A check is used as one form of making or receiving payments. It has both advantages and disadvantages when judged against other forms of payment.
The main advantages of a check are as follows:
• You do not need to carry a lot of cash with you
• There is a delay in the payment being taken from your account
• It is the best way to send payment by post
• It is an accepted payment in most stores and businesses
The main disadvantages of a check are as follows:
• If you are receiving the check it can take up to a week to clear
• Some smaller stores may refuse payments by check
• If someone steals your check book it is easy for them to steal money from your account
• Checks can be tampered with and the amount can be changed on the check
• People who do not have a bank account cannot cash a check
Checks certainly have their uses as a valid form of payment and this is best shown when you send money via the post. If you include cash in the form of notes then if someone intercepts the mail then they can easily steal the money. The recipient could also deny they have received the money even if they actually have. Whereas if you sent a check the recipient has to cash it in order to receive the money and so you will always know they have successfully received the check.
However the delay of payments being cleared when using a check turns a lot of people off as they prefer the instant results of paying by cash or bank transfers.
The main advantages of a check are as follows:
• You do not need to carry a lot of cash with you
• There is a delay in the payment being taken from your account
• It is the best way to send payment by post
• It is an accepted payment in most stores and businesses
The main disadvantages of a check are as follows:
• If you are receiving the check it can take up to a week to clear
• Some smaller stores may refuse payments by check
• If someone steals your check book it is easy for them to steal money from your account
• Checks can be tampered with and the amount can be changed on the check
• People who do not have a bank account cannot cash a check
Checks certainly have their uses as a valid form of payment and this is best shown when you send money via the post. If you include cash in the form of notes then if someone intercepts the mail then they can easily steal the money. The recipient could also deny they have received the money even if they actually have. Whereas if you sent a check the recipient has to cash it in order to receive the money and so you will always know they have successfully received the check.
However the delay of payments being cleared when using a check turns a lot of people off as they prefer the instant results of paying by cash or bank transfers.