Disadvantages of using Checks

Checks have been used for quite a while to settle bills and pay for transactions, but they are continuously fading out, thanks to technology which has led to the evolution of other payment methods, such as electronic banking/bill pay, debit or credit cards and of course the traditional cash system.

If you are still writing checks for most of your transactions, here are reasons why you should quit. 

1. Checks are not acceptable everywhere.

Some places don’t accept checks at all. So, it might be hard for you to use your checks as you would with cash or a debit card. Then, some don’t accept out of state or country checks, so if you ever travel, your check book might be of no use to you.

2. Time consumption.

Having to write a check whenever you make a payment or purchase a product can be time consuming. So, instead of wasting time, just leave the checkbook alone and use a card (debit or credit, but preferably a debit card) and you will be through with your transaction in a snap of a second.

3. It could be costly.

You will have to pay for checks whenever you run out. This is a cost that can be avoided if you use cash or a debit card. Plus, if you use checks to pay bills, that means you have to mail in a payment, which requires postage. If you used online banking with bill pay, you would not have to worry about this. There is also a possibility that your check may not arrive on time when you mail it, or it might get lost in the mail, thus costing you more in terms of late payments.

4. More fees costs if you accidentally go into overdraft.

You could easily put your account into overdraft if you don’t remember to write down all your transactions. If the check takes long to be posted, it is very easy to forget about it and assume that you have more money in your account than you actually do. If your check bounces because you didn’t have sufficient funds at that time, this will turn out to be costly; in addition to the non-sufficient funds fee, you will incur a fee for a returned check, and make your payment late if it’s a bill (in which case you will pay a late fee and higher interest charges in case it’s a credit card or loan).

5. Your personal information is not very secure.

When you use a check, you are required to provide some personal information, such as driver’s license, address, etc. Sometimes you never know in whose hands this information ends, so you could easily become a victim of identity theft. With cash or swiping a card, no one asks for your information.

6. No perks and minimal bonuses. You are missing out on the perks that come with using a debit or credit card, such as rewards and savings bonuses. These are not available when you use a check for payments.

7. Immediate cash back is almost impossible.  

If you need immediate cash, you are better off with a debit card which you can use at most merchants that offer the cash back feature as a convenience for customers. If you are lucky to get anyone who gives you cash on a personal check, it is merely a very small amount, say $20 back. That’s if anyone is willing to even take your check in the first place.

8. Burdensome.

Carrying a check book all the time can be a burden. Imagine all the transactions you conduct in just a week and think about the burden of having to carry your check on you all the time. This is an extra load in your pockets or hand bag. Why burden yourself with this when you can just load a few bills or cards in your wallet or purse and be gone.