Question about bank checks

[danellis]

I write one for the electric company every month because I refuse to pay fees to pay them online.

Don't you have to pay a fee for writing a cheque as well? And there would be a cost to mail them or take them to the electric company in person, wouldn't there?

No bank fees for writing checks in the US.

Arizona Public Service (aka the electric company) also does not charge a fee for checks. They do, however, want to charge me $3.95 for paying online each month.

Since it only costs me $0.48 to mail the check, then I will continue to mail them a check every month.

Interesting conversation, or side to the main one. In the UK most companies (utilities suppliers are notorious for it) not only don't charge for online banking, but will generally give a discount or doing so because they then don't have to pay for printing and posting invoice, statements, and the like.

As for uses of cheques, I bet that birthday and Christmas presents must be one of the major uses these days.

dJE

 

[Sector 7]

^Thus, the increase in Gift Card sales.

 

[MacLeod]

Don't you have to pay a fee for writing a cheque as well? And there would be a cost to mail them or take them to the electric company in person, wouldn't there?

No bank fees for writing checks in the US.

Arizona Public Service (aka the electric company) also does not charge a fee for checks. They do, however, want to charge me $3.95 for paying online each month.

Since it only costs me $0.48 to mail the check, then I will continue to mail them a check every month.

Interesting conversation, or side to the main one. In the UK most companies (utilities suppliers are notorious for it) not only don't charge for online banking, but will generally give a discount or doing so because they then don't have to pay for printing and posting invoice, statements, and the like.

As for uses of cheques, I bet that birthday and Christmas presents must be one of the major uses these days.

dJE

Yeah comapnies much prefer people to pay via Direct Debit/Standing Order, and some even let you select the day the payment goes out.

The only cheque I write these days is to pay my garage bill for things like my MOT certificate or any repairs that are needed.

Cheques are virtually dead in the UK, most shops will no longer accept them as a means of payment.

 

[Cap'n Crunch]

I only use checks to pay my electric and rent. Like someone already mentioned, my electric company also charges a fee to pay online, but the office is on my way to work so I just go to the drive thru and drop the check off. My apartment charges a $28(!) "convenience fee" to pay online, which is the highest I've ever seen, and the only option other than check is something called an e-money order, which seems too complicated for me to bother with, so I just use a check.

It seems that the only stores in the US that take checks anymore are grocery stores & maybe some big box stores. There may be others, but I'm not entirely sure since I always use my card when shopping.

 

[FPAlpha]

To all US citizens:

How is it in this day and age that you still need to pay by cheque for regular monthly payments like rent, power or phone/internet bills?

Here in Germany it's almost unheard of to pay by cheque.. everybody i know of has enabled a standing order with their bank to transfer a certain sum of money (usually rent as that's not bound to change that often) to a certain account and in the case of variable bills like the phone the company has permission to withdraw the amount of money for that month's bill from the account (as it's usually automated nowadays there's also very little errors on either side happening).

I usually check my account online at the start of the month to see if everything was paid as it should be and then every few days a follow up check to see what happens as i buy stuff and pay by credit/bank card.

It just strikes me as odd to use such an outdated method of payment in the digital age.

What gives? Is it a cultural thing, habit or even a law?

 

[Robert Maxwell]

To all US citizens:

How is it in this day and age that you still need to pay by cheque for regular monthly payments like rent, power or phone/internet bills?

People already explained this: because online and phone payment systems often charge fees whereas paying by check does not. Why pay an extra $2-5 a month per bill when you don't have to?

Here in Germany it's almost unheard of to pay by cheque.. everybody i know of has enabled a standing order with their bank to transfer a certain sum of money (usually rent as that's not bound to change that often) to a certain account and in the case of variable bills like the phone the company has permission to withdraw the amount of money for that month's bill from the account (as it's usually automated nowadays there's also very little errors on either side happening).

Bank-to-bank transfers are very expensive here. Unless it is done as a draft (which means it works the same way as a check, except electronic), direct bank transfers are a terrible option here.

A lot of people use debit cards which draw from your checking account and are essentially a swipable and online-friendly alternative to checks.

It just strikes me as odd to use such an outdated method of payment in the digital age.

What gives? Is it a cultural thing, habit or even a law?

