Check Payments in Various Industries
Target recently made the decision to stop accepting personal checks as a form of payment, raising the question of why it took so long. Check fraud has been on the rise, with costs for businesses to process each check amounting to at least a dollar. Interestingly, many young adults have never had the need to write a check.
Despite the decline in check usage, there are still industries where checks remain a prevalent form of payment. According to data from the Federal Reserve Bank of Atlanta, certain sectors heavily rely on check payments:
- Contractors: Electricians and plumbers receive 25% of their payments via check.
- Charitable and religious organizations: 22% of their payments come in the form of checks.
- Landlords, government taxing authorities, and professional-service firms: These entities also receive a significant percentage of payments through checks.
Interestingly, there are specific pockets of commerce where writing checks is not just common but required. Some examples include homeowners’ association dues, haircuts, dog shows, and long-term care insurance policies.
Despite the convenience of digital payment methods, some individuals still prefer check payments for various reasons. These preferences can be driven by emotions, fees associated with other payment methods, or even fear of potential security risks.
