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In a world where financial transactions are becoming more and more digital, are there still opportunities for paper checks? According to research…yes.
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Other: GOBankingRates’ Best Checking Accounts of 2023
In GOBankingRates’ Best Banks 2023 survey of 1,000 Americans, 22% of respondents said they write a check at least once a month. And surprisingly, the largest percentage of these respondents belonged between her 18th and her 24th year (28%). Checks may sound like a somewhat outdated concept, but they can be used to meet specific needs now and in the near future.
Here are some of the main reasons why checks are necessary:
Valid payment method
If you don’t have cash, credit or debit cards to pay for essential goods and services, many people and places will accept checks. It states that physical checks can still be used.
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Employment of Contractors. Contractors who work in your home typically only accept cash or physical checks for services, Kaul said. If you choose to pay by credit card, you may incur additional fees.
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tuition fee. Families with school-aged children often have to pay for various activities throughout the school year. It may be easier to write a physical check for school fees than sending a child to school with cash that can be lost, Kaur said.
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A physical magazine subscription. If you still subscribe to physical magazines, we encourage you to pay for these subscriptions by physical check. “If you use a credit card, some companies will automatically charge your credit card when you renew, whether you intend to renew or not,” Kaul said.
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groceries. Yes, many grocery stores and retailers, such as Walmart, accept physical checks at checkout. This is especially useful if your debit or credit card is lost or stolen, Kaul said. Until then, physical checks may serve as an alternative payment method.
Record keeping
Noah Schwab, CFP, Stewardship Concepts Financial Services, said writing a physical check is an easy way to keep track of transactions and expenses.
When you write out your check, update your checkbook accordingly. As a note, write down the date the check was written, to whom it was issued, the amount of the check, and the check number. Writing down the check number is important for tracking purposes. This will tell you when checks were cashed and which checks were in your account.
Poll: How much tax refund is expected in 2023?
safety
Schwab said that writing a check is safer than using a debit or credit card if you want an extra layer of security when making payments. The checks require a signature and are more difficult to forge, Schwab said.
Make physical checks even more secure by following careful mailing practices. Many people mail checks to their mailboxes, but these can be intercepted by mail thieves. If you are mailing an important paper check, such as a tax refund payment by mail, please bring it in person to your nearest USPS location. Please leave your check inside to ensure it is sent to the mailroom immediately and is under the control of our mail staff.
No extra charge
What if you’re planning on writing a check and handing it directly to a contractor or grocery store as a form of payment?
“Unlike credit and debit card transactions, you typically don’t have to pay extra to write a check,” Schwab said.
building credit
Can physical checks help build credit? Schwab said people who use checks to pay bills can build a credit history.
“Some financial institutions offer checking systems that are linked to credit bureaus and can report check-writing activity to the credit bureaus,” Schwab said. “This helps build credit by consistently writing checks and making payments on time.”
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This article originally appeared on GOBankingRates.com: 5 Reasons You Still Need to Check
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