Our rapidly changing world has come to depend on the ease of digital payment exchanges between consumers and merchants. Yet, a few unforseen road bumps have shifted the economic landscape, and check utilization is creating better opportunities for individuals, freelancers, and small businesses to cut costs and safeguard secure financial transactions.
COVID-19 has been a gamechanger for the job market and businesses in particular. The slumping employment sector spiked the freelancers market, which increased the need for fee-less payment solutions and state-mandated closures heavily impacted business revenue. This caused credit card companies to take a good look at increasing merchant fees in an effort to recover from the financial crisis.
The shifting business world means that low/no cost payment methods are needed now more than ever, and consumers should make sure that they have checks on hand to successfully complete the likely required payment processes this new era of being all grown up requires.
The Return of the Check
In a world looking to recover from the coronavirus pandemic, the return of checks might just be what small businesses need to gain a competitive advantage in the oncoming economic bounceback. Small businesses make up 99.9% of the U.S. business pool, and with potentially rising merchant fees, the booming micro and small business segments being driven by millennials are looking for ways to diversify their payment options while keeping costs low.
Along with processing fees, businesses must manage chargebacks, equipment fees, monthly minimums, associated software costs, and even statement fees. It’s no wonder why many of America’s small businesses may make a massive migration away from traditional credit card payments and pursue lean yet trusted payment options such as checks.
Paying by Check May Help You Avoid Extra Processing Fees
In the post-pandemic era, businesses will be sitting down to mull over how they can optimize their spending, and tossing out credit card processing services for a cash or check only policy might be a significant money-saving opportunity for vendors. Companies may also add their own transaction fees or markup items to help cover costs and break even. Consumers should be aware of extra credit card charges that come their way as well. Memberships and pay-to-use fees can easily be missed on credit card statements and cash exchange apps. For those that don’t enjoy ferrying wads of cash, carrying a checkbook instead will help consumers avoid extra fees without worrying about losing untraceable banknotes.
Checks Are a Safer Way to Pay for Large Transactions
Using a check is a safer way to spend and is useful in conducting large purchases such as buying a house, car or paying other large sums. There are also a whole host of businesses that accept only checks or cash, like contractors, landscapers, government entities, or private schools. Paying by check also allows funds to be tracked and is an excellent way to keep a record of spending and monitor what bills have been paid.
Adding a checkbook to your complete set of payment options will ensure that all bases are covered when it comes time to spend. Using money orders and cashier’s checks can be both costly and time-consuming, so making sure to have a checkbook on hand will help to cover all pertinent transactions adulthood requires.