Why Are We Still Using Checks?

There are a lot of ways to pay, from debit or credit cards, to payment apps like PayPal (PYPL) and Zelle, to contactless payment systems like Apple Pay (AAPL), and even buy now, pay later services.

But one old fashioned way is still around too. You may not be able to pay by check when you’re getting your weekly groceries anymore, but when it comes to other parts of life, checks are still an accepted, if not desired, form of payment.

Less Hassle, More Security

Major retailers like Target (TGT), Aldi, Whole Foods (AMZN), Old Navy (GPS), and Lululemon (LULU) no longer accept personal checks as payment. The move isn’t upsetting many consumers. Nearly three-quarters of Americans favor online or mobile payment methods, per a 2024 report from the Atlanta Fed.

Another reason retailers may be phasing out checks is security. Check fraud is a significant issue for businesses, while advances in authentication and data encryption have made digital payment methods more secure.

Death of the Check?

Checks have plummeted in popularity in recent years. Their usage fell 75% over the past two decades, per a CNBC analysis of U.S. Fed data. But the payment form is still popular for large bills and one-off payments, like paying rent, making charitable donations, or buying a car or even home.

Even so, there’s an element of “this is how things have always been done”, especially when it comes to big and significant payments like the down payment for a home. Once the real estate industry turns, it could really spell the death of the check.

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