Quick take: The pros and cons of writing checks (2024)

FAQs

Quick take: The pros and cons of writing checks? ›

When you write a check, you're providing a wealth of personal information, including your name, address, bank account number, and signature. This sensitive data can be exploited by fraudsters for identity theft or other malicious purposes, putting your financial security at risk.

When you write a check, you're providing a wealth of personal information, including your name, address, bank account number, and signature. This sensitive data can be exploited by fraudsters for identity theft or other malicious purposes, putting your financial security at risk.

Checks Are Easily Stolen and Altered

Checks can be intercepted from the mail and the victim may not realize there is fraud until it's too late, causing financial losses and even increasing the chances of identity theft. One way to protect against check fraud is by using Positive Pay.

Checks can be used to make bill payments, as gifts, or to transfer sums between two people or entities. They are generally seen as a more secure way of transferring money than cash, especially with large sums.

While most people have transitioned away from check writing on a day-to-day basis, they are still one of the most commonly used forms of payment for large purchases. This can include things like childcare or tuition payments, tax payments, and debt payoffs.

It is more convenient and safer to carry around than cash. It is a negotiable instrument that can be endorsed in favour of a third party. They can be easily traced if lost.

A personal check is a slip of paper that's processed from your checking account. On the check, you write an amount of money and the name of the recipient who will receive that money. The check also contains information like the writer's checking account number, the bank's routing number and the name of the bank.

Checks are costly and every cent spent on them is money that's being taken out of your business. They're also slow. Mailing checks can cause a lot of issues: they clear 5-10 business days from when they are sent out, they can get lost, and hold-ups are common.

What is the safest form of check payment? ›

Cashier's checks and certified checks are both official checks issued by a bank. Both are easy to get, relatively inexpensive and considered more secure and less susceptible to fraud than personal checks.

The risk goes up if you don't specify a recipient on the check — if you write a check to “cash,” anyone who gets a hold of it could cash it. If you need cash, it's safer to use your debit card at an ATM or visit your bank and write a check out to yourself while you're there, Alderete says.

Checks are not dead. In fact, according to a recent survey by GOBankingRates, 17% of Americans are still writing checks on a monthly basis — and 15% send a few checks every month.

The U.S. Postal Service is vulnerable, and thieves who can access your checks can change the amount and ferret those funds right out of your bank account. And then it can take weeks to get the funds back.

Paper checks accounted for just 3.8% of consumer transactions in 2022, according to data from the Federal Reserve Bank of Atlanta. However, there are still some situations when you may want to use paper checks.

What is something you must avoid when writing a check? Several things should be avoided, including leaving spaces, using unclear handwriting, or writing contradictory amounts. Always ensure the written and numerical amounts match to prevent any potential fraud or confusion during processing.

This crime could result in misdemeanor or felony penalties. A conviction on one's criminal record will have long-term consequences. Simply having any convictions could make it more difficult to find employment and could limit your housing opportunities, regardless of what type of crime(s) are listed on your record.