Why do americans still use checks?

[Rebel44]

I just dont understand that - why use check if I can either pay with debit/credit card or send money via wire transfer. Neither option cost me any money and its faster.

 

[highland145]

Because it works, maybe?

 

[gorcorps]

Most americans don't... where are you getting your information?

 

[Uppsala9496]

Because it works, maybe?

This.
And they are accepted. Once financial institutions decide to not allow checks is when they will stop being used. Until then...

 

[HOSED]

I agree, but here in the US most banks charge a fee for wire transfer (mine is $35.00 US). Also if I wish to pay my state taxes to the wonderful state of Pennsylvania I also have to pay a fee for Credit/debit card.
I use CC for everything else just to get the cash back (last year I received ~$250.00 back).

 

[highland145]

This.
And they are accepted. Once financial institutions decide to not allow checks is when they will stop being used. Until then...

And some places like the city/county offices charge a use fee if you want to run your card. 2.5% at the property tax office.

 

[Capt Caveman]

Transaction costs.

I'm going to see my physical therapist today. I'm going to pay her via check. I could use my FSA debit card but she incurs a transaction fee for me using it. A check saves her that fee.

I also renewed my dog licenses this week. I used a check b/c my city charges you the transaction fee that is incurred if I decide to use a debit or credit card.

 

[Mai72]

Old people still use checks. I haven't used a check in 5 years.

 

[Insomniator]

For rent and old people.

 

[Uppsala9496]

I use 2 checks a month. ONe for electric/water/garbage to the town since I don't trust them to have access to my money and one for rent.
If there are any PTA related things for my kid I also write a check since that is all they take (they don't want cash). Oh and I paid my accountant via check last month.
11 checks written so far this year.

 

[nageov3t]

rent

also, paying service people (eg: plumber, electrician) who may not have the means to take credit cards but a transaction for which I'd still like a paper trail.

in the US at least, free wire transfers seem rare. I've got them through my bank, but only with linked accounts which required a lot of paperwork and signatures from both account holders (eg: not something I'm going to go through just to pay the handyman)

 

[smitbret]

Plus, how dow you think we pay the credit card bill for all of the other transactions?

 

[purbeast0]

i haven't used a check in like 5 years. i don't think "most" americans use checks at all. i can't remember the last time i actually saw someone write a check at the store either.

 

[Captante]

For rent

This.

(I still have over half of my "starter" checks from like 8 years ago)

 

[CPA]

Believe it or not, the only way to pay one of my mortgages is by check. This is not a small time mortgage company either.

Plus, there are many others where checks are required, preferred or make sense .. My kids schools, girl scout cookies, charitable donations, dmv, etc.

 

[Schfifty Five]

I just dont understand that - why use check if I can either pay with debit/credit card or send money via wire transfer. Neither option cost me any money and its faster.

Currently at my apartment, if I pay by credit card or debit card, there's an additional fee (like 3% or so) tacked on. Very dumb. Thus I still pay by check.

 

[Blackjack200]

i haven't used a check in like 5 years. i don't think "most" americans use checks at all. i can't remember the last time i actually saw someone write a check at the store either.

I probably write over a hundred checks per year. Property taxes, mortgage payments, insurance premiums, car payment, medical/dental bills, sewer/water bills, rent, utilities, contractors, I send my dad a check every month for my share of the cell phone plan.

I used to never write checks but I had a dispute with a gym once and I called my bank and told them to cancel my automatic debits and they said they couldn't, and that I would have to resolve the dispute the merchant. I now feel that checks have much better consumer protection. Problem? Call the bank and stop payment on the check. Done.

Don't get me wrong, I still use my debit card for lots of stuff, but whenever a bill comes in the mail I have a roll of stamps and a checkbook at my desk. I fill in the fields on the stub, write the check, and put the envelope together and put it right back in the mailbox. My gf used to make fun of me for this because she worked for a bank and did everything electronically, but I haven't missed a bill in years.

 

[Blackjack200]

Currently at my apartment, if I pay by credit card or debit card, there's an additional fee (like 3% or so) tacked on. Very dumb. Thus I still pay by check.

Why is that dumb? That's what Visa/Mastercard is charging the merchant. I think it's a royal PITA that instead of just getting a straight discount for paying by cash/check, I need to do research and figure out which CC will give the best "rewards" to not get screwed.

I personally believe that regulations should require any transaction fees to be passed directly to the consumer. You'd see those fees go down pretty goddamn quick. Probably to zero.

 

[nageov3t]

I probably write over a hundred checks per year. Property taxes, mortgage payments, insurance premiums, car payment, medical/dental bills, sewer/water bills, rent, utilities, contractors, I send my dad a check every month for my share of the cell phone plan.

I used to never write checks but I had a dispute with a gym once and I called my bank and told them to cancel my automatic debits and they said they couldn't, and that I would have to resolve the dispute the merchant. I now feel that checks have much better consumer protection. Problem? Call the bank and stop payment on the check. Done.

Don't get me wrong, I still use my debit card for lots of stuff, but whenever a bill comes in the mail I have a roll of stamps and a checkbook at my desk. I fill in the fields on the stub, write the check, and put the envelope together and put it right back in the mailbox. My gf used to make fun of me for this because she worked for a bank and did everything electronically, but I haven't missed a bill in years.

debit cards are the absolute worst way to pay anything, imo.

credit cards provide the best dispute protection, though I'd agree that checks > debit in that regard if you can't use a real credit card for whatever reason.

 

[Blackjack200]

debit cards are the absolute worst way to pay anything, imo.

credit cards provide the best dispute protection, though I'd agree that checks > debit in that regard if you can't use a real credit card for whatever reason.

So if I have an automatic charge on my credit card, I can cancel it through the financial instituion rather than the merchant? Are you sure about that?

 

[Scarpozzi]

My water utility office is years behind. They use a service to accept credit cards or bank drafts, but charge a $2.50 fee. They are paying a middle man to offer the service and since it's been working, they haven't shopped around for a cheaper solution....nor have they realized that if they make it cheap enough, they can eliminate a few jobs and totally automate payments through outsourcing.

Anyhow, aside from that, checks are important when you're making payments to companies. I used to pay mortgage taxes and insurance, but got stuck doing escrow last time we refinanced. I've taken a lot of deliveries and made payments in the past year in my driveway.....concrete block, concrete, gravel, pest control people, tree cutters, etc.... It was nice being able to pay someone without the risk of tendering large amounts of cash or worry if they could accept credit.

 

[CPA]

Oh yeah, one other. I just paid for a new roof. Contractor wouldn't take anything other than cash or check.

 

[Jimzz]

Most Americans still uses checks not because they want to but because of fees or its the only option.

I use electronic payments (CC or transfer) when allowed. But I still have a check book and write maybe 1 to 2 checks a month.

 

[Newell Steamer]

I do.

My landlord doesn't accept electronic payments - and, that is my biggest expense.

The other 3 are:
- gas
- cable
- credit card

I could move to e-payments,.. but, I just never got around to it,..

 

[KeithTalent]

It is very odd. Every time I go down to the United States of America I see people writing cheques for groceries and such. I've not seen that up here in probably more than ten years.

KT