Stop Paying by Check: Today, I’ll explain why we must discontinue the use of checks. This free payment mechanism is still extensively utilised in France. However, it is, to be honest, no longer appropriate for the present world! The problem of fraud, the availability of more acceptable payment methods, the intention of banks and the government to phase it out… The chequebook is no longer on the rise after decades of excellent and faithful service. But don’t worry, there are payment options available, and they are, above all, considerably safer.
Discover 7 good reasons to stop paying by check now.
1. Because checks are easy prey for fraudsters
Stop Paying by Check: In recent years, the check has had a dismal track record. Despite being much less popular than the bank card, it is the payment method with the highest rate of fraud! Be cautious; check frauds cost more than 500 million euros each year. Nothing surprise, say industry insiders; there are several security flaws. There is no secret code, no SMS code to secure the transaction, no dynamic cryptogram… The check has everything a fraudster is looking for: usurpation and an easy forgery! Especially because alternative forms of payment are getting more secure at the same time. The chequebook is therefore a ready-made prey item for scammers!
2. Because the check is a losing means of payment
Stop Paying by Check: Did you aware that our nation accounts for over 3/4 of all check transactions in Europe? We may honestly claim that the French are devoted to their chequebook. However, alternative forms of payment far outnumber checks and have done so for many years. Since 2003, the usage of the bank card has surpassed that of the chequebook, direct debits since 2010, and transfers since 2011! Since the early 2000s, the amount of checks utilised has declined about 4% every year. We even set a new low in 2020, with a -25 percent drop! And it’s not getting any better, with fresh generations becoming allergic to its usage. Our young people, on the whole, prefer more contemporary modes of payment (cards, mobile payment, etc.). No, the check is no longer fashionable…
3. Because there are safer and simpler alternatives
Stop Paying by Check: The usage of check books is becoming more obsolete as a result of far more current payment methods. You might, for example, make a payment in instalments a few years ago by signing multiple checks. Today, most of our merchants accept card payments in instalments, often free of charge. It’s lot easier, and there’s no fear of losing checks. Individual transactions are another illustration of how our values are evolving.
Nowadays, we would rather accept cash or a transfer, particularly if it is quick. Taking a check is no longer something we do on a regular basis. To be honest, we no longer have faith in this sort of business! Furthermore, emerging payment platforms such as Paylib between friends are not actually geared toward the chequebook. On the one hand, this programme makes money transfers much easier (friends, merchants). Above all, it helps you to avoid disclosing your banking information.
As a result, check payments are becoming less common in favour of alternative, more secure payment options. We only write checks in extremely narrow circumstances. For example, when you go to certain physicians who are still “traditional.” However, they are gradually being outfitted with card payment machines.
4. Because check cashing times are a problem
Stop Paying by Check: Aside from the chequebook fraud issues, it is the everyday administration of the company that is of concern. How many times have we been in financial problems as a result of a cheque that was deposited at the incorrect time? In this respect, keep in mind that a check may be cashed up to 1 year and 8 days after it was issued! It’s no surprise that this delay is an issue. Because a cheque deposited at the incorrect time might generate a major financial imbalance. And the ramifications might be severe, since you risk being barred from checking! This is seldom an issue with other forms of payment. Payments are deducted within a few days, if not immediately. There is no need to be concerned that the check will arrive while there is no money in the account.
5. Because the public authorities no longer want it
Stop Paying by Check: As previously stated, check fraud is on the rise in France. As a result, the government was forced to intervene in order to halt the bleeding. The plan established by the Department of Finance is clear. Priority should be given to more secure and sophisticated modes of payment, such as the bank card. To that purpose, the state has forcefully urged local governments to accept card payments. The payment for the canteen and the children’s activities have finally been upgraded!
Read more: Paying by Check: 8 Reasons to Keep Paying by Check in 2022
6. Because it’s expensive for the banks
Stop Paying by Check: You may not realise it, but one of the few services provided by your bank is free of charge. And for good reason: it is imposed by French legislation! In exchange, banks are under no duty to compensate current account holders… (these bankers are always winners!). Nonetheless, total chequebook management costs them 1 billion euros each year! As a result, banks have no incentive to encourage their clients to use this method of payment. Banks also provide entry-level products with books containing just 5 cheques! When you consider that a notebook has at least 40 pages… In short, you have recognised that this lobby would do all possible to prevent its usage in the future.
7. Because merchants are increasingly refusing checks
Stop Paying by Check: We all see it when we go shopping: shops are increasingly refusing to take checks. And there’s no need to shout; it’s their right! Indeed, retailers are only have to state on a display why they deny this mode of payment. They may even elect to accept checks, but only up to a certain amount. This piece of paper may only be accepted by merchants that are linked with an authorised management centre. Even if the business accepts checks, paying by check is a tremendous pain! Checks to be filled out, identification and necessary information to be verified… It’s embarrassingly clumsy. Especially when you’re at the grocery check-out.
Did you know that you may write a check on free paper?
Stop Paying by Check: Speaking of obligatory mentions, I will undoubtedly teach you something here. Do you know that it is not need to utilise a bank’s official check book to write a check?! As long as the required information is provided, you may do this check on free paper! These are the amounts stated in numbers and text. The bank’s, issuer’s, and beneficiary’s names. Bank information, location and date of payment, as well as the issuer’s signature Finally, the word “cheque” was written on the page. Every day, we discover something new.