As we further progress into the age of technology, the use of paper products has dwindled, and for good reasons. Do any of you remember using the Dewey Decimal System to find a library book you wanted? It was an annoyingly painstaking process that was gratefully replaced with an online catalog that was easier and less time-consuming. Paying for your groceries with a debit or credit card rather than by breaking out the old checkbook is a win-win situation. Nowadays, standing behind the little old lady in the grocery store line who waits until the last minute to write out her check is a rare but annoying occurrence. With most of our transactions and records being processed digitally, this leads us to ask the question: will writing checks become a thing of the past?
Check Clearing For The 21st Century Act (Check 21)
In 2004, this act stated that banks no longer have to keep original checks. As an alternative, banks can simply store electronic images of checks, which is a more efficient process that cuts down on costs. The hassles previously associated with processing checks were reduced because businesses could now instantly convert customer checks and complete electronic fund transfers.
Businesses Are Using Direct Deposit Payments
Businesses paying their employees with paper checks are becoming more and more obsolete. Many businesses nowadays pay their employees using direct deposits, which avoids the hassles of processing checks. Employees have enthusiastically embraced direct deposits into their bank accounts because they avoid the hassle of going to the bank to deposit their checks.
Rent Payments Online
Many property management companies are now offering online payment portals for their renters. The days of walking up to the property management office to drop off rent checks may be coming to an end. However, not all private landlords have embraced this technology yet, so some renters might still be writing out paper checks. However, with the growing convenience of making payments online, writing out paper checks for rent may be as dated as cassette tapes soon.
Utility Payments Online
Many of us remember the days when we gathered with our roommates to calculate the monthly utility payments and exchange checks. Paying for your utilities by check could be further complicated when sending checks through the mail, which could arrive late and incur late fees. With the convenience of paying your bills online, you don’t have to worry about delays. Apps like Venmo also ease the process in paying your roommates the amount that they are owed for utilities.
Paper Checks Are Expensive
Have you recently tried to order checks from your banking institution? Purchasing paper checks is extremely expensive because banks have no reason to encourage you to use paper checks. Remember the Check 21 Act we just discussed? Banks save time and money by electronically processing check payments, so they do not want for you to use paper checks anymore.
Will checks become obsolete over the next decade? Only time will tell, but our payment solutions company credit card processing services so that your business continues to receive payments. With the increasing popularity of card payments, we offer the best payment processing services available. Contact us today to learn more.