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You are probably used to tapping and swiping your debit card as you go through your day, whether to grab a salad for lunch or pay for a new bottle of shampoo. Debit cards are welcome at most of the places where you can use a credit card, and that includes online retailers as well. This can be a welcome payment option when you’re shopping online, as it can help with budgeting (you can only spend what’s in your bank account) and allow you to avoid those credit card interest charges.

However, paying online by debit card isn’t exactly the same as using a credit card, and it’s important to understand the impact, both positive (avoiding a hefty credit card interest rate) and negative (you may not earn rewards nor have robust fraud protection).

Here, you’ll learn how to use your debit card safely and wisely when purchasing online.

Can You Use A Debit Card Online?

Generally, if a website accepts a credit card for online purchases, it also will accept a debit card.

You may not see debit cards listed specifically as a payment option on a merchant’s website. But if the front of your debit card has a credit network logo (such as Visa or Mastercard) and the business accepts credit cards from that network, you should be able to use it.

To use a debit card for an online purchase, you’ll want to click “debit/credit card” (if available) or “credit card” as the payment method and then enter your debit card’s account number, expiration date, and three-digit security code (CCV) to make the purchase.

Unlike debit purchases you make in-person, you generally won’t need to provide your PIN when purchasing something online. The reason is that the transaction will be treated as a “credit” transaction, which means that the transaction is pending (i.e., waiting to be authorized, cleared, and settled).

That said, you won’t be borrowing money to make the purchase. The money will be deducted from your checking account around two to four days later.

Before an online debit transaction clears, you may see a difference between your checking account’s “current” balance, which includes only deposits and deductions that have actually cleared, and your “available” balance, which includes authorized transactions that haven’t yet cleared.

What Are Some Pros to Using a Debit Card Online?

There are a few advantages to using a debit card as opposed to a credit card for online purchases that consumers may want to consider. These include:

Reducing Credit Card Debt

Using a debit card to make online purchases may help reduce credit card use (and debt).

When you shop with a credit card vs. a debit card, you’re borrowing money you’ll have to pay back later. If you don’t pay the debt back within a designated period of time, the lender is going to charge interest. And, if you only pay only the minimum required to carry your balance each month, that debt could grow into a hard-to-get-rid-of burden.

Sign-up bonuses, discounts, unlimited cash-back offers, and travel points can make it tempting to use a credit card for every purchase. But you need to be careful about paying off those purchases on time, or you could end up spending more on interest payments than you receive in rewards.

When you use a debit card, you can’t spend more than you have in your bank account at the moment. And because there’s no debt, there’s no interest to worry about.

Some Debit Cards Come with Rewards

While rewards and perks for spending are mostly associated with credit cards, many debit cards are now offering rewards programs as well, including cash back, points, or miles every time you swipe your card.

Recommended: Different Types of Debit Cards

Lower Fees

Debit cards typically don’t have any associated fees unless you opt into overdraft protection, spend more than you have in your account, and incur an overdraft charge.

By contrast, using a credit card often involves fees. Credit cards may come with an annual fee, over-limit fees (if a purchase pushes their account balance over their credit limit), and late payment fees, in addition to monthly interest on the card’s outstanding balance.

There is also typically no fee for withdrawing cash using your debit card at your bank’s ATM. If you use a credit card to get cash, on the other hand, you may incur a significant cash advance fee. You may also have to pay interest on the advance amount, which often starts accruing the day of the advance, not at the end of the statement period as with regular charges.

Is There a Downside to Using a Debit Card Online?

There are some advantages to using a credit card over a debit card. Here are a couple of things to consider when making the choice to use a debit card online.

Using a Debit Card Online Won’t Build Your Credit History

Have you ever heard someone complain that they couldn’t get a loan or credit card because they’ve never borrowed money? They thought they were being financially responsible, but the bank didn’t want to risk lending money to someone who didn’t have a history of making payments on a loan or line of credit.

