While we live in a world where payments can be made electronically, paper checks are still needed. They remain relevant as they offer a record of documents, reduce risk, and help meet a need for both individuals and businesses. They are convenient to use and allow you to keep a good track of all your transactions.

Paper trail

With paper checks, there is a trail to make it easier to find out what was spent and where it was cashed. That can be important when it comes to having records to verify that you made a payment. A photocopy of the check before you send it, as well as one from the bank when you receive your statement showing that it was cashed, can help you keep very good records.

For a business, it shows a level of professionalism. Paper checks often need the approval of more than one person, so there is an internal balance and control system in place for the company. Being able to send a check for accounts payable is important so that you can build good business credit and stay on top of your cash flow. It also makes reconciling the books much easier.

Reduced risk

Criminals can get away with forging checks, but it is much more difficult than for them to obtain credit or debit card information. When they forge a check, they often run the risk of being caught due to signing, where they try to cash it and be seen on surveillance video cameras. With your credit or debit card, they can cause great damage online and remain safe under a blanket of darkness.

Flexibility

Not all companies are set up to receive your payment electronically. With paper checks, you can pay what you need and not have to carry cash to do so. Also, you are not left out in the cold because the entity cannot use other sources of payment to complete the transaction. Sometimes you may need to write a check to pay something, even though you know the funds will not be available in that account for another day or two.

That kind of practice is not encouraged, but it does happen. For example, you may have a deposit on Friday, but you know it won’t show up in your account until the following Monday. However, you have bills to pay or you need to do some shopping over the weekend. With this type of scenario, you can write a check and before it reaches your bank, the funds will be available.

check

When paying for services, it is a good idea to have a paper record to go to. If you pay in cash, there is no proof that you actually paid for those services. This can become a difficult situation if you are not careful. For example, you may need to pay a deposit to rent a function room or even to rent a house. You may be painting your house and they want a percentage of the funds up front. Writing a check shows that you paid those costs in case a problem arises. If the check was cashed, that may be your evidence in a court of law.

Save on fees

The amount of money they charge you when you go to the ATM is ridiculous! It may be only a few dollars at a time, but how much is it each month or annually? Find a checking account provider with no service fees. You can also avoid higher fees, such as sending a cashier’s check or money order when you can use your own account for free.

Stop payment

When you pay for something in cash or electronically, there is no way to stop the payment. You are at the mercy of the recipient to return that money to you, and that can become a time-consuming hassle. With a paper check, you can contact your bank and ask them to stop payment. While there is often a fee that is applied to this service, it will be less than the value of that check.

You may have had every intention of allowing that check to be cashed, but then something comes up that completely changes the situation. You can go directly to your banking institution and complete the stop payment process. This avoids problems when trying to work it out with the person who has that check. Even if they try to present it to the bank, it will be rejected.

Expense record

Hopefully, you have a large budget for your household expenses. However, you may be wondering where so much of your money is going! How much do you spend eating out or shopping? Where can you remove the extras to add more savings? When you use paper checks, you can better keep track of all your expenses. You will be able to accurately track where your money goes each month.

Proof of payment

If you are contacted in person to inform you that you did not pay an invoice or that your company has outstanding accounts payable, the cashed check will be registered with your bank. They can provide you with a copy to show that creditor. It will verify that the account was paid, when it was collected, and even who signed to collect it.