Today, most financial transactions seem to be going digital, but that isn’t the case with checks. Many people wouldn’t relate why they should leave the digital form and opt for checks.
Millions of people have now changed and focus most on the emerging technological trends to make payments. Some have gone for online transactions while others hold dear unto credit cards. But the truth of the matter is that checks are still relevant and may not go away anytime soon.
You Can Postpone Withdrawal
Other forms of money transfers do not offer you the ability to determine how long you can hold the money back in your account. Once you initiate a withdrawal transaction, your account gets debited immediately while the recipient account gets credited. In this case, there’s nothing you can do once the money is gone. This may harm your business, especially if you don’t have a cash reserve.
However, that’s not the case when using checks. They take a few days to process, and even if you don’t have money in the account, you can still write a post-dated check and let the recipient get the money on the expected date without emptying your account reserves.
You Can Cancel Check Transactions
There is no reversal opportunity once you make payments using other methods. Once the money’s gone to the recipient, you have to count it off. It would prove challenging to make reversals, especially when you realize that you made a mistake.
But with checks, you can contact the bank and request them to hold the transaction for various reasons. Imagine that your company orders certain products with specific descriptions, and then you go ahead and write a check knowing that the orders will come as expected. However, once you receive the goods, you discover that they are damaged or poor quality. It’s easy to return the products to the vendor and cancel the check transaction.
Business Payment Preferences
Some businesses have strict payment policies and don’t accept some forms of payment, such as credit debit cards. Some of them are government offices, real estate agents, and community groups, among many others.
It’s also good to note that most people don’t use the internet. So, there’s a probability that they don’t have other means of making transactions other than using checks. Additionally, you’re likely to come across old school retail stores that only accept checks.
Make Payments During Power Outages
When processing debit and credit card transactions, the stores need electricity to enable the processing equipment to function. Without which no transactions can take place.
In the times when there’s an utility outage, you can carry out the transaction with a check. Even if you opt for a cash transaction by first withdrawing money from the ATM before making purchases, it’ll not bear any fruit because there needs to be electricity to withdraw the money from the ATM. You’ll have no other option than to use a check to buy what you want.
Some Retail Shops Have Strict Purchasing Terms
Some businesses have minimal transaction requirements when using credit cards. When making purchases, you may need to add extra items to your list to meet the minimum order required. There is also a fee to pay on the purchases. The fee can hurt your budget, especially when making small purchases.
It gets more manageable if you have an alternative check payment method. A check doesn’t attract a fee, and you don’t get limited when making purchases.
All check transactions have permanent records at the bank. You can download the check images and view the transaction records, especially when you have a legal dispute. The records give you a proof of the date, time, and the person that carried out the transaction.
Checks continue to remain a relevant form of payment for some people. They’ve been in use for many years, and to some, checks remain a way of life. No matter the type of technological innovations that emerge, with new trends every day, checks will still stand for years to come.