It has more to do with shitty bank regulation here. The government would have to force the issue, and has chosen not to. Most people don't like to change something that's worked just fine for years and years.

 

[MacLeod]

To all US citizens:

How is it in this day and age that you still need to pay by cheque for regular monthly payments like rent, power or phone/internet bills?

People already explained this: because online and phone payment systems often charge fees whereas paying by check does not. Why pay an extra $2-5 a month per bill when you don't have to?

Here in Germany it's almost unheard of to pay by cheque.. everybody i know of has enabled a standing order with their bank to transfer a certain sum of money (usually rent as that's not bound to change that often) to a certain account and in the case of variable bills like the phone the company has permission to withdraw the amount of money for that month's bill from the account (as it's usually automated nowadays there's also very little errors on either side happening).

Bank-to-bank transfers are very expensive here. Unless it is done as a draft (which means it works the same way as a check, except electronic), direct bank transfers are a terrible option here.

A lot of people use debit cards which draw from your checking account and are essentially a swipable and online-friendly alternative to checks.

It just strikes me as odd to use such an outdated method of payment in the digital age.

What gives? Is it a cultural thing, habit or even a law?

It has more to do with shitty bank regulation here. The government would have to force the issue, and has chosen not to. Most people don't like to change something that's worked just fine for years and years.

Well you could say the same thing about card technology, the UK and other places moved onto Chip n Pin tech over a decade ago, as it's more secure than the old fashioned Swipe n Sign Cards, one of the reasons why the swipe strip is still on there is so you can use your credit/debit card in countries which haven't yet adopted CnP technology.

 

[Robert Maxwell]

To all US citizens:

How is it in this day and age that you still need to pay by cheque for regular monthly payments like rent, power or phone/internet bills?

People already explained this: because online and phone payment systems often charge fees whereas paying by check does not. Why pay an extra $2-5 a month per bill when you don't have to?

Bank-to-bank transfers are very expensive here. Unless it is done as a draft (which means it works the same way as a check, except electronic), direct bank transfers are a terrible option here.

A lot of people use debit cards which draw from your checking account and are essentially a swipable and online-friendly alternative to checks.

It just strikes me as odd to use such an outdated method of payment in the digital age.

What gives? Is it a cultural thing, habit or even a law?

It has more to do with shitty bank regulation here. The government would have to force the issue, and has chosen not to. Most people don't like to change something that's worked just fine for years and years.

Well you could say the same thing about card technology, the UK and other places moved onto Chip n Pin tech over a decade ago, as it's more secure than the old fashioned Swipe n Sign Cards, one of the reasons why the swipe strip is still on there is so you can use your credit/debit card in countries which haven't yet adopted CnP technology.

The US actually is forcing transition to CnP, but this has no effect on transactions that don't involve a swipe card (such as checks or bank-to-bank transfers.)

 

[publiusr]

I like to use money orders. You don't have to play beat the bank that way.

even that has drawbacks.

There was a company called "Star Tech" in Dunlap TN--the main competitor to New Eye and Intergalactic Trading Co as some of you may remember (GTC only recently closing).

Star Tech, PO Box 456, Dunlap, TN 37327 USA.

I sent an order for about 80 bucks and got nothing. I got an e-mail in reply and the wrier said they had problem with a secretary stealing. I went to the post office--no help. The bank where the money order was cashed wouldn't tell me anything.

Worse, I sent off a money order--which was lost. A replacement was sent. Years later, and I mean years--someone found the original and cashed it.

The damn post office sent me a bill.

 

[MacLeod]

People already explained this: because online and phone payment systems often charge fees whereas paying by check does not. Why pay an extra $2-5 a month per bill when you don't have to?

Bank-to-bank transfers are very expensive here. Unless it is done as a draft (which means it works the same way as a check, except electronic), direct bank transfers are a terrible option here.

A lot of people use debit cards which draw from your checking account and are essentially a swipable and online-friendly alternative to checks.

It has more to do with shitty bank regulation here. The government would have to force the issue, and has chosen not to. Most people don't like to change something that's worked just fine for years and years.

Well you could say the same thing about card technology, the UK and other places moved onto Chip n Pin tech over a decade ago, as it's more secure than the old fashioned Swipe n Sign Cards, one of the reasons why the swipe strip is still on there is so you can use your credit/debit card in countries which haven't yet adopted CnP technology.

