Checkless … Should You? Do You?

Checkless … Should You? Do You?

Checkless … Should You? Do You? It’s an excellent question.

In one word: don’t.

You may be scratching your head, thinking: Using checks is so out-of-date. Why would money expert and author Pat Williams say, “Don’t?”

I’m glad you thought that.

I do not recommend going "checkless” because:

 If you choose to only order items using  a bank and credit card and only order  items online with a credit card, you open yourself up to fraud possibilities.

Now you may be wondering, How could that be?

I’m so glad you asked. Here’s why: If someone or a company claims you did not pay a bill  and you paid with a paper check, a trail has been created that is far more extensive than what a credit charge on your statement reveals. A statement that simply says the amount of the charge and the entity that charged it—sometimes there’s a phone number on your statement. Sometimes the “entity” is someone or a company you’ve never heard of.

When a check is endorsed and deposited to a bank account, a trail is created that is “bank coded” … when deposited, A code that is not common to most.

When a check is deposited, a digital image of it is created by the bank that receives it. It then sends the image to the paying bank for verification and fund transfer. The funds are subject to a "hold," meaning they are credited to your account but not yet available for withdrawal, a process governed by the Expedited Funds Availability Act (Regulation CC). Typically, the bank must make some funds, such as $225, available within the next business day, with the rest available by the second business day.

Holds can be extended for larger checks, new accounts, or suspected fraud. It is wise for you to know if there are any restrictions on amount size. With everything on computers, most checks clear within the day.

With the increased levels of hacking and fraud, you want to know what protection you have. Large amounts are being funneled from credit card accounts by credit card thieves. Most credit cards will limit your loss to $50. But, and it is a huge BUT, I am seeing banks not covering large transfers via a card. With your signature on a check that can be verified that IT IS NOT YOURS, you are covered.

There are times you should be writing checks . Just saying …

Patricia Lane Williams is a retired CPA and has worked with thousands of men and women sounding the warnings. She is the author of the Amazon bestseller, Money: Get It. Save It. Grow It … Before Debt Steals It.
Her website is www.PatWilliamsAuthor.com.