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Wandering over at the Consumerist today, there's an article on Certigy deciding if K-Mart will accept your check.
Now, while the article itself was pretty interesting, the TRUELY interesting part was the discussion in the comments about writing checks altogether. Here's a small selection of some of the more interesting comments I found.
I'm sorry, there's really only one reason to use a check, and that's because you don't actually have the money in your account. Otherwise, you'd save yourself the time and just use your debit/credit card.
Yeah, that's the ONLY reason.
When you take a minute to fill out the check, then I or one of my employees has to verify all the info on it, then run it through the check draft machine, it totals up to at least two minutes. Swiping a card NEVER takes that long, sorry.
Boo hoo, cry me a freakin' river. THAT'S YOUR JOB, deal with it.
and, of course, my all time favorite.
HOLY CRAP it's the year 2008 and people are still using checks at retail stores! Did you ride up to the K-mart in your horse & carriage?
In Defense of the Lowly Check
Now, from reading so far, you might think that I'm a fan of the venerable check. Not true. There are a multitude of problems with the paper check nowadays, but that's not a reason for all the hatred. Many of the comments sniped at the "time it takes stupid people to figure out how to write the checks". This is a petty generalization along the lines of "Women are bad drivers" or "Poor people just don't work hard enough". Some 'privileged' individuals taking a pot-shot at a group with only anecdotal evidence at best.
Get a life!
Being annoyed at someone in front of you in line, taking up your precious time is a sign that you either don't have enough planning skills to deal with delays to your day, or are so far into the A personality scale that they have to make up a NEW scale just to fit you in.
Don't Hate the Playa, Hate the Game
Whew, ok, now with the rant out of the way, let's talk a bit about why checks should start going the way of the dinosaur.
Security - The biggest issue with checks is security. They have your bank account, routing number, name, address, and in some cases, even your social security number or driver's license number on them. If they don't, they will have by the end of the sale, as almost EVERY merchant asks you for this information every time you use one of these. As the check physically passes through the hands of various checkers, tellers, accountants, mail handlers, etc. that information is available for the unscrupulous to copy down and use in identity theft.
Fraud - Having your account and routing number available also allows others to fraudulently write checks with your information on them. I recall an instance where my bank called me in to verify that a check they had received was NOT from me (even though the check itself had someone else's name, address, and phone number on it, it had MY account number and routing information on it). Those same "print your own checks at home" kits they used to sell a few years ago can just as easily make checks for SOMEONE ELSE'S ACCOUNT TOO.
Convenience - Admittedly, without going to the asinine extreme that some of the comments went to, there is a delay in taking checks at various stores. This wait can be extended by verifications, data entry, and other things that the teller has to do to accept the check. It's like most businesses don't WANT to make it easy to use checks any more. (They probably don't, but they might want to be a bit less blatant about it).
If this isn't enough to make you think about going paperless, then by all means, continue using checks. Personally, I'm not in THAT big of a hurry to get anywhere that a couple of extra minutes is going to knock me off my stride.
Bling-bling Alternatives
Since checks are becoming passe', the main contender for its replacement is the Debit Card. Most banks now give you a debit card when you open a checking account, and they usually have the MasterCard or Visa logo, so are taken almost everywhere. (Key word: ALMOST).
Debit cards still have their own drawbacks too.
- Not Taken Everywhere - If they take credit cards, they'll take debit cards, but if they don't accept credit cards, it might be nice to have a checkbook or some cash on hand. Never know when you're going to be stranded REALLY far outside of civilization and need that gallon or two of gas before that strange hitchhiker makes his move.
- Tend to Spend More - As with credit cards, debit card users tend to spend more without thinking about it. Running a debit card through a reader for a $4.95 Starbucks coffee is easier than whipping out the checkbook and paying for it. The former doesn't take any thought, while the latter may make you think twice, especially if you only have 1-2 checks left in the book.
- Different Paper Trail - With checks, you have proof of purchase, and you can easily remember what you bought where/ With Debit cards, you get this little print-out which usually ends up as pocket fluff after you forget to take it out of the pocket before wash day.
Can't We All Just Get Along?
Checks still have their place in society, as does cash, credit cards, and other payment methods. We've gotten away from carrying around pigs and cattle as trade items, and eventually the check (and maybe even cash) will gradually die away as less and less people use them. Until that time, maybe you should wonder if you're the one with the problem the next time you get annoyed at someone writing a check at the check-out line.
Do YOU still use checks? And if so, what do you use them for? Leave us a message and let us know.
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April 24th, 2008 at 8:10 am
Sorry, I'm out on the beginning of this post. I'm 100% against the use of checks in today's retail world. If you don't like credit / debit cards ( understood ) use greenbacks. I despise people who are so inconsiderate of other people's time.
Some folks work very long hours ( I work about 70 hours per week these days - much less than I used to, but still far more than most ), and don't have very much free time at all. To folks like us, wasting even 2 or 3 minutes longer than we have to is a lot. We'd much rather make our purchases quickly and move on with our lives. Using an archaic, outdated method of payment is just inconsiderate. Just because *you* ( not you specifically, but the check writer ) have all the time in the world, does not mean everyone behind you does.
To me, using a check is no better than paying with a jar full of loose change. Completely rude and inconsiderate.