That catch-22 extends to purchases made with a debit card. Even though your goal may be to stay fiscally responsible by making only debit (i.e., cash) purchases to avoid debt, you’re not helping your FICO® score, which represents how responsible you are with borrowed money.

And even though you may have marked the “credit” payment option when paying online, the money is still coming directly from your account, so it won’t directly impact your score.

Less Fraud Protection

You may have heard that it isn’t as safe to use a debit card online because federal laws don’t offer the same consumer protections that credit cards get.

It’s true that there is a difference.

Credit card use is covered by the Fair Credit Billing Act which provides a set procedure for settling “billing errors,” including unauthorized charges. If someone uses your stolen credit card account number to make online purchases, you generally aren’t responsible for those charges and can dispute them.

Debit card use is protected by the Electronic Fund Transfer Act, which also gives consumers the right to challenge fraudulent debit card charges. Your liability depends on how quickly you report the problem, though, so you need to act relatively fast to get that federal protection.^[1]

If someone makes unauthorized charges with your debit card number and you didn’t lose your card, you aren’t liable for those transactions as long as you report the charges within 60 days of receiving your statement.

You also could have zero liability if your card was lost or stolen and you report it before any unauthorized charges occur. If you report the lost or stolen card after it’s been used, the amount you owe will be determined by how quickly you report the loss. Within two days, your liability will be no more than $50; within 60 days, no more than $500.

However, if you wait more than 60 calendar days after you receive your statement to make a report, and the thief goes on a shopping spree, you could be liable for all the unauthorized transactions made after the 60-day period.

Some debit card issuers now offer “zero liability” protections that go beyond what federal laws provide. If your debit card is backed by Visa or Mastercard, for example, you may find you have the same protections they offer their credit card users. (You may want to check with your financial institution to verify this coverage.)

Less Purchase Protection

Many credit cards offer purchase or damage protection, which means that if the item you buy is damaged or stolen within a specified period of time, you can get your money refunded. Credit cards may also offer extended warranties on electronic purchases, as well as travel perks, such as rental car insurance.

Debit cards are less likely to offer these perks.

How to Use Your Debit Card Safely Online

To protect your banking information while shopping online with your debit card, you may want to follow these simple precautions.

The Takeaway

Debit cards can be used online for most purchases and can be a great way to manage your spending.

Debit cards generally don’t come with the annual fee and other fees found with some credit cards. Plus, they don’t allow you to rack up debt because you aren’t offered a credit limit that’s higher than your checking account balance.

However, credit cards often come with more perks and purchase protections than debit cards. And, responsible use of a credit card can be a good way to build your credit profile, which can help open up financial opportunities in the future.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Can I purchase online using a debit card?

Yes, you can purchase online using a debit card. Most online retailers accept debit cards for transactions, just like credit cards. You’ll need to enter your debit card number, expiration date, and security code, just like with a credit card. Make sure that your card is activated and linked to a bank account with sufficient funds to complete the transaction.

Why can’t I use my debit card for online purchases?

While debit cards are generally accepted for online purchases, there are a few reasons why your transaction might be declined. These include: insufficient funds (not having enough money in your checking account to cover the cost of the purchase), incorrect information (e.g., a mistake entering your card details), suspicious activity (your bank may flag a transaction that seems unusual), an expired or inactive card, and exceeding your daily purchase limit.

Is it okay to use a debit card online?

Using a debit card online is generally okay, but it comes with some risks. Debit cards are linked directly to your bank account, so unauthorized transactions can quickly deplete your funds. And debit cards generally offer fewer consumer protections compared to credit cards. To use your debit card safely online, ensure the website is secure (look for HTTPS and a padlock icon) and always use a secure, private network.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOBNK-Q225-085

Many people are sidestepping cash lately. According to a March 2024 Forbes Advisor survey, a full 70% of U.S. adults use card payments most often, and only 21% always have some cash on hand.^[1]

But does that mean everyone should forego cash once and for all? Not necessarily. In fact, some financial experts say that a cash-only system may be a wise money move in certain situations.

