I discovered my cheque book in the bottom of a cupboard over the weekend and realised it has been many years since I wrote one. With ATMs and internet banking I never need to write them, and when I receive a cheque as a payment for something it is a pain in the ass to have to go into the branch to bank it. On top of that the branch charges you to deposit a cheque!

So, who still uses this archaic instrument?

Just enough people to be really annoying. In my businesses I am instantly suspicious of anyone who insists on paying by cheque - usually I refuse.

No firm date from banks for their use to end though, not here anyway ?

As soon as I received my cheque book from my bank, I ripped it up as I never use cheques. I can't even remember the last time I wrote a cheque. I was probably over two years ago about 3 days before payday so I could get some petrol for my car, knowing the cheque wouldn't leave my account until after my pay was put in my account.

Quoting Andz (Thread starter): So, who still uses this archaic instrument?

Americans.

Quoting Andz (Thread starter): On top of that the branch charges you to deposit a cheque!

Here we have to pay to transfer funds w/o cheques. Use the paper instrument and the transfer of funds is free.

Quoting Pacificjourney (Reply 1): In my businesses I am instantly suspicious of anyone who insists on paying by cheque - usually I refuse.

Why do you dislike Americans?  

Quoting Pacificjourney (Reply 1):

I recognise your signature from the Holy Grail.... but isn't it "repressed" ?

Out here its still usefull.
Prefered to cash payement.
And most places.....The payment is considered subject to the cheque going thru.

regds
MEL

I think here in Finland cheques has been redundant since late 80's - was replaced by a "bank card".

I can remember (from the 80's) that my mum use to have a cheque book.
When I moved to UK in end of 90's I was VERY surprised to receive one myself (I never had one before) and how often cheques were used. I never used a single one of mine and when I moved out of the country and closed my account the bank lady couldn't believe that I had not used a single one of my cheques.
Edit: typo corrected as the spelling check does not correct the typos although I correct them

[Edited 2008-07-28 01:51:59]

Quoting DABZF (Reply 6): When I moved to UK in end of 90's I was VERY surprised to receive one myself

My first encounter with the UK banking system was in 1982 when I was there on holiday. Here we already had ATMs so when I arrived there and went to get money from my dad's banking account I was amazed at what transpired.

The bank require me to open an account and transfer the money into it. No problem there. Then, they asked me where I expected to draw money around the UK as they needed to send a signature card to each branch! WTF?? I went to the teller, drew the whole lot and closed the account.

Thankfully, here in the states, close to 95% of businesses and organizations take electonic fund trasnfers. However, there are still a few—such as an insurance company I use—who have no such system, and the only way to pay them is via check.

The other thing is my Homeowner's Association dues. They have no way to process electronic transfers, and if they did by default, then they would surely leave half of the association in the cold. The same goes for private transfers.

Unfortunately we're still pretty backward in this country in this regard, so all Americans write checks all the time.

I don't really mind, and it can be convenient too sometimes. The thing that irritates me most of all though is when I have to mail a check... Who has postage stamps anymore? Ugh.

Quoting Misbeehavin (Reply 10): Unfortunately we're still pretty backward in this country in this regard, so all Americans write checks all the time

Not backward at all: cheques sure have their advantages. One very useful one springs to mind: a couple of years ago I had a problem with my gas boiler. Trying to get someone to repair it wasn't easy, but I eventually located a guy 30 miles away. He came out, opened it up, said it needed a new circuit board, which he just "happened" to have in his van. Half an hour later he said it was fixed and charged me 280 euro. A bit steep, I thought, but it was one of those things that you can do nothing about, and I was just relieved to have it working again in the middle of winter. He blamed the high cost on extras such as a Saturday call-out and the distance involved. I had to pay him by cheque, which turned out to be very fortunate. The following day the problem with the boiler re-occurred. I removed the cover and discovered that not only were there no circuit boards inside, absolutely nothing had been touched, which was evident by a light film of dust on all the components. Monday morning I phoned the bank and stopped the cheque, then phoned him telling him of my discovery. Had I paid cash, it would have been bye bye 280 euro.  

