Smarter Living
This content includes information from experts in their field and is fact-checked to ensure accuracy.
Our team of editors strives to be objective, unbiased, and honest.
We are committed to bringing you researched, expert-driven content to help you make more informed decisions as it pertains to all aspects of your daily life. We constantly strive to provide you with the best information possible.
Sometimes you're better off busting out your checkbook.
By Zachary Mack
February 18, 2023
By Zachary Mack
February 18, 2023
Even if you have a checking account, your physical checkbook has likely been collecting dust for quite some time. Technology has made credit cards and debit cards the most likely alternative to paying in cash. In many cases, the only references to checks you may see are the signs posted by stores warning customers that they don't accept them. But while checks may be less commonly used than they once were, there are still a few instances in which they still come in handy. Read on to discover when you should still pay by check, according to financial experts.
READ THIS NEXT: Never Use Autopay for These 6 Bills, According to Financial Experts.
1
Paying your taxes
No matter what line of work you're in, you can count on having correspondence with the IRS at least once a year about how much you owe in taxes. But when it comes time to pay your dues, using a check has a surprising advantage over other seemingly convenient methods.
"As far as the IRS or any other taxing authority, the burden of proof of paying taxes is on the taxpayer," Jeffrey Stouffer, a finance expert and certified financial planner with JustAnswer, tells Best Life. "Clerical errors and data inputs to the wrong account may be the cause of receiving a request for proof. A copy of a check that has the tax description written in the memo section with an endorsem*nt on the back of the check by the tax agency will put an end to that question."
2
When you can get a discount (or avoid fees)
Paying with a card often feels like a convenient option, but it can come at a price. That's why experts say you should be on the lookout for opportunities where grabbing your checkbook can save you a little money.
"It can make sense to pay with a check in several circ*mstances—especially if it saves you in fees or you get a discount," says Robert Farrington, founder of The College Investor. "For example, many money transfer apps and services charge a fee—but if you pay with a check, you can avoid that."
This can be especially useful with one of your most significant monthly payments. "Some landlords will prefer you pay with a check for your rent to avoid processing fees, or you as the renter could avoid the fees as well," he says. "Also, smaller service businesses might prefer checks versus having to pay credit card processing fees. You might even get a discount if you ask!"
READ THIS NEXT:Never Use Your Debit Card for These 6 Purchases, According to Financial Experts.
3
Loan payments
For many people, setting up a recurring transfer for any large monthly payments you're making toward a loan can be an easy way to stay on schedule. However, you might want to consider cutting a check instead to ensure things don't get complicated down the line.
"Housing and loan payments will certainly be useful to have copies of cleared checks on hand for similar reasons to your taxes—especially if the lender is a private party," says Stouffer. "The irrefutable proof of payment will answer any questions they may have."
4
When paying some vendors online
If you've found a business that's willing to waive a fee or provide a discount for not using a credit card, it doesn't necessarily mean you need to pay cash. Thanks to a lesser-known service, you can easily make a payment without a swipe—even if you're not on-site with your checkbook.
"Most bank-based online bill pay systems will mail a paper check at no additional cost to vendors you need to pay," says Farrington. "You simply enter their information and the bank will mail them a check," adding this can be especially helpful when making some larger purchases such as appliances, construction materials, or a large down payment.
For more financial advice delivered straight to your inbox, sign up for our daily newsletter.
5
Legal settlements
Having a regular outgoing payment as part of a structured lawsuit can be a stress-inducing addition to your monthly budget. But experts say opting to pay with a check can help to relieve some of the potential confusion that can come with them.
"Unfortunately, some people encounter events and end up in court. Should a payment be required to settle such an event, a copy of an endorsed check with the settlement agreement will show that the file is closed and nothing more is to be done," Stouffer says.
"And with banking going electronic these days, sometimes only a line entry on a bank statement will contain enough information to trace the payee data of an image is not provided," he explains. "Keep these statements for the same purpose as taxes and loans: proof of payment."
Best Life offers the most up-to-date financial information from top experts and the latest news and research, but our content is not meant to be a substitute for professional guidance. When it comes to the money you're spending, saving, or investing, always consult your financial advisor directly.
Zachary Mack
Zach is a freelance writer specializing in beer, wine, food, spirits, and travel. He is based in Manhattan.Read more
Filed Under
Finance• Financial Advice• News
Read This Next
Never Use Your Debit Card for These 6 Purchases
You may want to opt for cash, credit card, or another method in certain circ*mstances.
February 7, 2023
7 Hidden Things That Affect Your Credit Score
You may not even realize these factors are affecting that all-important number.
January 1, 2023
Never Use Autopay for These 6 Bills
You might want to avoid the convenient feature in a few instances.
January 31, 2023
The Smart Man's Guide to Spotting Counterfeit Wine
That $2,000 bottle of Bourdeaux might be worth $20. Here’s how to be sure it’s the real thing.
April 13, 2017
The 5 Best Light-Bodied Red Wines for Extending Your Summer
Don't let September ruin a killer party.
August 25, 2017
17 Insanely Cool New Luxury Bicycles for Spring
Meet the bikes that cost more than a car.
March 31, 2017
Best Life Essentials
You deserve the best. Live life to the fullest with these ultimate essentials.
October 21, 2016
This Is the Safest Way to Store Meat
Don't let that filet set you up for food poisoning.
February 7, 2018
Here Are the 10 Wealthiest Cryptocurrency Millionaires Under 40
Including one guy who is only 24 years-old!
February 7, 2018
This Is the Safest Way to Clean Your Floors
Keep your floors clean and looking brand new with this easy tip.
February 8, 2018
Latest News
Style
11 Best Drugstore Foundation Options
They're just as good as high-end products.
Smarter Living
8 Newest "Must-Have" Dollar Tree Items
It's hard to believe these items are just $1.25.
Entertainment
Child Actor Says Mel Gibson "Screamed" at Her
Gaby Hoffmann starred in his directorial debut.
Smarter Living
5 Things You Should Stop Buying After Age 50
Financial experts weigh in.
Wellness
8 Supplements That Prevent Hangovers
Doctors recommend these before a night out.
Smarter Living
9 Must-Have Dinner Party Essentials
Planning makes perfect, etiquette experts say.
Read This Next
Never Use Your Debit Card for These 6 Purchases
You may want to opt for cash, credit card, or another method in certain circ*mstances.
February 7, 2023
7 Hidden Things That Affect Your Credit Score
You may not even realize these factors are affecting that all-important number.
January 1, 2023
Never Use Autopay for These 6 Bills
You might want to avoid the convenient feature in a few instances.
January 31, 2023
The Smart Man's Guide to Spotting Counterfeit Wine
That $2,000 bottle of Bourdeaux might be worth $20. Here’s how to be sure it’s the real thing.
April 13, 2017
The 5 Best Light-Bodied Red Wines for Extending Your Summer
Don't let September ruin a killer party.
August 25, 2017
17 Insanely Cool New Luxury Bicycles for Spring
Meet the bikes that cost more than a car.
March 31, 2017
Best Life Essentials
You deserve the best. Live life to the fullest with these ultimate essentials.
October 21, 2016
This Is the Safest Way to Store Meat
Don't let that filet set you up for food poisoning.
February 7, 2018
Here Are the 10 Wealthiest Cryptocurrency Millionaires Under 40
Including one guy who is only 24 years-old!
February 7, 2018
This Is the Safest Way to Clean Your Floors
Keep your floors clean and looking brand new with this easy tip.
February 8, 2018