Why do americans still use checks?

[alkemyst]

Sorry. I'm calling B.S.

We are going to need a little backup for this assertion.

MotionMan

I used to work in banks. It was VERY COMMON for people to write a ton of checks on say a Wednesday that would totally overdraft them relying on their paychecks to hit that Friday and knowing most businesses don't deposit checks right away.

We'd have a handful of usual suspects every month or so trying to get out of 10+ overdraft charges and having us refund the merchant the fee they would also charge them.

 

[alkemyst]

Your account number is printed clearly on the check.

Checks are good in that they are a legally binding payment. I use them for large purchases and paying individuals for work. My online banking bill pay simply prints out checks and mails them.

Exactly...the problem is anyone can take someone else's check and have their own copies printed.

There was a story I once read (never validated it) of some dude that pre-printed deposit slips at the ATM of some popular bank. By the time they caught it he had run away with a lot more money than walking into a bank with a gun.

 

[MotionMan]

Your account number is printed clearly on the check.

*I* know that. I was just explaining the difference in mind-set in the US. For some reason, handing over the account number on a check is OK, but telling it to someone is not.

I don't understanding it - it just is.

MotionMan

 

[Dirigible]

Why is it hard to send money to another account? Are US banks that incompettent?

I simply login into my account, click "new payment" type in bank account number (and bank code number) where it will go and confirm that order (code is sent by the bank to my cell phone). If i want to I can enter more things there like payment ID number or massage, but I dont have to.

Overall its simple and fast. It also dont cost me any money.

The USA still uses a hugely inefficient ACH system developed decades ago when we could do like the Euros do, and make the transfers quicker and cheaper. A number of banks don't want to put the effort to change the ACH system. The inefficiencies built into our ACH system result in a lot of various fees collected by banks (overcharge fees and the like that would be avoidable if transfers were real time and pretty much instant). Also, our crappy system creates demand for wire transfers (needed if you don't want to wait for our normal inefficient system), and wire transfers are a money maker for the banking industry.

Consumers in the USA are paying more for worse service. Hooray!

 

[alkemyst]

*I* know that. I was just explaining the difference in mind-set in the US. For some reason, handing over the account number on a check is OK, but telling it to someone is not.

I don't understanding it - it just is.

MotionMan

Because like above where you had no clue about kiting money with checks, most people have no clue what they actually do versus what they hear/think they are doing.

 

[who?]

Years ago a bank used the second page of the deposit slips that people filled out in the bank. A scammer took a bunch home, filled out the back pages with his account information and removed the carbon paper and put them back in the bank lobby so lots of people made their deposits into his account.

 

[rh71]

Years ago a bank used the second page of the deposit slips that people filled out in the bank. A scammer took a bunch home, filled out the back pages with his account information and removed the carbon paper and put them back in the bank lobby so lots of people made their deposits into his account.

Don't banks require your social when you open an account with them?

 

[alkemyst]

Don't banks require your social when you open an account with them?

Yes, and that is easily hacked.

 

[zerocool84]

Just for rent. Everything else is credit card but my rent has to be mailed in every month.

 

[Leyawiin]

Before I paid my house off I wrote a check for the mortgage. I also write one for expenses like property tax, insurance, maintenance/repairs, yard care etc... Almost anything related to the house I want to pay by check - even if there were an electronic/online option. I don't use them in retail establishments, but they definitely have their uses.

Consumers in the USA are paying more for worse service. Hooray!

Are we talking about TV and high speed internet now?

 

[Remobz]

People give you their bank account numbers?

That does not happen in the U.S.

MotionMan

I am not in the USA but we do this all the time for business transactions. Its quicker than someone sending us a check or cash by mail especially if they live some distance away. Many small business owners do not have CC or debit card machines and prefer hard cash in hand or checks.

Where I live only a fool would not travel with cash in wallet and dollar coins. Yes, its not safe but how can you pay a small time vendor or shop owner who only accepts cash in hand.

Also where I live the damn banks kill us with CC and debit card fees and other charges. In my day to day routines the MAJORITY of my transactions are paid with hard cash in hand.

 

[KlokWyze]

Stupid thread is stupid.

 

[raasco]

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

Sorry, but I find 10 years hard to believe.

 

[FelixDeCat]

Sorry, but I find 10 years hard to believe.

No, 10 years is quite believable. I still remember 2004.

*shudders*

 

[SlitheryDee]

I only use checks to pay my water bill. It's the only form of payment besides cash that they take. Takes me a long time to get through a book of checks.

It's convenient to make large payments via check though. All of my business' payments to vendors are checks. It does help me keep track of things when I'm reconciling the bank statement every month.

I don't know why an individual would want to use checks for day to day purchases though.