And the fact that I work for the largest cheque-printing company in the country doesn't make me biased, of course. 

Quoting Misbeehavin (Reply 10): Unfortunately we're still pretty backward in this country in this regard, so all Americans write checks all the time.

Agree. The US banking system is very archaic at best. It seems the more rural the area or smalleer the bank the worse the service. Try transferring money to/from a foreign bank account or go to a small town bank to exchange Euros for Dollars. They think you're from Mars or a terrorist.

Back to checks.....even when I lived in the US I thought checks were a pain in the butt. Once during my college years I had a summer job at a local supermarket. Of course they issued paychecks every two weeks. Well I took my check folded it once and put in my wallet. I didn't get to the bank until later the next week. I presented my paycheck, folded just once, otherwise perfectly fine. The bank teller refused to deposit it. I asked why and was told "it's ILLEGAL to fold checks". I was wise enough, even at 19, not to argue. I appologized and simply went to another branch. It was desposited without any problems.

I'm not sure if I even know how to write checks anymore.

Quoting Andz (Thread starter): So, who still uses this archaic instrument?

I do. Fact is, I have only used an ATM once in my life and I have never had a debit card. There are good and sufficient reasons for me not to change. A little forward planning on my part produces all the benefits of e-banking with none of the pitfalls. When I have a trip laid on, I simply remove enough cash to pay for what I anticipate I will need.

By comparison I often see people buying a cup of coffee or a sandwich with a debit card or credit card. It's a convenience to be sure but not one that is conducive to financial discipline.

Here's what writing checks does for me. It allows me to keep closer tabs on my money and where it's going because there it is in black and white-what I wrote the check for, who I wrote it to, and why I did it.

The hard copy also allows me to separate business and personal expenses and that's handy around tax time when I'm doing my schedule Cs.

Right now I'm in the midst of a lawsuit and I am requesting discovery of checking account records for a number of corporations. The defendant was using a bank debit card and it produces no records of whom the payments were made to or what they were for. Which was good for the defendant, or anyone who wants to hide their financial trail.

Having the register with the copies in it is good, but not as good as when the bank used to return the cancelled checks to you in the mail. Having those allowed me on a number of occasions to wave it under a creditor's nose and say "See, you got your money. There's your signature. Good bye."

As far as EFTs go, a lotta places that take checks use them to do EFTs right on the spot, or like my mortgage payment as soon as they get it.

Also, writing a check is your last chance to say to yourself "Do I really need to make this purchase?" It's conducive to financial disipline is what it is.

I don't know why that equates to what some posters here have called archaic, backward, and primitive. It's time consuming for sure, but that's a small thing.

Quoting Cgnnrw (Reply 12): Try transferring money to/from a foreign bank account or go to a small town bank to exchange Euros for Dollars. They think you're from Mars or a terrorist.

That's because they don't have very many requests for the service, don't you see? Do you invest in inventory you're not likely to move for a year or more?

I mean, think about it. Here in Iowa we're several thousand miles from the euro zone. Anyone who uses euros would have changed their money in the first large city they fetched up in. So when you walk into a bank in the middle of the country with a fistful of euros, people are going to wonder about that, and it's entirely reasonable to do so, because they're not set up for it.

Quoting Dougloid (Reply 13): Here's what writing checks does for me. It allows me to keep closer tabs on my money and where it's going because there it is in black and white-what I wrote the check for, who I wrote it to, and why I did it.

That's what I use Quicken for. My bank (as do many others now) already posts the amount, and payee with every transaction, so that's already trackable, and an easy entry into Quicken. Plus, Writing down the check info in your checkbook's ledger tends to muddy up the picture if a good portion of your expenses are paid electronically.


What the real issue is then, is that there are people who write checks, but fail to keep track of their expenses.

Quoting Andz (Thread starter): So, who still uses this archaic instrument?

My wife. I've begged her to stop using checks but to no avail. I try to get her to do everything online because it's so much easier and better documented. The information flows seemlessly from the bank to my money mgt software. But alas, I've had no success.

