Are Checks Free? The True Cost of Ordering Checks
Beyond the bank: Understand the true expenses of physical checks and explore cost-effective solutions and digital payment options.
Many individuals assume checks come without cost. However, the expense structure for obtaining and using checks has changed considerably with the rise of digital payment solutions. This article explores the costs involved and introduces modern alternatives.
Understanding Check Pricing
While some financial institutions might offer a limited quantity of “free” checks, perhaps for new accounts or certain premium account tiers, this offering is not universal. The cost of checks is influenced by financial institution policies, quantity ordered, and design complexity; basic options cost less than custom ones.
A standard box of checks might range from approximately 38 to 65 cents per single check when ordered directly through a bank. Conversely, external providers typically charge between 5 and 24 cents per single check. Checks are not free due to production costs like printing, security features, and administrative overhead.
Sources for Obtaining Checks
Consumers have several primary avenues for acquiring physical checks, each with its own conveniences and cost considerations. Most financial institutions offer check ordering services, which can typically be accessed in person, over the phone, or through their online banking portals. Ordering directly from a bank often provides convenience, as they already possess the necessary account information.
Independent online check printing companies represent another common source, frequently offering a more cost-effective alternative. When using these services, customers must accurately provide their bank account and routing numbers to ensure proper printing. Some larger office supply retailers also provide check printing services, available either in-store or through their online platforms. Regardless of the source, customers will always need their bank account number and routing number to place a check order.
Strategies to Reduce Check Expenses
Consumers can take several steps to minimize or avoid physical check expenses. One strategy involves ordering smaller quantities of checks if they are not used frequently, which helps reduce the upfront cost. Opting for basic check designs instead of customized ones can also lead to savings, as intricate designs or added features often increase the price.
Inquire about bank promotions, as some account types or new account offers might include free checks. Comparing prices among online check printing companies can yield significant savings, and ultimately, embracing digital payment methods can eliminate the need to purchase checks altogether.
Alternatives to Writing Checks
Several convenient and often cost-free alternatives exist for managing payments without relying on physical checks. Online bill pay services, typically provided by banks, allow users to schedule payments to individuals or companies. These services often handle the electronic disbursement of funds, or occasionally mail a physical check on your behalf, usually without a direct fee to the user.
Electronic Funds Transfers (EFTs), including Automated Clearing House (ACH) payments, facilitate direct transfers between bank accounts. These are commonly used for direct deposits, recurring bills, and peer-to-peer payments through services like Zelle, which are generally free for consumers. ACH transfers are considerably more cost-effective than checks, with median costs ranging from $0.26 to $0.50 per transaction, compared to $2.01 to $4.00 for checks.
Debit and credit cards offer widespread acceptance and convenience for everyday purchases and bill payments. Debit cards are often considered safer than checks due to enhanced security features and fraud protection. While convenient, some credit card transactions or instant transfers via payment apps like Venmo and PayPal may incur fees.
For situations requiring a secure payment when a personal check is not accepted, money orders and cashier’s checks serve as alternatives. Money orders typically cost between $1 and $5 and often have a maximum limit, usually around $1,000. Cashier’s checks, guaranteed by the issuing bank, are generally used for larger sums and can cost between $10 and $20. While secure, these options do come with their own fees.