Llama Money's last blog post..Budget Busters
April 24th, 2008 at 8:27 am
Inconsideration goes both ways. Why should they have to stop using a still-in-use method of payment? If it's truly a problem, the stores should stop accepting checks as payment, or you could shop at credit-card-accepted-only businesses.
Lots of fast-food places, and many smaller stores have stopped accepting checks, the remaining places should be fair game for them. If you don't like it, you can show your displeasure by talking to the store manager and requesting that they stop accepting checks.
If someone were in front of you using food stamps or WIC, would you still feel that they are 'wasting your time'? Food stamps and WIC certificates take about as long as checks, shouldn't they also be phased out?
And what's next? RFID-enabled credit cards are becoming more common, so you swipe-and-signers are holding up those RFID swipe and leave people. Their time is precious too.
I'd think that the REAL problem is the 70+ hr/week job, not the 2-3 minutes at the store.
Randall's last blog post..Are You a Check Snob? People Who Hate Check Writers
April 24th, 2008 at 9:07 am
Although I don't like them much, here are a few other points in their defense:
1. Paying rent. Yes my apartment complex does accept credit cards, however there's this ridiculous "processing fee" that's even more than the 3% cash back I'd be getting. How the heck can you have a fixed rate fee of $25? That's insane
2. Debit card charging. This has happened to me from time to time at gas stations. If you ever have to get gas for two different cars, remember each swipe allocates a certain amount on the card (mine's $75 I think). Doesn't matter if you're putting $10 in each car, my car is going to pre-charged $150 for the two swipes. These take about 3 days to clear. Best case scenario, the 2nd charge won't go through. Worst: you have a check relying on that $200 in your account that's going to bounce. I've even experienced the same thing with my Credit card, though I couldn't explain it. Because a lot of stolen CCs are "tested" out at gas stations some CC companies will give you a nice alert on multiple swipes. Some (like mine) freeze the whole damn card, without even a courtesy phone call.
Baz L's last blog post..Stupid Texas Weather
April 24th, 2008 at 1:49 pm
I don't have anything against checks.
I accept them as payment for my business gladly.
I don't like giving away part of my income via merchant fees when someone uses the CC to pay me. But I still accept them via paypal only. That makes it a bit more difficult.
I'm finding that a few of the businesses I deal with, like my mechanic, prefer checks or cash for the same reason.
Blackneto's last blog post..My contribution to Earth Day
April 24th, 2008 at 1:53 pm
I forgot to add that since when went to the envelope method we really haven't used checks for anything.
the school requires them for school lunch tickets.
we pay people who come to do work on the house via check.
And we write one for our envelopes every other week.
Blackneto's last blog post..My contribution to Earth Day
April 24th, 2008 at 3:26 pm
I agree with you, Randall, about writing checks not being that horrible. We're so used to an extremely fast pace in the US. It worries me sometimes. I'd like my life to slow down as it is, and I only work 36 hours a week! Aren't people burned out enough already? Do we really need to make everything even faster?
That said, I write very few checks. Once per paycheck, I write a check out for the offering plate at church. That's usually it, I only occasionally come across other situations where I need to write one out. I love my credit card with it's rewards
Becky@FamilyandFinances's last blog post..Milk and Miscellaneous
April 24th, 2008 at 3:41 pm
I hate checks too but I use them when I don't have money in my account but expect there to be money in my account by the time the check gets deposited on the payee's end. I probably write a check once every 4 months, if that.
April 24th, 2008 at 5:19 pm
I see a lot of checks at the library because we don't take debit/credit. They're too expensive for the county to consider for something like fines. So whenever people run up mammoth ones, they often choose to pay with checks instead of cash.
We also use checks to pay the rent. But I prefer not to use them in stores for time/convenience reasons.
April 24th, 2008 at 5:40 pm
You know what annoys me MUCH MUCH more than someone writing out a check? The person who has to try 3-5 different credit cards before they figure out which one has enough room on it to allow the charge to happen!! Waiting for someone to write a check is much quicker than the ones who giggle nervously as they say "Here, try this card ... Ooops, how about this card...?"
Debt Free Revolution's last blog post..How to Pay for College?
April 24th, 2008 at 5:53 pm
Merchants are switching to Check 21, which will electronically process your check instantly.
http://www.federalreserve.gov/paymentsystems/truncation/faqs.htm
April 24th, 2008 at 7:59 pm
While I don't mind people who use checks, I do take exception to people who are very inconsiderate when using checks. The most common example is when you are at the grocery store and the person in front of you waits until all their groceries are bagged and the cashier gives the total before they even reach into their pocket or purse to pull out the checkbook.
Seriously, if you know you'll be using a check, use the 2 or 3 minutes while the cashier is scanning your items to at least pull the checkbook out of your purse and begin filling out the name of the store and sign it so that when you are given the total, you can easily just fill that info in.
But the worst offense, DON'T sit there and then try to balance your checkbook while standing at the checkout. Just like in the game of golf, the proper etiquette is to move off the green and to the next hole before stopping to fill in your scorecard. Same thing with your checkbook. Do your transaction, then move off to the side and balance your last transaction so that the next person can begin checking out.
I still use checks in some situations, and I certainly know there are some uses for them. But to people who insist on using them in public places where there are lines, just use common sense. Using a check isn't a lengthy process unless you make it one.
Jeremy's last blog post..How to Eliminate Mutual Fund Deadbeats from your Portfolio