Do You Still Need Personal Paper Checks?

Paper checks can be expensive and they are definitely a hassle. But they are necessary, aren’t they? Paper checks have been around since 3rd Century A.D. Surely we’ve improved our payment methods since then.

Yes, we have. But only just. Starting in England in 1770, humans went from hand-writing checks to printing paper checks. But since then, this payment method has changed little. Typically, when something remains stagnant for too long, it gets forgotten. Is that happening with checks?

Yes. However, many people still argue checks are necessary for things like sending money through the mail or paying rent. This doesn’t make sense. All payments today should be done electronically for many reasons. First, sending payments electronically saves you money. Paper is expensive when compared with electronic transfers. It’s why many companies offer a 1/4 percent discount for those who pay electronically. Second, electronic transfers are easier for record keeping. Instead of consulting a paper carbon copy check, just look at the transaction online. It makes accounting far easier. Third, paper checks = opportunity cost lost. When paper is working its way through the mailing system, its opportunity lost if you’re the recipient. You can’t get started earning interest on the money right away. It sometimes takes a week before it is processed and into your account. The fourth reason why checks can be forgotten is because it enables us to procrastinate. Many people write checks which may not clear right away. That’s dangerous and can lead to many overdraft fees. We should only write checks we know we can cash. It’s the same way many people choose to use credit cards… only spend on credit what you have in the bank. The fifth reason to avoid personal paper checks is because of the environment. Creating paper checks means a lot of trees must die and a lot of pollution must be emitted. That way of doing business isn’t sustainable.

There are many people today who are check-free. Believe it or not, most high school and college students can’t even fill out a check. And who cares?

Mobile Deposits

Mobile deposits are used in this time of transition. When a person receives a check, they simply take a few photos of the check and send the images to their bank. The bank recognizes the critical information and posts the money to the right account. The check can then be thrown away.

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Alternatives to Personal Paper Checks

There are many alternatives to carrying around a checkbook. This is good because sometimes (very rarely) we actually do want a check. This is typically when we want to make a large ‘cash’ purchase such as buying a car. Sometimes it’s nice to have a paper check instead of a briefcase full of hundred-dollar bills.

When such instances arise, you can get a cashier’s check, a teller’s check, or a traveler’s check. All can be had at a local bank. The teller’s check is usually the cheapest. It costs around $5.

Conclusion

Personal paper checks are not necessary. When the rare occasion arises where you need a paper check, opt for a cashier’s check, a teller’s check, a traveler’s check, or a very cost-friendly Costco check. Kindly remind people that sending you money would be cheaper if they went electronic.

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