Why are Americans still dealing with checks in the age of digital banking?
That same scam is also ran on every other payment method. These would all be prevented by not accepting checks that aren't for the exact amount and don't pay the difference in cash to the check writer.
One reason is to avoid card transaction fees. For smaller companies providing often expensive services, like tree felling, they'll pass on the card transaction fee to the client or recommend they just pay by check to avoid it.
Which is against the agreement with the banks, but here we are.
Even if it's not explicitly passed on to the customer, prices increase to cover those fees. We had $7500 of tree felling and fire mitigation work done a few years ago. Assuming the fee is 3%, no reason for either party to pay $225 for the convenience of using a card when a check works fine.
Because the US detests change of any form, even if it will make things better.
More and more it seems like it’s especially if it’s gonna make things better lol
Boomer contractors who can't figure out how to take a payment on a mobile device.
I still have to have a checkbook because my dog groomer and my tree trimmer/gutter cleaner companies both refuse to accept cards. They are small businesses and don't want to deal with the fees. My options are go get cash every time, or keep a checkbook on hand to write checks. While I understand their reasoning, it's infuriating that checks even still exist.
Lots of small businesses using square and other payment processors.
Honestly if a business told me that they don’t take card, I’d tell them they don’t take my business. Unless they’re an exceptionally skilled artisan (and I’m in the market for an exceptionally skilled artisan), their shit stinks like everyone else’s, and there’s another guy right behind them that will gladly take my money.
Man I hate having to bring cash for Facebook marketplace meetups, but at least then it’s worth the hassle because it’s an exceptionally good deal or unique item.
For me it's services that I will pay by check for, not goods. My dog groomer took me a long time to find someone that would actually listen and not try to over-groom my dog. (Just bathe him, trim his paws and ears, and send his ass home! He's a golden, do not cut off his chest fur, or his pantaloons, or his arm feathers!) And our gutter/tree guy because he legit charges half what the other larger companies in the area charge, does good work and cleans up after. I would rather give him a check than pay twice as much (not kidding) to the big corpo place via card.
I haven't had a checkbook in a long time.
I have received a check for some equity with a previous employer. There is barely any bank on the continent that can do anything with it, so I'll wait for my next overseas trip to cash it.
I receive checks sometimes. My mother-in-law sends them as a gift, for example. But my credit union just lets me take a photo of the front and back through their app, with 'VIA MOBILE DEPOSIT' written on the back.
On the other hand, I couldn't even tell you the last time I wrote a check.
What are you talking about pretty much any bank can cash a check....?
In the NL, ING was the last one that did, they stopped doing it three years ago. I go to a few other countries around the EU as well regularly, it's the same. Checks are not really a thing here any more.
Most foreign banks don't deal with American checks. If you retire outside of the u.s. it can be difficult to deal with your retirement funds. There are a few expat banks around that specialize in dealing with this problem.
It's the only way to pay cashless without paying transaction fees. Big banks make too much off of credit card fees to allow instant transfers like the rest of the world.
Thanks for reminding me I need to go get a check lol.
Momentum more than anything, lot of places don't accept them at all
I’m certainly not handing out my card over the phone.
Many companies won’t accept credit cards or debit because of having cheats charge back, and because to avoid companies abusing cards and charging wrong, the onus is very heavily on the comoany. Basically, a charge back means that contractor or whatever isn’t getting paid.
The scam is easy enough to avoid. The first is to know who you’re dealing with, and that they’re authorized to authorize the work. Check the county property maps and match it to their ID. (If it’s corporate, or whatever, then an employee ID or something. Property managers have ways of demonstrating agency.)
Then, take payment before work starts. (Or at least a deposit.)
If that’s too much, then, when an over-payment does arrive, return the uncashed check and ask for a new one. (Or cash it, let the money settle then give the money back.)
I’m certainly not handing out my card over the phone.
Wait till you learn your routing and account numbers are right there, unencrypted, on the check, and there's basically zero protection against unauthorized drafts in the EFT system.
You can’t take account and routing to most websites and buy shit like you can with the card/expiry/secret.
Is it perfect? No. But my bank should catch that anyhow- because I never write paper checks- I go online and tell them to mail one.
I think you're assuming that a merchant who collects card details for payment also stores those details. They do not. The information is immediately tokenized and a 1-way authorization token is returned to the merchant. It's literally what that little spinny circle when you click "pay" is doing. It's reaching out to the payment network, which is in turn, reaching out to the card issuer who is proxying it to the issuing bank and asking for authorization.
At no point is your card number retained by the merchant. If the authorization code is somehow leaked, it's literally only good for a single transaction, and can't be used to generate future transactions.
That's great for PoS terminals.
Websites are a bit different; you can elect to not store your details, sure, but they're still running it. Further; you give your card details over the phone, it's conceivable they can then use it online.
Especially, for example, for food delivery. It's best practice to not give details over the phone. Originally the whole point of the secret pin thingy (those 3 or 4 digits on the back that are printed and not embossed) were meant to allow you to give the number/name/expiry for the card and have something that prevents this. But these days, most delivery services will just use their website to 'place' the order for you.