There are certain places and things that you MUST write a check for that don't take credit cards. For instance, many people who rent their homes, have to write a check as most apartment complexes won't take debit/credit cards. If you don't have a checkbook, then you have to go to your bank and have a cashier's check written out, which is annoying to do and takes up time.

I don't really write checks and most places don't accept them. But you have to keep one around for necessity.

And yes, it costs me aprrox. 30 dollars to do a wire transfer of funds to and from my bank account. ANNOYING!

Also, what's up with these soaring ATM surcharges? I mean seriously, $5 to get out MY OWN money?

UAL

[Edited 2008-07-28 07:58:49]

Quoting UAL747 (Reply 16): And yes, it costs me aprrox. 30 dollars to do a wire transfer of funds to and from my bank account. ANNOYING!

WTF? Are you serious? I transfer money between my accounts at different banks all the time, and I haven't has to pay a single cent yet!

Who still spells it C-H-E-Q-U-E-S?

Doesn't that stike you as a little dandified? Just a bit Louis XIV?

I do reqularly when paying more than about $20 to an individual who doesn't happen to have any means to process plastic in his pocket.

I will say, however, that plastic, and worse, online banking are the big tools of identity theft and the whole situation makes me uncomfortable.

Quoting UAL747 (Reply 16): Also, what's up with these soaring ATM surcharges? I mean seriously, $5 to get out MY OWN money?

Live by the ATM, die by the ATM. Folks wanted it and now they're getting it good and hard.

One thing that folks gave up with e-banking is the ability to play the float. In other words, writing a check on thursday afternoon knowing you're getting paid Friday before the check hits the bank. It's short term interest free borrowing is what it is and it was nice.

Now, on the other hand, that's exactly what my credit union does to me. My paychecks are transferred to the credit union on Thursday as are the wife's. But they're not posted to our account for a day. What that amounts to is the credit union using our funds for overnight balancing rather than borrowing from the Federal Reserve to balance the books. It saves them a lot of money.

Quoting Dougloid (Reply 18): to play the fl

That is very much at the heart of what troubles me about e-money.

Most Americans work from the 1st to the 15th and get paid on the 20th and from the 16th to the end of the month and get paid for that on the 5th of the following month, or something very much like that. I know of at least one major corporation (an airline) which holds your pay about 20 days. After you start getting paychecks it seems just like any other pay schedule but the effect is that either:

1. They have borrowed one entire paycheck from each employee for the entire time that person works there or

2. They have borrowed the entire payroll for 20 days without interest.

Neither of these is an option you or I have. The excuse for delayed pay used to be banking delays, as if armies of Bob Cratchits stood over giant ledgers with quill pens. Today your pay should be transferred to your bank day by day if not hour by hour. The very instant you perform the work it is your money.

But I guess "that's the way we've always done it" is reason enough to continue.

Quoting SlamClick (Reply 17): Who still spells it C-H-E-Q-U-E-S?

Pretty much the rest of the world except US.

Quoting PNQIAD (Reply 21): Pretty much the rest of the world except US.

Well, then, so much for the US being imperialist. The rest of the world doesn't even adopt our less affectatious spelling...

We still have to write them occasionally, for the kids' schools functions and such. Also, we're going to start doubling up car payments, and to make sure the second payment goes to principal only, I'll write a check out for that.

All the bills I have, I write a check to pay them. I tried e-bill pay (or what ever Wells Fargo calls it) some time ago. The bank charged me a service fee for using that service, so I went back to checks, for which they don't charge anything.

Quoting UAL747 (Reply 16): Also, what's up with these soaring ATM surcharges?

As long as I use a Wells Fargo ATM, I don't get charged anything. I recently had no choice but to use a CU Anytime ATM. Wells Fargo charged me $2.50 for doing so on top of the $1.75 fee charged by the ATM owner.

An obvious use is as gifts, in addition to the above mentioned situations. A check is an easy way to give a cash gift to somebody, and I've never heard any complaints.

Quoting Pope (Reply 15): My wife. I've begged her to stop using checks but to no avail

Thanks God my wife doesn't. She would say "how can we be overdrawn? There's still cheques in the book..."

Quoting SlamClick (Reply 17): Who still spells it C-H-E-Q-U-E-S?

