LittleFokker
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How Much Longer On Checks?

Mon Oct 19, 2015 9:51 pm

Recently a fraudulent check was written from my account. Thankfully, my bank's fraud department caught it before the amount was cashed, so no harm done (we hired professional maids recently - it's possible one of them stole it). But naturally, I needed to change the account number, get new debit cards and checks, and so on. This thought crossed my mind: how much longer are paper checks going to be a thing? I barely write any as it is, maybe 10 a year. And that number decreases each year. Do we have like 5 more years left before paper checks become obsolete? What's stopping them from being obsolete now?
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777Jet
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RE: How Much Longer On Checks?

Mon Oct 19, 2015 10:05 pm

Quoting LittleFokker (Thread starter):
how much longer are paper checks going to be a thing?

In the US? I'd say for quite some time.

Quoting LittleFokker (Thread starter):
What's stopping them from being obsolete now?

The system there.
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LAX772LR
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RE: How Much Longer On Checks?

Mon Oct 19, 2015 10:06 pm

The eminent demise of the paper cheques has been being predicted for what, three decades now? Doubt they're going anywhere soon.

Heck, I'd like to see cash be eliminated farrrrr more than I care about getting rid of cheques. Hate using cash!   


Quoting LittleFokker (Thread starter):
What's stopping them from being obsolete now?

Someone people/businesses' continued desire to use them?
I myself, suspect a more prosaic motive... ~Thranduil
 
L0VE2FLY
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RE: How Much Longer On Checks?

Mon Oct 19, 2015 10:07 pm

I haven't written a check in years, but I know several people who use checks regularly.


Quoting LittleFokker (Thread starter):
Do we have like 5 more years left before paper checks become obsolete? What's stopping them from being obsolete now?

No way, they're quickly becoming unpopular but a lot of older folks still prefer them.
 
kiwiandrew

RE: How Much Longer On Checks?

Mon Oct 19, 2015 10:46 pm

Wow, I had no idea they were still in widespread use in some countries. I couldn't tell you exaclty when I last wrote a cheque, but it would have been more than a dozen years ago.
 
Okie
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RE: How Much Longer On Checks?

Mon Oct 19, 2015 10:47 pm

Quoting LittleFokker (Thread starter):
What's stopping them from being obsolete now?

The fact that there is a massive amount of people who do not have bank accounts and do not issue receipts.

About the only way to protect yourself is to pay with check which is an automatic receipt.

I would say in the US at least 20% are unbanked, not counting children. They operate with cash only and cash the checks but do not have a bank account and there is no way to transfer funds.
That helps escape the prying eyes for a lot of reasons.

Sort of like the panhandler that works the street corner near my house. He parks his Red Corvette behind the office building then panhandles at the corner. If I get stopped at the light I usually roll my window down and ask him how his Corvette is doing.

Okie
 
Ken777
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RE: How Much Longer On Checks?

Mon Oct 19, 2015 10:56 pm

Quoting LittleFokker (Thread starter):
how much longer are paper checks going to be a thing?

I believe they will last far longer than I do. But then I'm 71   

These days checks seems to be better than credit cards in terms of basic security. Pay looks like the strongest option with a finger print required for now. Maybe that will be integrated into electronic transfer/payments in the future. It's not that difficult to add it to computers.
 
IMissPiedmont
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 1:03 am

I find it hard to believe that anyone uses checks, all my daily bills are autopay and my credit cards and IRS I pay using their websites or apps. I fully intend to never write another check.
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photopilot
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 1:18 am

Well I only write a single cheque each month and that's to my landlord for my rent. There is no other way to pay him as he's simply not set up for it.

All my other bills are electronic and paid directly thru my bank's website.

But.... I also receive a couple of cheques per month for other income and those won't likely change. So I think cheques will be around for quite some time still.
 
