A Brief Overview on Transactions made by Check Payments
Checks are basically signed instruments of exchange which allow people to pay another person or institution of a specified amount at a particular date. Most people prefer check payments because they do not need to bring cash, although there are modern options now like carrying credit cards or debit cards which are handy and can fit right into a slim wallet without the bulk of cash. People look into checks as a traditional or old-fashioned way of doing payments but it is still safer to carry checks than cash these days or send via mail.
Information Available in Checks
Checks will already have the following pre-printed information – name of financial institution, bank code number, address, number, and name of the account holder. You will just need to fill out the following details – date, recipient, amount, signature, and comment (optional).
Track Check Payments
When you issue checks for payments, it is wise to keep a register of your transactions so you can easily track your spending and payments in a single logbook. The only downside is that some vendors or establishments do not honor check payments anymore because major shopping malls, hotels, airlines, and convenience stores usually accept debit and credit cards or referred to as “plastics” which is the most popular way to make payments in this technologically driven world.
Issuing Checks
In order to issue checks, consumers need to open a bank account with a bank, loan institution, or credit union. Checks are usually bought from the bank or are offered by financial institutions to clients following a deposit. Bounced checks or otherwise known as rubber, hot, or returned checks cannot be processed and will incur fees amounting to over $20 to $50. The fees will usually differ depending from one association to another.
Bad Checks
When you issue so many bounced checks, retailers will no longer accept those as mode of payment. Bad checks may be due to frozen accounts, non-existent accounts, or even accounts that are found to be suspicious and having irregularities in transactions and are undergoing investigation. There are instances when con or scam artists will issue checks even if they really do not have bank accounts to begin with. The check may also bounce in cases like the person who signed the checked cancelled the transaction, bank has denied authorization, or the account holder has already passed away after issuing the check.
Encashing Checks
There is a fee for cashing checks and varies from one bank to another. The usual range will go from 1% to 5% and may depend primarily on the type of check cashed. You will need to wait for a day or two before you can cash your check. With check cashing services though, you can cash your checks almost instantly with fewer requirements and a fee somewhat close to what the bank requires.
There are other familiar types of payment method available today along with issuing check which includes money orders, debit or prepaid cards, credit cards, gift or traveler checks, and cold cash. People can now easily pay bills, send payments, or even send money to anyone, anytime, and anywhere in the world in just a few clicks.