An exclusively cash lifestyle may help you follow your budget, sidestep overspending, and avoid the high cost of overdraft, interest, and other fees that can be incurred when you pay by check, debit, and/or credit card.

But going all-cash has its downsides, too. It may not be convenient or as secure as other ways of paying.

To figure out what’s right for you, read on.

Pros of Cash-Only Living

Spending money the old-fashioned way — by regularly withdrawing cash from your checking account and keeping it in your wallet — can offer some significant perks. Here are some benefits that come with paying with cash for all your transactions.

Using Cash-Only Can Help You Budget — and Save

When spending is invisible, it can be all too easy for people to forget that real money is actually going out the door — and all too easy to get in over their heads.

Using a cash-only payment system, even if it’s just for a month or two, can be a great way to see exactly how much you’re spending each day and week, and help you learn how to live within your monthly budget. With cash accounting, you only take out the amount you’ve allotted to spend for a certain period of time. When you’re out of bills, you’re done.

And if you use the envelope system (more on that below), you’ll be able to set aside specific amounts for all of your spending categories, such as rent, food, and entertainment. You can then only use the cash you’ve withdrawn for those expenses, which can keep you from spending outside of those pre-set limits.

Cash-Only Living Can Help You Maintain Privacy and Security

Every debit or credit card transaction leaves a digital paper trail, and enables companies to know exactly what you buy, when you buy, and precisely how much you spend.

A more troubling concern can be the potential for data leaks of your personal and credit card information, which can result in identity theft. If someone steals your identity, they could potentially empty your accounts and obtain new credit cards and credit lines in your name.

Using a cash-only payment system reduces the odds of a breach.

Cash-Only Living Can Help You Save on Interest and Fees

Credit cards often come with annual, as well as late payment fees.

And some stores and service providers, especially small and local businesses, may charge an extra fee to take a credit card payment, since they have to pay for the transaction.

In addition, if you don’t pay your credit card balance in full, you’re likely to end up paying exponentially more, thanks to high credit card interest rates. As of May 2025, the average annual percentage rate (APR) for credit cards is 28.63%.

Cons of Using Only Cash

Using cash-only can also come with risks and disadvantages. Here are some of the drawbacks.

Cash Living Can Come With Costs

Some ATMs charge fees for withdrawing cash, which can be troublesome if you find yourself suddenly out of money and need to use an ATM outside of your own bank’s network.

By using credit cards instead of depending on ATMs, you may be able to avoid those costs.

Recommended: How to Avoid ATM Charges

Cash Living Can Have Security Concerns of Its Own

Keeping cash on your person or in your home comes with vulnerability. You could be a victim of theft, you could lose some money, or the cash stashed in your home could be destroyed by a flood or fire. While not highly likely, it can happen.

A lost or stolen credit card, on the other hand, can be reported and you can often successfully dispute any instances of fraudulent charges.

You Fail to Build Up a Credit History

There’s something ironic about the way lenders look at credit history: If you haven’t borrowed much in the past, lenders may be reluctant to lend to you now.

Opening a credit card account is one way you can build up a credit history (other forms of credit, such as student or car loans, count as well).

A strong credit score is based in part on the average age of your accounts (the older the better), as well as a history of paying your bills on time, and how much debt you have in relation to the amount of credit available to you.

Your credit score is an important factor if you’d like to take out a loan in the future, such as an auto loan or home mortgage. If you pay for everything exclusively in cash and never use credit (which is often hard to pull off), you may have trouble showing that you have the credit history to qualify.

Tips for Living a Cash-Only or a Cash-Mostly Life

If you decide to switch to an all, or largely, cash life, here are some strategies to help make the shift as seamless as possible.

Choosing Which Categories to Switch to Cash

Certain payments and bills, such as a mortgage or your student loan, need to be paid digitally or by check.