FriscoHeavy
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 1:44 am

I'm 30, but still write about 6-8 checks per month on average. I keep our checkbook in my desk drawer and find myself using it often.
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seb146
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 2:03 am

Quoting LittleFokker (Thread starter):
Recently a fraudulent check was written from my account.

I shredded my checks long ago. Every place I go accepts cards and I carry cash.
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kiwiandrew

RE: How Much Longer On Checks?

Tue Oct 20, 2015 2:07 am

Quoting Okie (Reply 5):
The fact that there is a massive amount of people who do not have bank accounts and do not issue receipts.

About the only way to protect yourself is to pay with check which is an automatic receipt.

OK, sorry if these are stupid questions, but I am not familiar with how things work in your country ( one of the great things about this site is the chance to try to understand how things function in different countries)... so, here goes:

*If a lot of people don't have bank accounts how/where do they deposit any cheques they receive ?

*I don't get quite what you mean about a cheque being an 'automatic receipt' ? I guess it shows on your bank statement but then so would a payment by debit card or direct debit, so those entries would also be 'automatic receipts' wouldn't they ?

*Do all businesses accept cheques? Here a lot of businesses stopped accepting them years ago... I suspect if I tried to pay by cheque here most business operators would look at me as if I had grown an extra head.

*If cheques are still widely accepted how do businesses protect themselves against a cheque bouncing ?

Sorry for all the questions, particularly if the answers seem really obvious to anyone from your country, but I am just trying to get my head around how this works. Thanks in advance to anyone who is patient enough to answer any or all of the above questions for me  
 
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Adipasquale
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 2:16 am

Receiving pay by check is still relatively popular. Many small businesses are not equipped to offer direct deposit, some people prefer not to receive direct deposit, or do not have bank accounts to have their pay directly deposited into. I am 21 years old, and while I pay my credit card bill, etc online, I still write a few checks a month, and receive my pay via check, not direct deposit. I would estimate that while checks are far less popular than they were before credit/debit cards became widespread, they will continue to be used for at least the next two plus decades.
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flymia
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 2:27 am

There are some issues that a deal with both with my personal business and for my clients in the legal world that not issuing payment in paper checks would make things more difficult and more risky for the ones trying to prove payment.

While personally I rarely write checks, for business and work they are given ALL the time.
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Okie
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 2:58 am

Quoting kiwiandrew (Reply 11):
*If a lot of people don't have bank accounts how/where do they deposit any cheques they receive ?

They can cash them at the originating bank or there are check cashing companies that will cash them for a fee. The people just operate with cash.
The catch is on the check cashing companies they instantly electronically collect from the issuers account, they know if the check is good before they cash it.
Most retail business that take checks now automatically use the same set up they electronically instantly deduct from the checking account and will hand you your check back at the point of sale after deducting from the account.
Some retailers Wal-Mart for an example all you have to do is sign the check the machine will print all the info deduct from your account and hand you back your check marked as processed. There will be a facsimile on your bank statement.

Quoting kiwiandrew (Reply 11):
*I don't get quite what you mean about a cheque being an 'automatic receipt' ? I guess it shows on your bank statement but then so would a payment by debit card or direct debit, so those entries would also be 'automatic receipts' wouldn't they ?

There will be a facsimile on your bank statement that you can get a full copy of from the bank if you require to prove payment.

Quoting kiwiandrew (Reply 11):
*Do all businesses accept cheques? Here a lot of businesses stopped accepting them years ago... I suspect if I tried to pay by cheque here most business operators would look at me as if I had grown an extra head.

*If cheques are still widely accepted how do businesses protect themselves against a cheque bouncing ?

Covered above on larger retail points of sale.
Most small businesses have to rely on the old fashion way of depositing and wait for the check to clear 2-3 business days usually.

I personally have had to visit with my bank early on when I started my business, they wanted to sit on the large deposits for 10 days before crediting my account even though they collected the monies over night.

You just have to realize that the feds monitor bank accounts and 20% or more do not use the bank accounts because of an underground economy.

