5 Times You Should Still Pay by Check, According to Financial Experts (2024)

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

5 Times You Should Still Pay by Check, According to Financial Experts (3)

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

5 Times You Should Still Pay by Check, According to Financial Experts (4)

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)

5 Times You Should Still Pay by Check, According to Financial Experts (5)

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.

5 Times You Should Still Pay by Check, According to Financial Experts (6)

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

5 Times You Should Still Pay by Check, According to Financial Experts (7)

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

5 Times You Should Still Pay by Check, According to Financial Experts (8)

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

FinanceFinancial AdviceNews

Read This Next

  • 5 Times You Should Still Pay by Check, According to Financial Experts (9)

    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

  • 5 Times You Should Still Pay by Check, According to Financial Experts (10)

    7 Hidden Things That Affect Your Credit Score

    You may not even realize these factors are affecting that all-important number.

    January 1, 2023

  • 5 Times You Should Still Pay by Check, According to Financial Experts (11)

    Never Use Autopay for These 6 Bills

    You might want to avoid the convenient feature in a few instances.

    January 31, 2023

  • 5 Times You Should Still Pay by Check, According to Financial Experts (12)

    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

  • 5 Times You Should Still Pay by Check, According to Financial Experts (13)

    The 5 Best Light-Bodied Red Wines for Extending Your Summer

    Don't let September ruin a killer party.

    August 25, 2017

  • 5 Times You Should Still Pay by Check, According to Financial Experts (14)

    17 Insanely Cool New Luxury Bicycles for Spring

    Meet the bikes that cost more than a car.

    March 31, 2017

  • 5 Times You Should Still Pay by Check, According to Financial Experts (15)

    Best Life Essentials

    You deserve the best. Live life to the fullest with these ultimate essentials.

    October 21, 2016

  • 5 Times You Should Still Pay by Check, According to Financial Experts (16)

    This Is the Safest Way to Store Meat

    Don't let that filet set you up for food poisoning.

    February 7, 2018

  • 5 Times You Should Still Pay by Check, According to Financial Experts (17)

    Here Are the 10 Wealthiest Cryptocurrency Millionaires Under 40

    Including one guy who is only 24 years-old!

    February 7, 2018

  • 5 Times You Should Still Pay by Check, According to Financial Experts (18)

    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

  • 5 Times You Should Still Pay by Check, According to Financial Experts (19)

    5 Times You Should Still Pay by Check, According to Financial Experts (20)

    Style

    11 Best Drugstore Foundation Options

    They're just as good as high-end products.

  • 5 Times You Should Still Pay by Check, According to Financial Experts (21)

    5 Times You Should Still Pay by Check, According to Financial Experts (22)

    Smarter Living

    8 Newest "Must-Have" Dollar Tree Items

    It's hard to believe these items are just $1.25.

  • 5 Times You Should Still Pay by Check, According to Financial Experts (23)

    5 Times You Should Still Pay by Check, According to Financial Experts (24)

    Entertainment

    Child Actor Says Mel Gibson "Screamed" at Her

    Gaby Hoffmann starred in his directorial debut.

  • 5 Times You Should Still Pay by Check, According to Financial Experts (25)

    5 Times You Should Still Pay by Check, According to Financial Experts (26)

    Smarter Living

    5 Things You Should Stop Buying After Age 50

    Financial experts weigh in.

  • 5 Times You Should Still Pay by Check, According to Financial Experts (27)

    5 Times You Should Still Pay by Check, According to Financial Experts (28)

    Wellness

    8 Supplements That Prevent Hangovers

    Doctors recommend these before a night out.

  • 5 Times You Should Still Pay by Check, According to Financial Experts (29)

    5 Times You Should Still Pay by Check, According to Financial Experts (30)

    Smarter Living

    9 Must-Have Dinner Party Essentials

    Planning makes perfect, etiquette experts say.

Read This Next

  • 5 Times You Should Still Pay by Check, According to Financial Experts (31)

    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

  • 5 Times You Should Still Pay by Check, According to Financial Experts (32)

    7 Hidden Things That Affect Your Credit Score

    You may not even realize these factors are affecting that all-important number.

