When was the last time you paid with a check?
By Deborah Jeanne Sergeant
You used to see people whip out a checkbook to pay for their groceries at the checkout line or cover the tab at a restaurant. Do you recall standing in line at the bank on a Friday night to deposit your paycheck? Have you converted most of your bills to automated payments (or at least electronic payments)?
It feels like check writing has gone the way of the dodo. It’s hard to deny the convenience of swiping a card, receiving direct deposits from the company and setting up bill payments to occur automatically.
Many credit cards offer cash back or points that may be redeemed for gift cards — more reasons to insert a chip in a card reader at the store rather than fill out a check (especially since checks cost users money).
Receiving direct deposits spare employees a trip to the bank to make the deposit. With online banking, it’s not hard to keep track of deposits.
Automated bill paying can save consumers late fees, envelopes, stamps and time and it doesn’t cost anything. The convenience is tough to beat.
With all of these reasons to forgo checks, it’s easy to see why their use is declining. Andrew Van Dam, a Washington Post writer, stated in an article in late 2023 that in 2000, six out of 10 non-cash payments were made by check. That number now is one in 20
Randy L. Zeigler, certified financial planner, chartered financial consultant and private wealth adviser with Ameriprise Financial Services in Oswego, said that “many businesses still issue regular business checks in payment of bills. Many business owners have converted regular bill payments — utilities, cell phones, regular fixed inventory purchases — onto their credit card accounts to make payments automatic and tracking simpler.
“Then the resultant bill for the credit card is paid with one business check instead of making several individual payments. And the business may earn credits or cash back as part of the payment structure.”
Younger people are less likely to write checks than older people. Writing checks is largely a “generational thing,” according to Cynthia Scott, a chartered financial consultant and founder and president of OMC Financial Services, Ltd. in DeWitt.
“The older someone is, the more likely they are to not use technology and to write checks,” Scott said.
Venmo, PayPal and automatic payments require using a computer.
Usually, one party must pay a convenience fee for the transaction. If that burden falls on the consumer, some consumers want to avoid the extra fee and base their source of payment on what costs them least.
The website ChecksUnlimited.com charges about $.76 per check, plus shipping. However, buying more checks offers a volume discount. The cost per payment is the same, regardless of the purchase price. Some online sales methods like PayPal base the transaction fee on the size of the purchase price, similar to how credit cards operate.
Checks can offer easy documentation. Some transactions should have a paper trail for legal reasons. For example, Scott advises people acting as power of attorney to write checks, as this can provide an easy paper trail.
Another area where Scott sees more paper checks used than others is for people patronizing small businesses.
“My hairdresser and manicurist like checks because they can’t absorb the 3% surcharge for credit cards,” Scott said. “Some of the fees are higher with Square with other companies.”
Still, many consumers prefer the convenience of digital payment options, along with increased safety, according to Lori Teifke, territory manager at NBT Bank. She cited the “recent increase in criminal activity targeting checks through the postal service. It is not wrong to say that check usage has decreased. However, many customers still use checks to conduct their banking business.”
