It’s 2018, So Why Are You Still Using Cheques?
It’s 2018, and technology has enhanced every aspect of our lives, from communication and transportation to entertainment and shopping. Isn’t it time your finances joined the modern age? Specifically, isn’t it time you moved away from cheques and started using electronic payments?
Cheques are expensive, inflexible, susceptible to financial fraud/loss, waste time, and offer none of the advantages of modern payments.
The trend is clear: cheques are on their way out. It’s time to move your finances into the future.
Cheque Usage is WAY Down
From 2000 to 2012, the number of cheques paid declined by more than 50 percent, as payments through cards, direct deposit, and other services more than tripled. In 1990, 2.3 billion cheques were processed. By 2014, the number was less than one billion. In 2004, 81 percent of businesses used cheques for payments. In 2016 this number was barely 50 percent.
Cheques Rank Dead Last Among All Forms of Payments For Satisfaction
The PYMNTS Disbursement Satisfaction Index measures consumer satisfaction across payment methods. The report surveyed over 2,500 consumers in 2017 and examined forms of payment such as cash, cheques, direct deposit, instant credit pushed to a card, and non-instant credit pushed to a card. Finishing dead last in the report was payment via cheque, which ranked only 4.4 out of 100. The average Disbursement Index Score across all use cases and payment methods was 52.8, 12x higher than cheques!
Cheque Fraud Is A Big Problem
If a cheque is stolen or lost, it can’t be easily replaced because it lacks the security features common on credit, debit and prepaid cards. Cheques are highly susceptible to fraud and theft and cheque fraud is one of the most common forms of financial crime.
Prepaid cards greatly reduce the security risks related to cash and cheque fraud. If your card is stolen you do not run the risk of losing everything in your bank account or damaging your credit. All data is encrypted and totally confidential.
Cheques Waste Time
We live in 2018–the time for writing, mailing, receiving, and depositing a cheque should be a thing of the past. Time is money, and you don’t have time–or money–to waste. People want their money, and they want it fast. 75 percent of respondents earning less than $60k are satisfied with receiving disbursements via instant payment pushed to a card. That number covers over half of all families in the U.S., and makes up 80 percent of all working individuals.
Having a bank place a hold on your cheque and only giving you a portion of the funds is infuriating, and it isn’t necessary, at least not anymore. With electronic payments, funds can be sent out and made available in minutes, and payments can be made as often as needed.
Cheque Cashing Is Expensive
While the majority of people have banks, there are still many people who use expensive alternative financial services providers to cash cheques such as payday lenders. Electronic payments can solve this payment issue less expensively and more securely. Prepaid cards provide consumers, businesses and governments with the efficiency, security and flexibility of electronic payments by leveraging a payment tool that is nearly universally understood and accepted. Open-loop products can be used anywhere the card network (i.e. Mastercard or Visa) is accepted, including online.