Okie
 
threeifbyair
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 3:55 am

I've often paid my rent via check. A lot of landlords are small-time, have a handful of properties (or just 1) and don't want to set up an online payment system.

Many of these online payment systems utterly suck too - my building's system was down for a while, so I had to pay by check. Now it is back, but it doesn't let you pay rent in advance. I have to log in on the 1st of each month to pay my rent. It is beyond stupid.

Until online payments can totally un-suck themselves, I'll still be writing checks here and there.
 
Okie
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 4:19 am

Quoting kiwiandrew (Reply 11):

I forgot to add that people who operate with cash can get a money order when they need to pay a bill that will not accept cash. Like a utility bill.
They pay the money order issuer the monies plus a fee for a money order sort of like a pre paid check.

The US Postal Service along with several private outfits do money orders.
Rule 1 is never go to the post office on the first of the month if you need any service. They sell a lot of money orders on the first an the lines get long.

Hope that helps.

As my friend from the UK says Americans check boxes and write checks the English tick boxes and write cheques.

Okie
 
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seb146
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 4:52 am

Quoting threeifbyair (Reply 15):
I've often paid my rent via check

Nope nope, and nope....

At least six years I have paid those kinds of bills by money order or cash. I sure as hell don't trust my bank!! My bank is one of the least corrupt but it is still a corrupt bank.
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kiwiandrew

RE: How Much Longer On Checks?

Tue Oct 20, 2015 4:55 am

Quoting Okie (Reply 16):
Hope that helps.

Thanks very much for the explanations. It sounds as though cashing a cheque is much easier in the US. Very different from how we do things here, I think here cheques are viewed with extreme suspicion. Our banking system isn't really set up with them in mind. I'm 52 and in almost my entire working life I have only ever been paid by direct credit into my bank account. ( the exception was when I worked in hospitality in Scotland back in the early 1990's and was paid in cash! )

When I lived in Belgium may salary also was automatically paid into my bank account. I'm not sure that cheques even exist in Belgium. Having said that, I was very surprised that in Belgium the only way to pay the doctor or the vet was in cash - they did not accept either credit or debit cards. IT totally bamboozled me at first, and even living there for nearly 4 years I never entirely got used to the unpredictability of who would/would not accept cards.

I don't recall seeing cheques when I lived in Mauritius either, all my regular payments were simply handled either by online banking or by automatic payment.

Rent payments here are generally handled by automatic payment, I just set it up online and second week it transfers automatically from my account to my landlord's account.

I recall at a previous job here in New Zealand ( I am going back more than 25 years now) that there were some staff who were paid by cheque, but they were very much a minority. Eventually the company I was working with at the time lost patience and gave them a month to arrange bank accounts so that they could be paid the same way as the rest of the employees. Since then I don't think I have met anyone in New Zealand who receives their wages any other other way, though I believe that some informal part time workers might receive cash.

It is very interesting to see how payments are handled in different countries, I tend to take for granted the way things work here, so it's always good to be reminded that other people do things in other ways, neither right nor wrong, just different  
 
StarAC17
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 5:24 am

Quoting kiwiandrew (Reply 11):
*If a lot of people don't have bank accounts how/where do they deposit any cheques they receive ?

Cheque cashing services will do it. In the US there is no basic banking regulation like there is in a lot of other countries.

Quoting kiwiandrew (Reply 11):
*I don't get quite what you mean about a cheque being an 'automatic receipt' ? I guess it shows on your bank statement but then so would a payment by debit card or direct debit, so those entries would also be 'automatic receipts' wouldn't they ?

There is a paper trail just like an EFTPOS merchant terminal.

Quoting kiwiandrew (Reply 11):
*Do all businesses accept cheques? Here a lot of businesses stopped accepting them years ago... I suspect if I tried to pay by cheque here most business operators would look at me as if I had grown an extra head.