People who speak proper English. Hey, you started it.....

The last time I used a cheque was last summer (and this was after many years of not using them, except the occasional tax reimbursement cheque from the government).
I used it when I went to another town 300 km away to buy my Land Rover, I didn't want to carry a huge amount of cash (Euro 6000,-) in my pocket. I had Euro 900,- in cash for a down payment, and insisted that the rest would come per cheque, even though the seller insisted on being paid in cash.
But I felt safer just with my cheque book, especially since I had to pass through the mauin railway station area in FRA, which is not the nicest place to go (lots of prostitution, cheap bars, drug addicts etc.).

Jan

99.9% of all the cheques I write are to pay my credit card balance every month in full. Thanks for reminding me I will do this tonight so will pay my balance tomorrow.

Quoting SlamClick (Reply 20): 1. They have borrowed one entire paycheck from each employee for the entire time that person works there or 2. They have borrowed the entire payroll for 20 days without interest.

Short term, interest free financing: it's a beautiful thing. if you've got the fortitude you can take the credit card companies for a ride that way. They're betting that you don't.

I do every two weeks, to my friend who cleans my house. I almost never have much cash with me and I'm not going to the bank just to get her cash when a cheque works just as well. I doubt she has set up electronic bill receiving ability for her business, either. So cheque it is.

I write cheques for my curling club dues, too, since I know every dollar counts there, and if I pay by credit card, the credit card company takes a cut.

Other than that - a few other occasional service providers get cheques. But that's about it.

When we moved here, I was amazed to see how many places in the US accept cheques. Grocery stores even! In Canada you would have to set up a special cheque acceptance card with the store before you could give them a cheque and it was generally a huge PITA. It always frustrates me when someone pays by cheque at the store - it's so SLOW.

Here in the US, some utilities, especially the water utilities serving the apartments accept only checks, or charge a fee for credit/debit cards. I find that annoying as most other utilities accept online paymentws without charging any fees. And apartments don't accept credit/debut cards for paying rent ( or charge a fee for that amount).

But the biggest annoying factor for me is someone in a check out line (pun intended  ) trying to find their checkbooks at the last minute after the clerk has told them their amount due. Come on, you have been waiting in the line so long why didn't you open up your check book and fill up everything except the amount???

Quoting JJJ (Reply 28): You mean your bank charges you 5$ to withdraw from your account (not credit, just cash withdrawal)?

No, my bank charges me $0 to get out money IF I use their ATM. That being said...this weekend I went to the lake and for instance and they don't have my banks ATM, therefore I have to pay a surcharge. It drives me crazy.

Does anyone remember the times when ATM's were free? People nickle and dime everyone for everything these days.

UAL

Quoting Andz (Thread starter): On top of that the branch charges you to deposit a cheque!

I would change my bank if that was the case.

Quoting SlamClick (Reply 17): Who still spells it C-H-E-Q-U-E-S?

Everyone else  

Quoting SlamClick (Reply 17): I will say, however, that plastic, and worse, online banking are the big tools of identity theft and the whole situation makes me uncomfortable.

Actually, checks have been a big problem in identity theft and just plain ol' theft with tactics like check washing and the like.

Quoting UAL747 (Reply 16): Also, what's up with these soaring ATM surcharges? I mean seriously, $5 to get out MY OWN money?

While I still despise ATM fees, I have actually noticed that they have dropped a bit.

Quoting JJJ (Reply 28): You mean your bank charges you 5$ to withdraw from your account (not credit, just cash withdrawal)?

The bank that owns the ATM charges about half and his own bank the other half.

Quoting N1120A (Reply 34): While I still despise ATM fees, I have actually noticed that they have dropped a bit.

Are you kidding? Chase just raised theirs to 5 dollars about 3 weeks ago. They seem to me to keep going up. What's next..."I give you 20 for a 20?"

I keep thinking, what are some people going to do who don't have a lot of money need to get out their last 20 bucks but can't because of the ATM surcharge? I mean, those things aren't that expensive to operate or run/power, etc. And at 5 bucks a pop at some, do you know how much money those things bring in? I mean it's crazy how many people use them!

