How Many Checks Does the Average American Write Each Year?

While electronic payment methods increasingly dominate financial transactions, paper checks continue to hold a role within the American financial landscape. Understanding their current usage and the underlying reasons provides insight into the ongoing evolution of payment systems.

Current Check Usage by Americans

The average American consumer writes approximately three checks per month, equating to about 36 checks annually. This figure, reported by the Federal Reserve Bank of Atlanta, reflects consumer payment habits. This number focuses on checks written by consumers, not business-to-business transactions. The United States has maintained a higher per-capita check usage compared to many other developed countries, with data from 2020 showing around 30.13 checks per capita.

Factors Influencing Check Usage

The current state of check usage is shaped by both the widespread adoption of digital alternatives and specific situations where checks remain a preferred option. The rise of electronic payment methods, such as debit and credit cards, online banking platforms, and mobile payment applications, has significantly reduced the need for checks in everyday transactions. Digital options offer convenience, speed, and enhanced security features like encryption and multi-factor authentication, making them attractive for routine purchases and bill payments. The manual process of writing, mailing, and processing paper checks is often seen as cumbersome and outdated when compared to instant digital transfers.

Despite the general decline, checks persist for particular types of payments and among certain demographics. Checks are still commonly used for business-to-business (B2B) transactions. Specific scenarios where checks are frequently utilized include rent payments, utility bills, tax obligations, and payments to contractors or individuals who may not have robust digital payment infrastructures. Many people also prefer checks for large personal transactions or charitable donations, valuing the tangible paper trail for record-keeping and tax purposes. Older generations often demonstrate a higher comfort level and preference for using checks, contributing to their continued usage.

Historical Context of Check Usage

Check usage in the United States has undergone a substantial transformation over several decades. Checks were once the dominant method for nearly all financial transactions, reaching their peak in the late 20th century. By 1979, for example, approximately 90% of all payments in the U.S. were made by check, with Americans writing a total of 33 billion checks that year.

The trend of declining check usage began in the late 1990s and has continued steadily. As recently as 2000, checks accounted for six out of ten non-cash payments for purchases, gifts, and bills. This proportion has since dramatically decreased, now representing about one in twenty. The Federal Reserve’s check processing infrastructure also reflects this shift, with the number of processing locations significantly consolidating from 45 in 2003 to just one by 2013. This historical trajectory illustrates a significant move away from paper-based transactions toward electronic alternatives.