It really depends on the business, some do not have the infrastructure to handle anything else. People less tech-savvy will prefer cheques than trying to figure out a small merchant service product like the square. Furthermore the square takes a 3%but so accepting a cheque can be cheaper.

Quoting kiwiandrew (Reply 11):
*If cheques are still widely accepted how do businesses protect themselves against a cheque bouncing ?

You have it in your contract that they pay a stiff penalty for bouncing a cheque or you demand a guaranteed cheque (bank draft, cashier's cheque, or a certified cheque)

Quoting Okie (Reply 14):
They can cash them at the originating bank or there are check cashing companies that will cash them for a fee.

You can't do that in Canada, we will only cash cheques for non-customers if they are federal government cheques, they are $1500 or less and they have acceptable ID. You have a right to basic banking here so anyone can have at least one account (provided they have ID and have not been caught trying to pull off some kind of fraud)
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Airstud
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 7:23 am

Quoting kiwiandrew (Reply 11):
If cheques are still widely accepted how do businesses protect themselves against a cheque bouncing ?

Okie already covered most of this for you, but I'd add you often see signs at cash registers saying v"There will be a $xx fee for a returned check." (I've never been able to figure out how they plan on collecting this fee from a bad-check-writing twerp who of course will have absquatulated by then...)

I've never ever written a check in a store. I pay my rent online. And now that I have the Chase Sapphire Preferred® card, that's how I pay my Sprint bill.

But I do mail checks to pay my three CapitalOne credit cards, my JCPenney card when I rarely have a balance on it, same for my Bloomingdale's card, Sinclair Oil, CenterPoint Energy, Express® Men, J Crew, Merrick Visa, State Farm Visa, Nordstrom, Discover, Xcel Energy, and BankAmericard.

Oh, and the aforementioned Chase card.


Oops, and my Citibank Executive World Elite card.




And my US Bank card.






...blame it, I have to go order more checks.   
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Max Q
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 7:32 am

Funny, checks or cheques, depending on where you live just seem to go on and on and I don't see that changing for a long time, I still write one occasionally.


After all, how can you have a checking account if checks don't exist anymore ?
Seriously, i'm sure they will still be called that after checks are gone.


My biggest break as a Pilot were the two years I spent flying single Pilot transporting cancelled checks
for the federal reserve bank (a business that I think is gone now ?)


It gave me the required experience to get my first airline job and later to be hired by a major airline.
Back in the mists of time..
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Airstud
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 8:06 am

Quoting Max Q (Reply 22):
transporting cancelled checks
for the federal reserve bank (a business that I think is gone now ?)

Yep, electronic check images (like the kind taken by the mobile deposit app on your phone, or by those envelope-free ATM's now have the same legal validity as paper checks. Paper checks can still be presented traditionally, sometimes making it as far as the regional sorting center, but that's where it would be truncated.

The flow o' paper checks to regional sorting centers is, of course, being rapidly phased out.
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Max Q
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 8:12 am

[quote=Airstud,reply=23]
Yep, electronic check images (like the kind taken by the mobile deposit app on your phone, or by those envelope-free ATM's now have the same legal validity as paper checks. Paper checks can still be presented traditionally, sometimes making it as far as the regional sorting center, but that's where it would be truncated.

The flow o' paper checks to regional sorting centers is, of course, being rapidly phased out.


Thought so, kind of a shame as it was a great way for younger Pilots to get experience, on the other hand
it was very unforgiving so quite a few lives will be saved.
The best contribution to safety is a competent Pilot.


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coolian2
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 8:47 am

We were sick of cheques when I started in banking 5 years ago.

Sooner they go the way of the dinosaur the better.
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mad99
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 9:49 am

I haven't used cheques in 20 years..
 
flipdewaf
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 10:29 am

I write a cheque maybe once or twice a year, my wife uses them regular for payment of milk man (never met him/her, we communicate through notes in milk bottles) and for farrier. If I want to pay for something I use either a debit card or turn on my computer and pay them directly. As for paying rent by cheque, that sounds completely ridiculous to me. We only allow our tenants to pay by direct debit, that way if a payment is missed we know about it straight away as they would have to intervene to stop it. None of this "oh I was really busy and forgot to get to the bank" or "I definately posted the cheque" Nonsense.

