Check writing is quickly becoming a thing of the past. It used to feel so official flicking your pen across a personal check that made even the smallest transactions feel important, because you had to take the time to sit down and write down a recipient’s name, dollar (and cent) amount, then sign your name away. However, we’re entering a time where things that require you to take the time to sit down and physically do anything are replaced by technology that does it for you, case and point: RENTMOOLA.
New and more convenient alternatives to check writing are popping up, and according to a 2013 Federal Reserve study, payments by check have already dropped more than 50 percent from 2000 to 2012, while electronic and card payments TRIPLED! Also, nearly 38 percent of respondents in a 2014 GOBankingRates poll have admitted that they’ve never once used their checkbooks!
Additionally, there’s been a fivefold increase in the Google search: “how to write a check” over the last 10 years, according to an April article in The Washington Post.
So how can this steep decline be explained? Here are the top five reasons:
1. There’s an app for that. Checks are rendered nearly obsolete when peer-to-peer money exchanging and payment come into the picture. Smartphone apps and responsive payment platforms (like RentMoola) allow users to easily transfer money from one account to another. They can do it at any time, from anywhere, and don’t have to wait in line at a bank or track down their landlord.
2. Online shopping. So hot right now. Mobile technology has pushed out checks from the point of sale. Major brands such as Whole Foods Market, Old Navy, Gap and Lululemon Athletica have eschewed checks, while most online retailers (i.e. Amazon.com) don’t offer checks at all as a payment option. Checks take time and money to process, so more stores and businesses are introducing tablet and smartphone based payment options at the cash register.
3. Online payments are rewarding. Referred to as “eChecking” or “green checking,” an increasing number of brick-and-mortar banks and credit unions are pushing paperless checking to save money and conserve trees. Customers might be swayed to make the switch with the added bonus of earning a higher interest rate on balances or zero fees for giving up traditional checking. On top of those incentives, while using platforms such as RentMoola, members are rewarded with MoolaPerks which give them discounts to brands, products and services that they love! Learn more about MoolaPerks here, sign up is free!
4. Checks are a dying form of payment. As consumers continue to embrace these new, convenient banking technologies, traditional check writing has naturally started to die off with each passing generation. The 2014 GOBankingRates poll shed light on this pattern: Over 60 percent of respondents ages 18 to 24 said they never write checks, compared to roughly 75 percent of people ages 55 and up who still go the paper route.
5. Paper checks are a liability. While having a paper trail is great for documentation purposes, checks open up a host of potential security issues. A checkbook can be lost, giving anyone with a thieving urge to forge a payment with your account and routing numbers at their full disposal.