Checks were and are used today in order to make payments to other people and establishments in the place of actual cash. The owner would write a predetermined amount of money and the receiver's name on to the check that they wished to be paid to another person or establishment. This check is then cashed by the receiving body and once cleared materializes as money in the receiver's bank account.
Some of the problems and limitations with checks are as follows:
In order to cash a check, the receiver needs to travel to their local bank, wait in line, cash the check with the clerk and wait three to five days for it to clear. For some people, it may just be easier to use cash or online banking in order to make payments. Of course, this varies depending on who the payments are being made to.
Another problem with checks is that there is the chance of criminal activity and theft occurring. For example, some fraudsters may forge signatures or use erasable pens in order to change the amounts specified on checks. This makes them potential less secure than cash in some ways.
In the modern age, a lot of people prefer to do all of their banking online instead. This is because the technology required to do it is much more readily available today. In addition to this, the security measures used are of a higher standard that that associated with using checks.
Some of the problems and limitations with checks are as follows:
- Time consuming
In order to cash a check, the receiver needs to travel to their local bank, wait in line, cash the check with the clerk and wait three to five days for it to clear. For some people, it may just be easier to use cash or online banking in order to make payments. Of course, this varies depending on who the payments are being made to.
- Potential fraud and theft
Another problem with checks is that there is the chance of criminal activity and theft occurring. For example, some fraudsters may forge signatures or use erasable pens in order to change the amounts specified on checks. This makes them potential less secure than cash in some ways.
- Out of date
In the modern age, a lot of people prefer to do all of their banking online instead. This is because the technology required to do it is much more readily available today. In addition to this, the security measures used are of a higher standard that that associated with using checks.