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offloaded
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 10:36 am

Cheques are still quite common here in Portugal, although slightly less so since there is now a 25c tax on each one and they are now only valid for a year.

Up until quite recently, if someone bounced a cheque on you, you could go to the police who would immediately arrest the offender if they didn't have the cash there and then to settle the amount. It isn't that strict now, so as a consequence, less people will accept cheques.

The other "bonus" of cheques is that quite often people leave who it is payable to blank, so that they get passed on.
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Aesma
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 12:17 pm

I still have barely started checkbooks from when my bank was called one thing, then other checkbooks from when it changed name, then current checkbooks with yet another name. All for the same account ! I'm not sure what to do with them. I've opened a new bank account elsewhere and after 6 months, have not done a single check yet.

As long as shops take them and old people like to make you wait in queue while filling them, they'll exist.

I've just looked and it turns out the biggest amounts I'm spending are by check actually, I didn't think of it : single deposits of money in my employee savings plan are done the old paper way. I also receive all the information about that plan in the mail.
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PITingres
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 1:50 pm

I've very occasionally run into situations where a paper check was the only accepted method of payment. Usually it's a non-retail, one-time transaction; I think the last one was real estate related. Large person-to-person payments are also best done by check, unless you enjoy paying transaction fees.

I might only write a check once every few years, but when you need one, there's generally not much alternative. I don't expect paper checks to go away in my lifetime.
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LAX772LR
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 8:03 pm

Quoting kiwiandrew (Reply 11):
*If a lot of people don't have bank accounts how/where do they deposit any cheques they receive ?

As stated above, they can cash them at private outlets that exist for that very reason, usually at something near 15%+ of the cheque's value. I've heard (but never personally seen) some that request up to double that amount.

Often, these places also offer payday loans in tandem... typically offering to forego all/some of the transaction fees if the person takes out a payday loan (sometimes at 500% interest or more!)

Many states have found it predatory, but others are content to let it go right along.

Also, Walmart is big in the cheque-cashing biz too.
I myself, suspect a more prosaic motive... ~Thranduil
 
StarAC17
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 9:28 pm

Quoting Airstud (Reply 21):
Okie already covered most of this for you, but I'd add you often see signs at cash registers saying v"There will be a $xx fee for a returned check." (I've never been able to figure out how they plan on collecting this fee from a bad-check-writing twerp who of course will have absquatulated by then...)

If it's a retailer then they will have to pass it through as a cost of doing business and perhaps demand payment from a certified cheque/cashier's cheque. Depending on the amount and the evidence you can possibly take that person to court.

Quoting Airstud (Reply 23):
Yep, electronic check images (like the kind taken by the mobile deposit app on your phone, or by those envelope-free ATM's now have the same legal validity as paper checks. Paper checks can still be presented traditionally, sometimes making it as far as the regional sorting center, but that's where it would be truncated.

Banks here in Canada are getting scanners in their branches to create electronic cheque images. The whole concept of the MICR encoding is designed to be computer read to begin with so this makes sense
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LAX772LR
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RE: How Much Longer On Checks?

Tue Oct 20, 2015 11:36 pm

Quoting StarAC17 (Reply 32):
Depending on the amount and the evidence you can possibly take that person to court.

  

Knew a girl who got taken to court over bad cheque for just over $25, several years after writing it.
When it was all said and done, she had to pay more than a dozen times that amount.
I myself, suspect a more prosaic motive... ~Thranduil
 
prebennorholm
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RE: How Much Longer On Checks?

Wed Oct 21, 2015 12:40 am

Quoting LittleFokker (Thread starter):
This thought crossed my mind: how much longer are paper checks going to be a thing? I barely write any as it is, maybe 10 a year.