But you may want to switch groceries, entertainment, clothing, and eating out to cash-only to keep better tabs on the outflow.

Cutting Back on Debit/Credit Card and Check Use

For your cash-only categories, it may be a good idea to stop using your credit card (and even your debit card and checkbook) to pay for anything in those categories. That way, you can really track your cash.

Setting up a System for Tracking Cash Flow

To keep cash for different categories separate, you might consider using the envelope budget method.

With this system, you set a certain amount of cash to spend in each budget category. These pools of money are kept separate in different envelopes. To keep track of the flow, you can put receipts in the same envelopes as you spend.

The goal is to make the cash last all month. Once the envelope is empty, you’ll either be done for the month or will need to take cash out of a different envelope, potentially short-changing another category.

Recommended: 7 Different Budgeting Methods

Establishing a Time to Take Out Cash

Whether it’s a certain day each week or month, you’ll want to make sure that you go to the ATM on a regular basis to get the full amount of cash that you’ll need until the next ATM trip. Ideally, you want to take your cash out of your checking and not your savings account, especially if you’re earning competitive interest in a high-yield savings account.

Planning Shopping Trips in Advance

It’s generally better not to carry a load of cash around, so you may want to know ahead of time what errands you’ll be running, and how much you’ll need for each outing.

As a bonus, this can also curb impulse purchases.

The Takeaway

If you’re looking to fix or improve your everyday spending habits, nothing works quite like a cash-only lifestyle.

By forcing you to stick to pre-set spending limits (and actually see where your money is going), this approach can help you keep your monthly spending within your budget.

While cash-only living can take away from efforts to build credit and can have some security issues, this method of spending can also help you save on credit card fees and interest.

Whether you opt for an all-cash or partly-cash lifestyle, you’ll want to choose a bank that provides easy access to your funds, while also paying a competitive return on your balance.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Is using cash-only a good idea?

Using cash-only can be beneficial for budgeting and avoiding debt, as it provides a tangible sense of spending. However, it can be impractical, especially for large purchases or online transactions. Cash also doesn’t offer the same level of security as cards, since you generally can’t get cash back if it’s lost or stolen. Additionally, paying cash-only limits your ability to build a credit history, which is important for major financial activities like renting an apartment or getting a loan.

Is it illegal to have over $10,000 in cash?

It is not illegal to have over $10,000 in cash. However, if you deposit or make a payment of more than $10,000 in cash, financial institutions and businesses are required to report it to the government. And if you are traveling with an excess of $10,000, you must report it to a Customs and Border Protection officer when you enter or exit the U.S.
As long as the cash is legally obtained and reported when necessary, there are no legal issues with possessing it.

Can you live off only cash?

Living off only cash is possible but challenging. It can work for everyday expenses like groceries and dining out, but it’s impractical for larger transactions, such as rent, utilities, and online purchases. Cash also doesn’t build a credit history, which can affect your ability to secure loans or rent an apartment. Additionally, carrying large amounts of cash can be unsafe and inconvenient, especially for travel or emergencies.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOBNK-Q225-075

Verifying a check can help you avoid the frustration and fees that can be involved when you deposit a fake check or one that bounces.

Perhaps you have received a check from someone you don’t know well, or the check appears odd, or you are simply aware of the fake check scams out there and prefer to be cautious with your bank deposits.

To help you avoid counterfeit checks, learn how to verify a check here. This can help cut down on the likelihood that you will be involved with fraudulent activity or simply a check that bounces.

What Is Check Verification?

Check verification is a process in which the payee, or recipient of a check, confirms that the check is valid and good. In other words, you are making sure that the check can be cashed, that it is not fraudulent, and that it will not bounce and trigger fees.

At a time when there’s a significant amount of fraudulent activity and fees, this can be a valuable process, saving you time, energy, and cash.

Verifying a Check

If you’re curious about how to validate a check, know this: Banks must process check funds quickly, sometimes as fast as two days by law. The bank may say that a check has cleared and the funds are available for use, but this doesn’t necessarily mean that the check is valid.