    January 1, 2023

  • 5 Times You Should Still Pay by Check, According to Financial Experts (33)

    Never Use Autopay for These 6 Bills

    You might want to avoid the convenient feature in a few instances.

    January 31, 2023

  • 5 Times You Should Still Pay by Check, According to Financial Experts (34)

    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

  • 5 Times You Should Still Pay by Check, According to Financial Experts (35)

    The 5 Best Light-Bodied Red Wines for Extending Your Summer

    Don't let September ruin a killer party.

    August 25, 2017

  • 5 Times You Should Still Pay by Check, According to Financial Experts (36)

    17 Insanely Cool New Luxury Bicycles for Spring

    Meet the bikes that cost more than a car.

    March 31, 2017

  • 5 Times You Should Still Pay by Check, According to Financial Experts (37)

    Best Life Essentials

    You deserve the best. Live life to the fullest with these ultimate essentials.

    October 21, 2016

  • 5 Times You Should Still Pay by Check, According to Financial Experts (38)

    This Is the Safest Way to Store Meat

    Don't let that filet set you up for food poisoning.

    February 7, 2018

  • 5 Times You Should Still Pay by Check, According to Financial Experts (39)

    Here Are the 10 Wealthiest Cryptocurrency Millionaires Under 40

    Including one guy who is only 24 years-old!

    February 7, 2018

  • 5 Times You Should Still Pay by Check, According to Financial Experts (40)

    This Is the Safest Way to Clean Your Floors

    Keep your floors clean and looking brand new with this easy tip.

    February 8, 2018

5 Times You Should Still Pay by Check, According to Financial Experts (2024)

FAQs

How often should you check your finances? ›

In the often hectic day-to-day, it can be easy to let the pulse of our finances go unchecked. Understand why it's worth thoroughly examining your finances at least once a year and with every major life change.

Why do people pay with checks? ›

Some customers prefer to pay by check owing to familiarity, privacy concerns, or a lack of other payment options.

What is a check in financial literacy? ›

A check is a written, dated, and signed draft that directs a bank to pay a specific sum of money to the bearer. The person or entity writing the check is known as the payor or drawer, while the person to whom the check is written is the payee.

What is the 50/30/20 rule in budgeting? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

How often should you check in with your financial advisor? ›

You should meet with your advisor at least once a year to reassess basics like budget, taxes and investment performance. This is the time to discuss whether you feel you are on the right track, and if there is something you could be doing better to increase your net worth in the coming 12 months.

Is it better to pay by check? ›

Large Purchases

Certain transactions also require the use of checks. For example, when purchasing a high-value item such as a car or a house, the seller may prefer a check as a form of payment. This is because checks provide a sense of security and verification that cash transactions may lack.

Is it safer to pay by check or credit card? ›

By and large, credit cards are easily the most secure and safe payment method to use when you shop online. Credit cards use online security features like encryption and fraud monitoring to keep your accounts and personal information safe.

Are checks safer than cash? ›

Security experts don't recommend paper checks. There are a lot of reasons for concern. While checks are one of the oldest forms of payment ‒ other than cash and precious metals (such as gold and silver), the latest transaction options are more secure.

Are checks being phased out? ›

Surprisingly, though, 50 percent of businesses still use paper checks as their primary method of payment. According to the Federal Reserve Bank of Philadelphia, paper checks are predicted to become obsolete by 2026. Given the advantages of electronic bill payment, why are paper checks still so common for businesses?

How many people still pay with checks? ›

While checks are used less frequently than other payment methods, some people still rely on them. Checks made up 4% of U.S. transactions in 2022.

Is cash dying out? ›

Overview. Cash use has been declining for years, but cash isn't close to going away. In 2022, there were a staggering 70 billion cash transactions, making it the third-most-common payment method.

Do banks go by the written amount on a check? ›

Shouldn't the bank have paid according to the numeric amount? Legally, words overrule numbers. According to state laws, if a check contains contradictory terms, words prevail over numbers. In the same way, handwritten terms prevail over printed or typewritten terms.