Last year, while tidying, I found my old checkbook, not used since 1998.

Then last spring, at the annual meeting in the bank with my bank advisor, I asked him whether it was still valid. He said that he really didn't know. He was only 35 years old, so he never owned one himself. But he noted my question and would email an answer. I haven't got the answer yet. He knows it was only curiosity, that I don't need an answer.

Quoting LAX772LR (Reply 2):
Heck, I'd like to see cash be eliminated farrrrr more than I care about getting rid of cheques. Hate using cash!

Cash will disappear very fast in the future. Cash is mostly for drug dealers. I see less than 1% of my income and expenses as cash.

My hair dresser, who is from Iraq, and charges half prices, still don't accept debit card. I'm convinced that he doesn't know about income tax, VAT and such things. He probably only has a bank account for receiving his social security payment from the state.

Here it is illegal to pay large sums with cash - greater than approximately $15k. Some car dealers learned that the hard way, having to pay substantial fines for selling a car for cash money.
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jetblueguy22
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RE: How Much Longer On Checks?

Wed Oct 21, 2015 5:04 am

I wish they'd disappear. The only time I write checks is for my landlord. Actually now that I think about it, in the 3 apartment complexes I've lived in, the only way you could pay rent was with a check. Otherwise, I wouldn't have a checkbook. All my transactions are done by credit or debit card. At work though it's still common to hand out paper checks. Usually the older employees want them, or those who are suspicious and want a pay stub.

The new thing my company is pushing for those without direct deposit is an ADP card. It's essentially just a debit card they load your money up on. There's no charge for it, and they don't have to cut you a paper check.
Pat
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flipdewaf
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RE: How Much Longer On Checks?

Wed Oct 21, 2015 11:04 am

Quoting jetblueguy22 (Reply 34):
The only time I write checks is for my landlord.

I really don't understand this, why not set up an automated transfer?

Fred
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photopilot
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RE: How Much Longer On Checks?

Wed Oct 21, 2015 8:45 pm

Quoting prebennorholm (Reply 33):
Cash will disappear very fast in the future. Cash is mostly for drug dealers. I see less than 1% of my income and expenses as cash.

Boy, you mustn't have any sort of "Underground Economy" in your country. Wherever there is a cash-economy with people looking to buy/sell items or services with no paperwork, cash is KING!!!! And don't tell me that under-the-table cash transactions to beat the taxman doesn't happen in almost every country. The higher the marginal tax rate, or the HST, VAT, etc, then the more likelyhood that there will be people dealing "cash only" transactions.

Here in Canada, a Statistics Canada report valued “underground” transactions made in 2012 to evade taxes and legal obligations at $42.4 billion — up from $40.9 billion the previous year. And those are all CASH transactions.

So nope, cash is a long way from dead IMHO.
 
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RE: How Much Longer On Checks?

Wed Oct 21, 2015 8:58 pm

Quoting LAX772LR (Reply 30):
As stated above, they can cash them at private outlets that exist for that very reason, usually at something near 15%+ of the cheque's value. I've heard (but never personally seen) some that request up to double that amount.

How can a check, made out to person X, be cashed by different Company Y when the check is not made out to them?   

Banking in the US has improved greatly over the past few years, but it's very far from a unified system.
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Rara
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RE: How Much Longer On Checks?

Wed Oct 21, 2015 10:40 pm

This thread blew my mind.

Paper cheques? Really?
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Airstud
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RE: How Much Longer On Checks?

Wed Oct 21, 2015 11:49 pm

Quoting bgm (Reply 37):
How can a check, made out to person X, be cashed by different Company Y when the check is not made out to them?

Because it's been endorsed by person X.
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cjg225
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RE: How Much Longer On Checks?

Thu Oct 22, 2015 12:48 am

Quoting LAX772LR (Reply 2):
Heck, I'd like to see cash be eliminated farrrrr more than I care about getting rid of cheques. Hate using cash!