It can take a few weeks to identify a fake check in some cases, and by that time it might be too late. You, the recipient, may have thought the funds were available and tried to use them.

To determine if a bank check or cashier’s check (vs. an electronic or e-check) is valid, consumers may have to do more than just a physical inspection of the check.

Here are a few ways to identify if a check is fake or valid.

•   Ensure a legitimate bank issues the check. Although a valid bank might issue some fake checks, a sure giveaway of a fake check is that a fake bank name is on it. To locate an FDIC insured bank in the US, consumers can use the FDIC BankFind Suite.

•   Call the bank the check is from. Look up the bank’s phone number on its website instead of using the phone number listed on the check. The number on the check might be a part of the scam, so it’s essential to call the official direct line to confirm the check’s validity. The bank might need the check number, issuance date, and amount to confirm if the check is real.

•   Complete an ABA routing number lookup. Developed by the American Bankers Association in 1910, the ABA routing number identifies the financial institution responsible for the payment. To make sure a check is valid, use a routing number lookup system for verification.

•   Take into consideration the origin of the check. If the check came from an unknown source, it’s wise to be skeptical of the payment. Scammers usually communicate via email or text message, which may contain grammatical errors.

•   Confirm the address the check was mailed from. If a check has a postmarked address that doesn’t match the issuing bank, it may denote a fake check. Be extra wary of any check that is sent from overseas.

•   Look for watermarks, security threads, or other security features printed on the check. If a scammer copies any of these features, the quality is often questionable.

•   Compare the check amount to the request. If the check amount is greater than the expected amount, this is a sign of a hoax the scammer may use to get the check receiver to wire funds back to them when the check is deposited.

Check Verification Services

If you receive a considerable number of checks on a regular basis (say, you run your own business), you might want to look into check verification services that help with this process.

If you hire one of these services, they can help you figure out if the check is likely to be good. They can reveal if the check comes from someone with a record of trying to pass off bad checks. They cannot confirm that a check is written against an account with sufficient funds, but they can help you avoid depositing a check from someone with a suspicious history.

4 Ways to Tell if a Check Is Fake

Wondering how to know if a check is fake? There may be some telltale signs that a check is bogus. Learn what to look for.

Feel the Check’s Edges

Legitimate checks will have one or more edges that are rough or perforated. If a check feels smooth all the way around, it could be fake.

Inspect the Paper

An authentic check is printed on thick, matte paper, not flimsy stock. Thin paper can indicate a fake check.

Double-check the Check Number

Check numbers appear in two places on legit checks: both the upper right-hand corner and on what’s known as the MICR, or the magnetic ink character recognition line at the bottom.

If the numbers don’t appear in both places and match, you could be holding a bogus check.

Zero in on the MICR Line

As mentioned above, the MICR line contains important information. If the printing there looks raised or shiny, the check could be fake. You could also run a damp finger over the printing. If it smears, sorry: The check is likely fake.

Verify the Bank Address

Checks should have the bank address printed right on it. You can compare this to the official bank address and make sure they match up. Also, a PO box as the bank address can be a red flag that the check is not authentic.

Verifying Funds on a Check

As you work to verify a check, it’s important to remember one thing: When you verify funds, that is not a guarantee that the money will be available when you go to cash the check. The funds may be available at that moment, but you cannot put a hold on the cash nor reserve it. When you actually deposit the check, it could bounce.

Unless the check is an authentic certified check or cashier’s check, there is still the possibility that it might not clear.

Recommended: How to Write a Check to Yourself

4 Check Scams to Look Out For

Although criminals are coming up with new bank fraud ploys all the time, there are a few current common scams to be aware of.

1. Get Rich Quick Scams

In this scam, the scammer contacts a check recipient and says that they won the lottery or are entitled to an inheritance, usually from another country. The scammer says they will send a cashier’s check with the proceeds, but the recipient must pay the fees and taxes. So, they are instructed to deposit the funds and wire money to the scammer for taxes and fees.