How often should a financial checkup be completed? ›

Key Takeaways

It can be useful to perform a financial checkup annually and after any major life event, such as a marriage, divorce, birth, or death. Your checkup should include your retirement accounts and other savings, your debts, your estate plan, and your insurance coverage, among other topics.

How often should I review my financial plan? ›

Most experts recommend revisiting your long-term goals and financial projections once a year. This gives you enough time to spot patterns in sales or spending in addition to determining whether your financial goals are still relevant.

How often should you check your checking account balance? ›

You should monitor your checking account at least once or twice a week. The more activity and transactions you make, the more often you should check your account. You should check your balance and your transactions for accuracy.

How often should balance checks be carried out? ›

1. Reconcile at least once every month. Cross-checking bank statements with the balance sheet at least once every month during the closing process is necessary. It helps identify discrepancies early and prevent errors from piling up.

Top Articles
HOW THIS NEW GRADUATE PAID OFF $300K OF STUDENT LOANS IN 1 YEAR –
Best Strategies for Paying Off Credit Card Debt - Wealth Journey Compass
Free Atm For Emerald Card Near Me
Rabbits Foot Osrs
Meer klaarheid bij toewijzing rechter
Practical Magic 123Movies
Lexington Herald-Leader from Lexington, Kentucky
Otis Department Of Corrections
Noaa Swell Forecast
Bluegabe Girlfriend
Paula Deen Italian Cream Cake
You can put a price tag on the value of a personal finance education: $100,000
About Us | TQL Careers
Hilo Hi Craigslist
Wisconsin Women's Volleyball Team Leaked Pictures
How pharmacies can help
The Pretty Kitty Tanglewood
Maxpreps Field Hockey
The Weather Channel Local Weather Forecast
How Long After Dayquil Can I Take Benadryl
27 Paul Rudd Memes to Get You Through the Week
What Equals 16
4 Methods to Fix “Vortex Mods Cannot Be Deployed” Issue - MiniTool Partition Wizard
Unreasonable Zen Riddle Crossword
Schooology Fcps
Uno Fall 2023 Calendar
Lawrence Ks Police Scanner
Rugged Gentleman Barber Shop Martinsburg Wv
Wisconsin Volleyball Team Leaked Uncovered
The Menu Showtimes Near Amc Classic Pekin 14
Great Clips On Alameda
Pitco Foods San Leandro
Craigs List Jonesboro Ar
Mydocbill.com/Mr
Mckinley rugzak - Mode accessoires kopen? Ruime keuze
Gpa Calculator Georgia Tech
Trizzle Aarp
11526 Lake Ave Cleveland Oh 44102
Postgraduate | Student Recruitment
Best Restaurants West Bend
Vindy.com Obituaries
ESA Science & Technology - The remarkable Red Rectangle: A stairway to heaven? [heic0408]
Top 1,000 Girl Names for Your Baby Girl in 2024 | Pampers
Dontrell Nelson - 2016 - Football - University of Memphis Athletics
American Bully Puppies for Sale | Lancaster Puppies
Kaamel Hasaun Wikipedia
Boyfriends Extra Chapter 6
Www.homedepot .Com
Sam's Club Fountain Valley Gas Prices
Ranking 134 college football teams after Week 1, from Georgia to Temple
Latest Posts
Article information

Author: Wyatt Volkman LLD

Last Updated:

Views: 5968

Rating: 4.6 / 5 (66 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Wyatt Volkman LLD

Birthday: 1992-02-16

Address: Suite 851 78549 Lubowitz Well, Wardside, TX 98080-8615

Phone: +67618977178100

Job: Manufacturing Director

Hobby: Running, Mountaineering, Inline skating, Writing, Baton twirling, Computer programming, Stone skipping

Introduction: My name is Wyatt Volkman LLD, I am a handsome, rich, comfortable, lively, zealous, graceful, gifted person who loves writing and wants to share my knowledge and understanding with you.