UAL

I write a weekly cheque to my Dad in the form of house rent (aka the amount of food I eat) and also transferring money to my mates is still done in cheque form sometimes, as often I wont have the chance to get to an atm.
At work we no longer take cheques though (Vue Cinemas).

Kev.

I believe the question is which businesses and banks still accept cheques? 

The only time I'll use a cheque is when I have to leave one with someone I am setting a direct deposit/withdrawl account with. Otherwise, its cash, credit or debit for me.

In Finland employers have used almost nothing but electronic transfers since the 80's. Your salary will need be on your account on your payday, (if your employer is liquid), and anyone save perhaps a odd gold miner in Lapland has got a bank account. Internet banking accounted for 67 % of all private transactions conducted in 2007 according to www.stat.fi.

The first ATMs I saw in my rural town in the early 1980s at the STS (Finnish Workers' Saving) Bank were made my Olivetti. The ATMs were pooled when more banks joined in. To the ATM card was usually attached a debit card function.
Nokia made their own ATM, which business was later I believe sold to NCR as such, and I saw them being widely used in the UK around 1990.

Shops here have not accepted cheques for years, but they still have a niche when you need to temporarily transfer very large sums, like the payment for your house, as "bank cheques" in a more concrete form when all parties will meet with the estate agent in a bank.

Quoting Pacificjourney (Reply 1): In my businesses I am instantly suspicious of anyone who insists on paying by cheque - usually I refuse.

Why? Would cash not be more suspicious?

Quoting Andz (Thread starter): On top of that the branch charges you to deposit a cheque!

That's crazy...

Quoting Analog (Reply 3): Here we have to pay to transfer funds w/o cheques.

I've never paid a dime every time I make a transfer on line with Bank of America or in a branch.

Quoting Cgnnrw (Reply 12): It seems the more rural the area or smalleer the bank the worse the service.

Personally, I've found the smaller th bank, the BETTER the service.

Quoting Cgnnrw (Reply 12): Try transferring money to/from a foreign bank account or go to a small town bank to exchange Euros for Dollars. They think you're from Mars or a terrorist.

Perhaps due to the complexity of the transfer for a small, often local bank. Also, perhaps its because a small town doesn't exchange much currency? No, its because they think you are a terrorist. Yep that must be it.   

Quoting UAL747 (Reply 16): Also, what's up with these soaring ATM surcharges? I mean seriously, $5 to get out MY OWN money?

Get a new bank.. Seriously, what kind of nonsense is that? Hell, a few banks here REFUND the fee's if you use another banks atm...

Quoting Andz (Thread starter): So, who still uses this archaic instrument?

The only checks I write any more are to my company (we can buy product that I want at a heavily discounted rate but it has to be purchased on a Company PO, so I reimburse the company for my purchases), everything else is paid electronically, at least from my end.

Quoting Analog (Reply 3): Here we have to pay to transfer funds w/o cheques. Use the paper instrument and the transfer of funds is free.

Huh? With my Bank of America account I've never been charged for transfers or electronic bill payments. I paid out the ass for an wire transfer when I bought my house, but it was hardly anything compared to the amount I was transfering (IIRC, $60 on a $60,000 transfer)

Quoting Goldenshield (Reply 8): who have no such system, and the only way to pay them is via check.

and...

Quoting Goldenshield (Reply 8): The other thing is my Homeowner's Association dues. They have no way to process electronic transfers, and if they did by default, then they would surely leave half of the association in the cold

At least with my bank you can "electronically" pay anyone or anything; if they don't actually accept electronic payments the bank cuts a check and mails it to them at no charge...I've even paid my mom this way (it's a really trippy rainbow-colored thing that includes a phrase similar to "Please credit the account of our mutual customer") -- this is also how I pay my HOA dues.

Quoting SlamClick (Reply 20): But I guess "that's the way we've always done it" is reason enough to continue.

Quoting SlamClick (Reply 20): Most Americans work from the 1st to the 15th and get paid on the 20th and from the 16th

I would argue that the costs of processing payroll on an hourly or even daily basis (human overhead and fees) outweigh the benefits.

