ANSWERS: 1
  • Paper checks have dominated the financial transaction sector for decades, but electronic payments, such as credit and debit cards, are quickly making checks a thing of the past. Checks, however, still hold a niche due to some benefits they offer.

    Advantages for Business

    For businesses, most of the advantages of using a paper checks come from the smaller or usually nonexistent processing fees. Credit card payment processors normally charge a business to use electronic transfer systems.

    Advantages for Consumers

    While banks do not charge consumers any fee for using a debit or credit card or a paper check, checks make it harder to spend money and go over your budget. This helps promote financial responsibility, especially during economic downturns.

    Considerations

    In some instances, paper checks are still the only option; many court houses refuse electronic payment. Also, most employers require a voided check in order to sign up an employee for direct deposit.

    Fun Fact

    From 2003 to 2006, the number of checks used in the U.S. declined from 37 billion to 30 billion, but the total amount of money transferred using checks increased from $41.1 trillion to $41.6 trillion.

    Warning

    Although some individuals may see some benefits to using a paper check, retailers and banks are starting to phase them out. Great Britain, for example, will abolish checks completely by 2018.

    Source:

    Long Island Business News

    MSN Money

    The Guardian

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