The US actually is forcing transition to CnP, but this has no effect on transactions that don't involve a swipe card (such as checks or bank-to-bank transfers.)

Yes I know that, but it's about a decade behind some places in adopting CnP cards.

Cheques don't incur a fee in the UK unless you cancel one, you can transfer money between accounts even at different banks almost instanly in the UK for no fee.

And just because something has worked and worked for years doesn't mean it can be improved or changed. I suppose part of it is getting over the initial faith that the system would work, in this case it's a proven system given that places like the UK already have it. Like anything change can take time, i.e. how goes the change to the metric system in the US?

Sometimes politicans have to bite the bullet and force through change or nothing would get done. But do you think virtual instant bank to bank transfers for free would benefit consumers in the USA?

 

[Robert Maxwell]

Well you could say the same thing about card technology, the UK and other places moved onto Chip n Pin tech over a decade ago, as it's more secure than the old fashioned Swipe n Sign Cards, one of the reasons why the swipe strip is still on there is so you can use your credit/debit card in countries which haven't yet adopted CnP technology.

The US actually is forcing transition to CnP, but this has no effect on transactions that don't involve a swipe card (such as checks or bank-to-bank transfers.)

Yes I know that, but it's about a decade behind some places in adopting CnP cards.

Cheques don't incur a fee in the UK unless you cancel one, you can transfer money between accounts even at different banks almost instanly in the UK for no fee.

And just because something has worked and worked for years doesn't mean it can be improved or changed. I suppose part of it is getting over the initial faith that the system would work, in this case it's a proven system given that places like the UK already have it. Like anything change can take time, i.e. how goes the change to the metric system in the US?

Sometimes politicans have to bite the bullet and force through change or nothing would get done. But do you think virtual instant bank to bank transfers for free would benefit consumers in the USA?

You don't have to tell me our system is stupid and antiquated; I hate it. I think instant bank-to-bank transfers with no fees would be awesome. But it's not up to me, and our banks are greedy and our politicians serve at their pleasure.

 

[Mr. Laser Beam]

About the transition to Chip and PIN: I wish we'd go that far. Unfortunately, the US is only going to Chip and Signature, which doesn't seem quite as secure. Still, it's better than the magnetic stripe.

 

[RoJoHen]

Like anything change can take time, i.e. how goes the change to the metric system in the US?

I didn't realize we were actively trying to make that change.

About the transition to Chip and PIN: I wish we'd go that far. Unfortunately, the US is only going to Chip and Signature, which doesn't seem quite as secure. Still, it's better than the magnetic stripe.

Speaking just from the business side of things, it would be a huge ordeal to have to change out our POS systems. We would have to replace everything, and it would end up costing our company tens of thousands of dollars to make that change.

 

[JoeZhang]

I cannot remember the last time I used my cheque book - even when I used a plumber, he took instant electronic payment which generated a PDF receipt straight to my email account.

 

[Mr. Laser Beam]

About the transition to Chip and PIN: I wish we'd go that far. Unfortunately, the US is only going to Chip and Signature, which doesn't seem quite as secure. Still, it's better than the magnetic stripe.

Speaking just from the business side of things, it would be a huge ordeal to have to change out our POS systems. We would have to replace everything, and it would end up costing our company tens of thousands of dollars to make that change.

I hate to sound harsh, but there really is no choice. Any business that does not make the change to chip/whatever, will be on the hook for all CC fraud (after the deadline passes, which IIRC is sometime this October). That would probably cost even more than simply changing POS terminals.

 

[RoJoHen]

I mean, it's not like the money is coming out of my pocket. I'm just saying it will be a really annoying and expensive change for companies to make.

 

[MacLeod]

Don't companies update their EPOS systems over time anyway. And it's not like it's a brand new system so has been on the market for years, most CnP terminals have a swipe reader as well, not to mention many CnP terminals have NFC tech.

Sure their is a cost factor, however that being said with CnP cards being more secure than Swipe and Sign. Given the choice of the two which would you as a consumer go for? If you go for CnP and one store takes it and another doesn't I think I would go with the one that accept CnP.

So stores could lose trade but not adopting it.