I don't use cash much, but... it does have, to me, some excellent advantages no other form of payment has.

Plus, there's just something that feels good about holding a wad of cash.
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ltbewr
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RE: How Much Longer On Checks?

Thu Oct 22, 2015 1:26 am

One positive as to checks is that another person or business don't have to give up info as to their bank account.

There are also certain transactions where a paper check, like a bank issued or 'certified' bank check may be necessary for large purchase amounts like for a car or a home down payment and want a proof of payment and due to Federal anti-tax evasion laws, cannot take large amounts of cash ($10,000 or more).

Many (including myself) don't want to make bill payments online for security reasons. I also like to use checks for medical service co-payments and premiums for tax deduction records although I could use a checking account debit card or a credit card. Overall, I use about 6-8 checks a month.
 
StarAC17
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RE: How Much Longer On Checks?

Thu Oct 22, 2015 2:37 am

Quoting ltbewr (Reply 41):
There are also certain transactions where a paper check, like a bank issued or 'certified' bank check may be necessary for large purchase amounts like for a car or a home down payment and want a proof of payment and due to Federal anti-tax evasion laws, cannot take large amounts of cash ($10,000 or more).

Perhaps its a difference of laws here but banks here can give over $10,000 in cash with extra due diligence (to see if it is money laundering or cheque fraud) and with the customer signing a waiver. Many cash heavy businesses will regularly deposit more than $10,000 often (a bar, gas station or fast food joint comes to mind).

Also you can take $10,000 over international borders as long as you declare it and have a legitimate reason for carrying it.

Quoting photopilot (Reply 36):
Boy, you mustn't have any sort of "Underground Economy" in your country. Wherever there is a cash-economy with people looking to buy/sell items or services with no paperwork, cash is KING!!!!

It will always be king.

Quoting bgm (Reply 37):
How can a check, made out to person X, be cashed by different Company Y when the check is not made out to them?   

A bank does the same essentially. When you turn over a cheque to your bank they actually give you the money from their internal account called the float and when the cheque goes to clearing the money from the issuers account goes into the bank account. If you have ever seen Catch me if you Can the whole premise of the fraud was that Frank Abagnale was able to disguise himself as a professional (Doctor, Pilot, Lawyer) and presented cheques that made sense to the tellers by the time the bank figured it out he cut and run with the cash from the bank's float and the bank had to eat the costs.

A cheque reader only is programmed to read the amount and the account information on the MICR line and transfer the money into the bank's account, the onus is on the bank to determine if the payee is correct. Why a bank would elect to hold a cheque is because they have good reason to believe that the depositor is trying to commit fraud or in the event the cheque were to bounce the bank would have difficulty recovering the funds from the depositor.
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LAX772LR
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RE: How Much Longer On Checks?

Thu Oct 22, 2015 2:52 am

Quoting prebennorholm (Reply 33):
Cash will disappear very fast in the future.

What evidence leads you to conclude that?



Quoting bgm (Reply 37):
How can a check, made out to person X, be cashed by different Company Y when the check is not made out to them?

Based on your smiley, I'm not sure if you're asking that just to be a jerk, or if you truly don't understand the rather simple process, or both... so I'll treat it as a serious question:
All X has to do is endorse it, and Y can use it all day long.


Quoting cjg225 (Reply 40):
Plus, there's just something that feels good about holding a wad of cash.

Disagree completely.

Cash is disgusting. I always feel like I have to wash my hands after touching it-- which is why I'd never use it in a restaurant anymore.
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StarAC17
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RE: How Much Longer On Checks?

Thu Oct 22, 2015 3:08 am

Quoting LAX772LR (Reply 43):
Based on your smiley, I'm not sure if you're asking that just to be a jerk, or if you truly don't understand the rather simple process, or both... so I'll treat it as a serious question:
All X has to do is endorse it, and Y can use it all day long.

