Do People Still Write Checks? Why They’re Still Used

The financial landscape has shifted from traditional paper transactions to an increasingly digital environment. Mobile applications, online banking platforms, and various electronic payment systems have become commonplace. This prompts a relevant question: do people still write checks? Technology continues to reshape how individuals and businesses manage financial interactions, emphasizing convenience and speed.

The Current Use of Checks

Checks continue to be a part of the payment ecosystem, though their prevalence has significantly diminished over the past decades. While not as common for everyday purchases, checks maintain a presence in specific financial contexts. Data indicates a steady decline in usage, with consumers increasingly opting for electronic payment methods. For example, the share of bills paid with checks by consumers dropped significantly between 2020 and 2024. Despite this decline, the United States has historically maintained a higher per-capita check usage compared to many other nations.

In 2021, checks still constituted 5.1% of all cashless payments in the U.S., reflecting their continued, albeit reduced, role. Checks are often associated with transactions of higher average dollar values. Businesses, for instance, still utilize checks for a notable portion of their transactions, particularly in business-to-business (B2B) dealings. This indicates that checks have carved out specific niches within the modern financial framework.

Why Checks Are Still Used

Checks persist as a payment method for several distinct reasons, catering to specific needs and preferences. One primary use is for large, infrequent payments where a physical record and a clear paper trail are often desired. This includes substantial transactions such as security deposits for rental agreements, down payments on homes, or payments to contractors for significant projects. The tangible nature of a check provides a sense of security and a verifiable record for both the payer and the payee.

Checks also remain a practical solution for payments to individuals or smaller businesses that may not have advanced digital payment infrastructure. Local service providers, independent contractors, or even personal monetary gifts are often facilitated through checks, especially when digital transfer options might incur fees or be inconvenient for the recipient. Certain institutional or government payments also frequently rely on paper checks. For example, some utility bills, tax payments, or refund disbursements from government agencies may still be issued or accepted in check form.

A segment of the population, particularly some older demographics, prefers traditional methods due to familiarity and a perceived level of trust or control. For these individuals, the process of writing a check is ingrained and offers comfort. Additionally, checks offer a unique security feature: the ability to stop payment on a check before it clears, which can be a safeguard in cases of dispute or fraud. This control over funds until the check is processed is a benefit not always available with instant digital transfers.

Reasons for Declining Check Use and Available Alternatives

The decline in check usage stems from several inherent disadvantages when compared to modern digital payment methods. Checks typically involve a lack of immediacy, as they can take several business days to clear and for funds to become available. This delay contrasts sharply with instant digital transactions. The physical handling of checks also presents an inconvenience, requiring individuals to carry checkbooks, mail payments, or visit a bank for deposits. For businesses, manual reconciliation of check payments is a time-consuming process.

Security concerns are another significant factor contributing to the decline. Paper checks are more susceptible to fraud, including check washing, counterfeiting, or theft. If a check falls into the wrong hands, sensitive account information can be compromised. Furthermore, there are associated costs, such as purchasing checkbooks or paying for postage, and for businesses, the median cost of issuing a paper check can range from approximately $2.01 to $4.00 per transaction.

In response to these drawbacks, numerous digital alternatives have emerged and gained widespread adoption. Debit and credit cards are commonly used for everyday purchases and online transactions, offering immediate payment and consumer protections. Online bill pay services provided by banks allow for recurring payments to utilities and other entities, streamlining the payment process directly from a bank account.

Electronic Funds Transfers (EFTs), including Automated Clearing House (ACH) payments, facilitate direct deposits for payroll, recurring bill payments, and business-to-business transactions. ACH payments are generally much more cost-effective for businesses, often costing around $0.40 per transaction, and can settle within one to three business days, with same-day options available. Peer-to-peer (P2P) payment applications like Venmo, Zelle, and PayPal allow for instant transfers between individuals using only a phone number or email address. Digital wallets, such as Apple Pay and Google Pay, enable contactless payments in stores and secure online transactions, further reducing the need for physical payment instruments.

What’s Next for Checks

The trajectory for checks indicates a continued decline in general use across most payment scenarios. As digital payment technologies become more sophisticated and widely adopted, the convenience, speed, and enhanced security they offer will likely further diminish the need for paper checks in many transactions. However, checks are not expected to disappear entirely from the financial landscape.

Checks will likely retain a niche role for specific transaction types or for certain demographics who prefer their traditional nature or the unique benefits they offer, such as the ability to stop payment or provide a physical record. The enduring presence of checks in B2B transactions and for high-value, less frequent payments suggests their continued, albeit limited, utility. While digital payments will undoubtedly dominate the future, checks will likely persist as a specialized, reduced payment option.