It may seem awkward to use checks when everything goes digital; however, checks are still a useful and popular means to pay. Though millions of checks are issued (certified checks, cashier’s checks), the lion’s share belongs to personal checks. To understand why people are still using personal checks, let’s delve into their specifics and address some of the most frequently asked questions about personal checks:
- What are personal checks?
- How do personal checks work?
- What are the advantages of using personal checks?
- What are the alternatives to using personal checks?
What Are Personal Checks
A personal check is a paper slip signed by the bank account holder that authorizes the payee to get a payment. Personal checks are connected to your bank account, and every time you make a payment by check, it is seen in your account extract so that you easily track your expenses. You can pay the bills, make purchases or pay for anything you want with checks or whatever you want as long as the payee accepts checks.
Checks include:
- Amount of money to be withdrawn in numerical and written form
- Name of the recipient
- Account number
- Routing number
- Date
- Signature
The payee can use either cash the check at any cashing store nearby or transfer it into their bank account.
The Advantages of Using Personal Checks
A Bank Account Is Not Required to Cash a Check
If you lose your cash, anyone who finds it can spend it; however, if you fail a check, the stranger who will see it will face difficulties in cashing it. Banks and cashing agencies check customers’ IDs to verify that the signatures are legit.
A Bank Account Is Not Required to Cash a Check
To receive direct deposits, you must have a bank account to accept direct deposits, whereas checks may be cashed at a nearby cashing store. There is no need to open a bank account or visit a bank.
It May Take a Day to Cash a Check
Though check cashing timing may appear to be a disadvantage at first glance, if exploited carefully, this trait may be leveraged to your advantage. For example, one or two business days might be enough to ensure you have enough money in your account to cover the check. In addition, You can immediately show proof to the payee that the payment has been made.
You Can Keep Track of Your Checks
Checks are not only a safer way to get and make payments, but they are also easily tracked. When you use a check, the bank creates a copy with all the necessary information. So you always know how much you spend, who signed the check, and when.
You Can Safely Send Checks by Mail
You can’t just send cash through the mail, as thieves will easily discern it; you can send checks without security concerns. It will be hard to determine whether there is a check in the envelope.
The Disadvantages of Personal Checks
The main disadvantages of personal checks are:
Cost: Issuing a check is costless; the issuer usually pays to order checks and envelopes. The payee pays for cashing checks at teh stores.
Processing time: Payments with personal checks might not be acceptable when time matters to you, as processing might take days.
How to Get Personal Checks?
You can order personal checks online from check printers, your bank, or even print them yourself.
Ordering personal checks from your bank is the safest and easiest option to get them if you are ready to pay a bit higher costs. Although you can just call your bank or credit union and order checks, you can also complete the process of ordering checks online for your convenience. You will spend no more than 5 minutes ordering checks from your bank.
Ordering personal checks online from check printing companies is an inexpensive way to acquire them. In addition, you can play along with the design the way you like and get personalized checks. However, here you should find a legitimate check printing organization as you trust your banking information.
Printing checks yourself is a cheaper way to get them as compared to ordering them from banks. However, you need to address the bank’s requirements and know that every mistake can result in delays and additional costs from banks. So, though a bit cheaper, printing your checks may face some challenges.
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What Are the Alternatives to Personal Checks?
If you don’t want to order personal checks, you may choose electronic money transfer options that are secure and quick. No days requiring processing, no thefts, no postage fees. Here are some of the alternatives to personal checks:
Credit or Debit Cards: Credit cards are a popular way to pay. However, don’t forget that the credit card company charges the person that takes the credit card a percentage of the transaction and can even levy an extra predetermined transaction fee, which can quickly mount up. You can accept credit card payments through a website or app on your computer or mobile device.
Virtual Cards: A virtual card is an entirely virtual credit card. Virtual card issuers generate a temporary card number linked to a buyer's existing account, which may be used to make an online transaction. Many customers choose virtual cards since their actual account details are not discernible from the card number in the case of a data breach.
Digital (E-Wallets) Wallets: These online services allow you to get direct deposits and pay for your expenses while keeping your payment information.
EFT (Electronic Funds Transfers): It is the quickest means to pay for your expenses and get paid. Nevertheless, electronic transfers may sometimes be a bit costly. To receive the transfers, the person receiving the cash must provide their bank account number and routing number.
ACH (Automated Clearing House): ACHs can be an excellent alternative to personal checks as the money immediately goes to the payee’s bank account. It is a good and convenient way to get direct deposits.