At the bank I work at we have stopped negotiating double endorsed cheques because there is no real way to verify if the signature on the back is legitimate.
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Viscount724
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RE: How Much Longer On Checks?

Thu Oct 22, 2015 4:03 am

Quoting Max Q (Reply 21):
Funny, checks or cheques, depending on where you live just seem to go on and on and I don't see that changing for a long time, I still write one occasionally.

They barely exist in Switzerland. I've lived here a little over 18 years and have never seen one.
 
kiwiandrew

RE: How Much Longer On Checks?

Thu Oct 22, 2015 4:05 am

Quoting LAX772LR (Reply 43):
Cash is disgusting. I always feel like I have to wash my hands after touching it-- which is why I'd never use it in a restaurant anymore.

I know what you mean, I remember back when we used to use paper banknotes instead of plastic they were pretty revolting. I am sure that I read somewhere the old notes were supposedly hotbeds of infection.

Does the US still use actual paper banknotes ? (Sorry for going off subject but it's a loooooonnnnng time since I have been to your country - so I am a bit out of touch)
 
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Aaron747
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RE: How Much Longer On Checks?

Thu Oct 22, 2015 10:40 am

Quoting Okie (Reply 5):
If I get stopped at the light I usually roll my window down and ask him how his Corvette is doing.

Nice one 
Quoting 777Jet (Reply 1):
The system there.

LOL indeed.

Quoting LittleFokker (Thread starter):
But naturally, I needed to change the account number, get new debit cards and checks, and so on. This thought crossed my mind: how much longer are paper checks going to be a thing?

What a pain in the ass.

It's amazing how every country has its own deficiencies in banking. I have not seen a single check in 10 years in Japan, nobody would even know how to use one. That said, if you find a 24-hour ATM here, it's like finding the Holy Grail.  
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Kiwirob
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RE: How Much Longer On Checks?

Thu Oct 22, 2015 10:44 am

Quoting LittleFokker (Thread starter):
how much longer are paper checks going to be a thing?

In most first world countries they went the way of the dodo many years ago.

Quoting LittleFokker (Thread starter):
What's stopping them from being obsolete now?

Nothing except resistance to change. It's like adding sales tax to the price on the shelf, every other country does it except the US.

Quoting Airstud (Reply 20):
But I do mail checks to pay my three CapitalOne credit cards, my JCPenney card when I rarely have a balance on it, same for my Bloomingdale's card, Sinclair Oil, CenterPoint Energy, Express® Men, J Crew, Merrick Visa, State Farm Visa, Nordstrom, Discover, Xcel Energy, and BankAmericard.

Oh, and the aforementioned Chase card.


Oops, and my Citibank Executive World Elite card.




And my US Bank card.

You're one man with too many cards, or are you one of those people who use one card to pay oif the other and countiue the cycle of debt forever, I'm thinking Confessions of a Shopaholic lifestyle.

Quoting StarAC17 (Reply 42):
It will always be king.

In Norway cash has almost gone the way of the cheque, the only time I ever use cash is to pay for the wine lottery at work on Friday afternoon, everything else is paid for with a debit/credit card or online payment, in Norway there is no minimum amount.
 
Airstud
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RE: How Much Longer On Checks?

Thu Oct 22, 2015 1:04 pm

Quoting kiwirob (Reply 48):
You're one man with too many cards

Yeah no. As long as you're NOT the shopaholic type who maxes out his cards, then there's no such thing as "too many cards." In the U.S. your creditworthiness is more often than not determined by your FICO® score, and 30% of that is based on your credit utilization ratio. Last March I opened a new Discover® card and they authorized a $12,500 credit line for me. After the first statement cycle, when the account started to report to the major credit reporting agencies, I saw my score go up by 20 points.

I give each of my cards reasonable use (yes, sometimes a little bit unreasonable but if that's kept seldom then it's healthy) which makes the issuers interested in raising my credit limits. Which, properly managed, makes my score climb ever higher.
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