to variations at both the federal level and also in all fifty states of the US.