How Many Checks a Year Do People and Businesses Write?

Paper checks, once a universal method for financial transactions, have seen a significant shift in their use. The question of how many checks are written annually does not yield a single, definitive global number. This article explores the general prevalence and trends of check usage in modern times, examining both personal and business contexts.

The Current State of Check Usage

The financial landscape has experienced a broad decline in paper check transactions over time, largely influenced by advancements in technology. Check usage in the United States plummeted by 75% between 2000 and 2021. In 2022, checks constituted only about 4% of all U.S. transactions, illustrating a substantial move away from this traditional payment method. Despite this overall decrease, paper checks continue to fulfill specific roles within the payment ecosystem. The federal government, for example, is actively working to phase out paper checks for disbursements, targeting a full transition to electronic payments by September 30, 2025.

While the general trend points to reduced reliance on checks, recent data indicates a surge in business check usage in 2024, with 91% of businesses reporting use, an increase from 75% in 2023. This unexpected rise is often linked to instances of fraud, as checks are disproportionately involved in payment fraud schemes. This highlights that even as digital alternatives become more prevalent, the security vulnerabilities of paper checks remain a concern.

Individual Check Writing Habits

The average person’s interaction with paper checks has substantially changed, with a pronounced shift towards digital payment methods for daily transactions. For bill payments, shopping, and peer-to-peer transfers, digital options are now overwhelmingly preferred. In 2024, over 90% of consumers indicated a preference for payment methods other than checks for their bills, with only 6% opting to pay by check. Furthermore, from 2015 to 2024, the proportion of consumer transactions made via check decreased from 6% to 2.5%.

Despite this widespread transition, individuals still utilize checks for specific purposes. These niche situations include paying rent to landlords who do not accept digital payments, providing monetary gifts in a more secure format than mailing cash, and making payments to charitable organizations or small businesses that lack digital processing capabilities. Checks are also sometimes used for larger purchases like tuition or taxes, where they provide a tangible record of the transaction. Some individuals continue to use checks due to a perceived sense of security and control, or to avoid credit card processing fees, which can range from 1.5% to 3.5% of the transaction amount. Older demographics are more inclined to use checks compared to younger generations.

Business Check Transactions

Businesses, like individuals, have largely transitioned to electronic payments for many operational needs, such as payroll and vendor disbursements. Nevertheless, paper checks maintain a presence in certain business-to-business (B2B) transactions, particularly among smaller enterprises. The continued use of checks in these scenarios is often attributed to familiarity with established accounting practices, a perception that checks are a universally accepted payment method, and sometimes a misconception that checks are a cost-free option.

Operational reasons also contribute to their persistence, including the need for a clear record-keeping trail and the ease of reconciliation for some legacy systems. The actual cost for businesses to process a paper check, encompassing printing, postage, and labor, can range from $4 to $20 per check. Although B2B check usage has seen a substantial decline, dropping from 80% in 2004 to 33% in 2022, some recent reports suggest that a notable portion of businesses, over half, still make more than a quarter of their vendor payments by check. This indicates that while digital adoption is growing, checks remain a component of the business payment landscape.

The Rise of Digital Payments

The widespread adoption of digital payment alternatives is the primary factor driving the decline in check usage. These modern methods offer convenience, speed, and enhanced security. Common digital payment solutions include online banking bill pay services, debit and credit cards, and mobile payment applications like Apple Pay, Google Pay, Venmo, Cash App, PayPal, and Zelle.

Electronic Funds Transfers (EFTs), including Automated Clearing House (ACH) payments, also play a significant role. Digital wallets have emerged as the most popular online payment method, accounting for 37% of online transactions in 2023, with projections to reach 52% by 2027. These digital alternatives streamline transaction processes, reduce operational costs, and provide faster access to funds.