Why are Americans still dealing with checks in the age of digital banking?
That same scam is also ran on every other payment method. These would all be prevented by not accepting checks that aren't for the exact amount and don't pay the difference in cash to the check writer.
One reason is to avoid card transaction fees. For smaller companies providing often expensive services, like tree felling, they'll pass on the card transaction fee to the client or recommend they just pay by check to avoid it.
Which is against the agreement with the banks, but here we are.
Even if it's not explicitly passed on to the customer, prices increase to cover those fees. We had $7500 of tree felling and fire mitigation work done a few years ago. Assuming the fee is 3%, no reason for either party to pay $225 for the convenience of using a card when a check works fine.
Because the US detests change of any form, even if it will make things better.
More and more it seems like it’s especially if it’s gonna make things better lol
Boomer contractors who can't figure out how to take a payment on a mobile device.
I still have to have a checkbook because my dog groomer and my tree trimmer/gutter cleaner companies both refuse to accept cards. They are small businesses and don't want to deal with the fees. My options are go get cash every time, or keep a checkbook on hand to write checks. While I understand their reasoning, it's infuriating that checks even still exist.
Lots of small businesses using square and other payment processors.
Honestly if a business told me that they don’t take card, I’d tell them they don’t take my business. Unless they’re an exceptionally skilled artisan (and I’m in the market for an exceptionally skilled artisan), their shit stinks like everyone else’s, and there’s another guy right behind them that will gladly take my money.
Man I hate having to bring cash for Facebook marketplace meetups, but at least then it’s worth the hassle because it’s an exceptionally good deal or unique item.
For me it's services that I will pay by check for, not goods. My dog groomer took me a long time to find someone that would actually listen and not try to over-groom my dog. (Just bathe him, trim his paws and ears, and send his ass home! He's a golden, do not cut off his chest fur, or his pantaloons, or his arm feathers!) And our gutter/tree guy because he legit charges half what the other larger companies in the area charge, does good work and cleans up after. I would rather give him a check than pay twice as much (not kidding) to the big corpo place via card.
I haven't had a checkbook in a long time.
I have received a check for some equity with a previous employer. There is barely any bank on the continent that can do anything with it, so I'll wait for my next overseas trip to cash it.
I receive checks sometimes. My mother-in-law sends them as a gift, for example. But my credit union just lets me take a photo of the front and back through their app, with 'VIA MOBILE DEPOSIT' written on the back.
On the other hand, I couldn't even tell you the last time I wrote a check.
What are you talking about pretty much any bank can cash a check....?
In the NL, ING was the last one that did, they stopped doing it three years ago. I go to a few other countries around the EU as well regularly, it's the same. Checks are not really a thing here any more.
Most foreign banks don't deal with American checks. If you retire outside of the u.s. it can be difficult to deal with your retirement funds. There are a few expat banks around that specialize in dealing with this problem.
It's the only way to pay cashless without paying transaction fees. Big banks make too much off of credit card fees to allow instant transfers like the rest of the world.
Thanks for reminding me I need to go get a check lol.
Momentum more than anything, lot of places don't accept them at all
I’m certainly not handing out my card over the phone.
Many companies won’t accept credit cards or debit because of having cheats charge back, and because to avoid companies abusing cards and charging wrong, the onus is very heavily on the comoany. Basically, a charge back means that contractor or whatever isn’t getting paid.
The scam is easy enough to avoid. The first is to know who you’re dealing with, and that they’re authorized to authorize the work. Check the county property maps and match it to their ID. (If it’s corporate, or whatever, then an employee ID or something. Property managers have ways of demonstrating agency.)
Then, take payment before work starts. (Or at least a deposit.)
If that’s too much, then, when an over-payment does arrive, return the uncashed check and ask for a new one. (Or cash it, let the money settle then give the money back.)
Wait till you learn your routing and account numbers are right there, unencrypted, on the check, and there's basically zero protection against unauthorized drafts in the EFT system.
You can’t take account and routing to most websites and buy shit like you can with the card/expiry/secret.
Is it perfect? No. But my bank should catch that anyhow- because I never write paper checks- I go online and tell them to mail one.
I think you're assuming that a merchant who collects card details for payment also stores those details. They do not. The information is immediately tokenized and a 1-way authorization token is returned to the merchant. It's literally what that little spinny circle when you click "pay" is doing. It's reaching out to the payment network, which is in turn, reaching out to the card issuer who is proxying it to the issuing bank and asking for authorization.
At no point is your card number retained by the merchant. If the authorization code is somehow leaked, it's literally only good for a single transaction, and can't be used to generate future transactions.
That's great for PoS terminals.
Websites are a bit different; you can elect to not store your details, sure, but they're still running it. Further; you give your card details over the phone, it's conceivable they can then use it online.
Especially, for example, for food delivery. It's best practice to not give details over the phone. Originally the whole point of the secret pin thingy (those 3 or 4 digits on the back that are printed and not embossed) were meant to allow you to give the number/name/expiry for the card and have something that prevents this. But these days, most delivery services will just use their website to 'place' the order for you.
But you're okay sending a check?