7 Reasons Why the Cheque is Still Alive

Banking chores used to take up a lot of time. Thanks to online banking, however, things have become doubly simpler. It has never been easier to pay your bills or send money. But despite all of its benefits, a lot of people continue to write cheques on a regular basis. Although using personal cheques cannot match the speed and convenience of online banking, it does come with its own set of advantages and disadvantages. Here are seven reasons why cheques are here to stay.

1) Preferred method

No matter how difficult it is for some people to believe, many still prefer cheque payments. Online banking might be more convenient, but the elderly population tends to stick to their cheque-writing habits. The sense of familiarity and assurance afforded by writing cheques might never go away, so it’s time to embrace the fact that cheques will remain relevant in the years to come.

2) Postpone withdrawals

Paying online involves the immediate transfer of funds from your account to that of the recipient. This appears great, especially in a world where everything seems to be instant. But what if you need to make a payment but don’t have the funds for it yet? This is where cheques have the upper hand. Cheques require a few days to process, which means you have time to acquire funds but still proceed with the transaction. Of course, this practice should only be done if you’re certain that you’ll have enough money on time to cover your purchase. This is why cheques are so popular among small businesses as they don’t have to worry about emptying their cash reserves.

3) Cancel payments

For the most part, you cannot cancel your payments when using online transfers or money orders. Once the payment is processed, there’s no way for you to stop it. With cheques, however, all you need is call the bank if there’s a need to cancel the payment. This proves handy in situations where you issue a personal cheque to purchase a product but upon arrival, the product is damaged. You can stop the cheque and have the vendor take back the product.

4) Pay people without bank accounts

It can be annoying to get the bank account information of the vendor and register it online before you can transfer funds. By using cheques, you don’t have to deal with this problem. In fact, you can even pay people who have no bank accounts at all. This may look like a small thing, but it can save you a lot of time.

5) Monitor your transactions

Keeping track of all your transactions can be difficult if you use different modes of payment. When you issue cheques, everything is recorded in your bank account statement. Most banks now allow clients to view and download images of past cheques, which means a lot for your recordkeeping efforts. Imagine dealing with a legal dispute. Getting a copy of the issued cheque gives you a legal proof of your past transactions. The built-in paper trail that comes with issuing cheques also proves beneficial for small businesses for easier monitoring of transactions.

6) Control your expenses

When spending money, the last thing you want is to feel helpless. It can be frustrating when you feel like you don’t have any sort of control over your expenses. Cheques give you the opportunity to be the first mover in the payment process. While online banking allows you to stay on top of all your transactions, costly problems can still arise. Asking the bank to issue a paper cheque for a recurring payment appears convenient, but there are times when the bank might fail to do so in a timely manner, thus leading to an overdraft. Writing a cheque yourself means you don’t have to rely on a third party to facilitate the payment process.

7) Save money on fees

Credit card processing fees can pile up without you realizing it. This is precisely the reason why many businesses offer discounts to consumers who pay with cash or a personal cheque. It’s no surprise that a lot of merchants try to steer clear of the plastic as much as possible because of the sizeable savings they can enjoy on processing fees. This creates a win-win situation for both businesses and consumers.

If you think about it, having a physical status on your funds always ready at hand proves better than the convenience offered by online banking. Chequebooks never go offline. You can use them even when you’re in a remote location without Wi-Fi. This gives you total control over your expenses, something that newer payment options cannot match. While it has seen a tremendous decline over the past couple of decades, perhaps it’s safe to say that cheques will remain alive and kicking for a long time.

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