I've never been paid more frequently than monthly...current gig is salaried the 1st to the 31st with direct deposit on the 1st of the following month; last two gigs were hourly and the 15th through the 14th... I didn't see a problem with it. In fact, I'm much happier getting a large paycheck once monthly than smaller checks more frequently as had happened during a couple "special" (holiday) pay periods in the last gig.

I write 3 checks per month, 1 for rent, 1 for utitities, and 1 for the cellphone. I also write them out for vechicle purchases, but thats a while off though.

Quoting Lincoln (Reply 40): I would argue that the costs of processing payroll on an hourly or even daily basis (human overhead and fees) outweigh the benefits.

Gee, silly me. I thought we had computers that could do that.

Fact is THEY DO when it is money coming in.
They do not when it is money going out.
Personally I call it fraud.
Others call it capitalism.

Quoting ScarletHarlot (Reply 31): When we moved here, I was amazed to see how many places in the US accept cheques. Grocery stores even! In Canada you would have to set up a special cheque acceptance card with the store before you could give them a cheque and it was generally a huge PITA. It always frustrates me when someone pays by cheque at the store - it's so SLOW.

Quoting Blrsea (Reply 32): But the biggest annoying factor for me is someone in a check out line (pun intended ) trying to find their checkbooks at the last minute after the clerk has told them their amount due. Come on, you have been waiting in the line so long why didn't you open up your check book and fill up everything except the amount???

Awwwwwww come on...you folks are starting to sound like those ads on teevee where the dork pulls out some bills to pay for his coffee and everyone looks at him like he's got crap on his shoes....what were you going to do with all that time that's being taken, so you think, by someone writing out a check?

Chill out. That's why they put People magazine in the checkout lines in groceries.

Quoting SlamClick (Reply 42): Gee, silly me. I thought we had computers that could do that.

Ovbiously it's a little different at every orginization, but everywhere I've worked has had significant human involvement between the work being performed and the being paid -- yes computers can handle the actual moving money from A to B, but the other steps are a little difficult (and I know my current employer's payment processor has a fixed fee for every payment)

When I worked for the school district, the Principal's secretary had to review the time sheet I submitted, confirm that the hours were going to be charged to the correct cost centers, and approve it for payment

When I worked for the University, my boss had to review my timesheet, ensure that it was accurate and complied with the terms of my employment, then approve it; then the Director had to approve charging it against the department's cost centers (and that there were enough funds available in the cost center to be charged!) and then approve it for payment.

At my current employer... what actually happens to get me paid is far foggier, but I know that every month our Office Manager deals with adjusting for sick time and paid vacation, adding incentive/premium pay for certain projects, per diem, etc. before transmitting the gross and net amounts to the payment processor.

Lincoln

I wrote a check for a campaign contribution some months ago and before that the last check was to the Katrina relief fund. All bills are paid online via my primary bank. BTW, all my statements are electronic now; paperless.

I rarely write a check, except for my plates once a year since the county charges to process credit cards. I usually pay my flight instructor with a check as well since he has no way of accepting credit cards and I don't carry much cash.

I also have free ATM withdrawl nationwide- and get 5% interest on my checking account compounded monthly. A few catches though- you must use your debit card at least ten times per month (easy actually) and accept statements via e-mail instead of USPS. Still a great deal as someone with ten grand as an average monthly balance gets $42 a month in interest.

Quoting Goldenshield (Reply 8): The other thing is my Homeowner's Association dues

That's one that I forgot about. I have to pay by check too.

Also, I pay my housekeeper by check as well.

Me!!!!!
I still pay all bills with checks. I like to be able to control when the payment is made.

Quoting Jeremy (Reply 48): I like to be able to control when the payment is made.

That's actually another reason why I love doing the online bill payment thing -- Bank of America allows you to specify the date that the payment will be delivered, and will (according to their terms and conditions, never had to try it) pay any late fees, penalties, or interest incurred if they don't get the payment to the payee by the date specified... and IIRC, the money only comes out of your account on that date, even if the a physical check has to be cut and is delivered sooner.