Forget Paper Checks: Here's Why It's Time to Use Other Payment Methods

Ever stand in line at the grocery store behind someone paying with a paper check? It can be a frustrating experience -- especially since it seems like many people who still use them don't bother to carry a pen and must take a chance on the store cashier having one that works.

In these moments, I often wonder why people don't apply for a top-rated rewards credit card instead. But I digress.

Paper checks were the norm for non-cash payment methods for many decades, banks still offer them (sometimes for free), and check payments are often the lifeblood for nonprofit donations (in my old career, I deposited many, MANY paper checks from donors). But it's 2024, and it's time to leave paper checks behind (except in rare circumstances). Here's why you should switch to other payment methods.

Check fraud is rampant

This is the biggest reason to ease off using paper checks -- or quit them cold turkey. Paper checks are really easy to steal when mailed. Once criminals have your check, they can "wash" your ink off them and reuse them to drain your bank account.

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This problem is super common. According to a report by FinCEN (the U.S. Treasury's Financial Crimes Enforcement Network), over a six-month period last year, Bank Secrecy Act reports comprised more than $688 million in transactions related to mail theft check fraud.

Yes, there are ways to mitigate your risk -- such as by using the right kind of pen that's difficult to wash off a written check (indelible black gel ink is recommended). You also shouldn't mail checks from your home -- and even using a USPS mailbox isn't advisable due to rampant theft. Instead, take your checks directly to the post office to mail them -- or just use another payment method.

Other payment methods are more convenient -- and rewarding

Remember my mention of rewards credit cards above? If you use one of these at the checkout, not only will you avoid the wrath of your fellow shoppers -- but you'll earn cash back or points on your bread, milk, and toilet paper.

I use a credit card that pays me 6% cash back at supermarkets -- and you can, too! Check out our favorite credit cards for gas and groceries and enjoy cash back on two of the bigger expenses in many Americans' budgets.

But what if you're not comfortable using credit cards? I get it -- a lot of people struggle with credit card debt, and having access to a line of credit you may not be able to pay back in a timely fashion can be tempting. You still have options.

The trusty debit card is also a convenient choice. While it doesn't come with as robust of fraud protections as credit cards, it's still a quick way to pay for purchases. Rewards debit cards aren't unheard of, either -- research the best checking accounts, and you'll find several that pay cash back or rewards points on debit card purchases.

And if you're using paper checks to pay your monthly bills, investigate your bill pay options through your bank. I use my bank's online bill pay portal to pay my dental insurance every month -- it couldn't be easier. I fill in the amount and pick the date I want it delivered by, and my bank cuts the check for me.

When should you use paper checks?

Honestly, there aren't many situations where a paper check is a good idea, but here are a few.

When paying with plastic costs extra

Sometimes you'll be given the option to pay for something with a credit or debit card, but if you do, you'll be charged extra for the processing fee. This isn't great, but it's understandable -- credit processing fees cost between 1.15% to 3.15% of the transaction for merchants.

So if it will cost you extra to pay with plastic, a check is a solid option. I still don't recommend mailing it, though -- unless you mail it directly from the post office.

When you're paying someone face to face

You already know that mailing a check can be risky. But if you're writing a check to hand to someone directly, you're cutting that risk out of the equation.

When I was a renter, I needed an on-street parking pass. I paid for that via check because my other options were cash and money order. Getting a money order would take an extra step, and I don't tend to keep a lot of cash on hand.

The other time I recently paid with a check was when I got a home warranty through my real estate agent's office after I closed on my mortgage. I didn't have to mail the check, and there was no option to pay with a credit or debit card.

Ultimately, it's time to phase out paper checks. Other payment methods will save you time, reduce your risk of fraud, and maybe even earn you rewards. Consider your options and make the switch today.