2. Online Auction and Overpayment Scams

Some scammers may visit an online auction site or classified listing site and bid on an item, pay in advance for a service, or rent an apartment. The scammer will then send a cashier’s check, usually for more than the price agreed upon. Once you bring this to their attention, they will request the recipient to deposit the check and then send the extra funds back to them before you find out the check was fake.

Or the scammer might overpay a person for an item being sold on Facebook Marketplace or Craigslist and ask for the overpayment back as cash. The payee only finds out too late that the check bounces.

3. Secret Shopper Scams

With secret shopper scams, scammers pretend to have a job opportunity that allows employees to work from home. The scammer may send a check as a starting bonus and request the employee pay the activation fee. The hope is that the scammer receives the funds from the activation fee before the fake check bounces.

Another way secret shopper scammers take advantage of people is by hiring someone and stating their first assignment is to review retailers that sell gift cards. In this case, the shopper may get a check with instructions to deposit it into their account and then wire the funds to a third party. Unfortunately, once the funds are wired to someone else, the third party vanishes.

4. Personal Assistant Scams

Scammers sometimes try to hire personal assistants online. Once the scammer hires someone, the scammer may send a check and tell the new employer to use the money to purchase gift cards, supplies, or equipment for the client. After the scammer receives the gift card PIN, they can use the funds right away. This will leave the personal assistant without the money when the bank determines the check is counterfeit.

Taking Action If You’re Scammed

If you have wired funds to a scammer, reach out to the company transferring the money as soon as possible, reporting the fraud, and filing a complaint.

Two commonly used money transfer companies are Western Union™ and MoneyGram®, and both have departments dedicated to fraud awareness. If you think you may have been scammed, you can report suspected fraud to the money issuer by phone.

• Western Union Fraud Hotline at 1-800-448-1492.

• MoneyGram Customer Care Center at 1-800-933-3278.

Both companies also have online forms that can be used to report suspected fraud. You can request a transfer reversal and, while it’s unlikely they will do this, it’s essential to ask at least.

If you used a money order to pay the scammer, reach out to the money order issuing company. Ask if you can request a stop payment or if they can track the money order and stop the delivery of the money.

If you sent the money order by US mail, try reaching out to the U.S. Postal Inspection Service® or another service carrier you used.

In the event that the scammer requested gift cards, contact the gift card issuing company immediately and explain that the company’s gift cards were used in a scam. If you contact them quickly, they might be able to refund the money. Remember, gift cards are not a form of payment, they are a gift. It’s a red flag if someone is trying to pay you using gift cards.

Recommended: Passive Income Ideas

The Takeaway

Verifying a check can help you avoid have a check bounce, with all the frustration and fees that can involve. Inspecting the check visually and checking details about the bank that issued it are a couple of the ways that you can verify a check. Also, while you can’t prevent fraudsters from attempting to steal your money, you can take steps to keep your money safe by using a secure bank account.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How can you verify if a check is valid?

There are several ways to verify if a check is valid, including confirming the bank information, checking the routing number, and inspecting the paper and ink.

Can you verify a check online?

There are ways to validate a check online in certain situations. For businesses that receive a significant number of electronic checks, or e-checks, online verification can be a tool that helps reduce the risk of depositing checks that will bounce.

What is a check verification system?

A check verification system is typically a business that verifies a bank account status in real time to determine if a check is drawn on a valid account. There are also systems consumers can use to verify a check, such as confirming the ABA number and inspecting the ink and the paper.

Photo credit: iStock/andresr

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

SOBNK-Q325-049

Losing track of money might seem hard to imagine, but it’s actually not uncommon to forget about an old bank account or other source of money that is rightfully yours.

It could be an account you opened a long time ago that, after one or two moves, became both out of sight and out of mind. Or it might be lost paycheck, an old 401(k), or an unclaimed pension.

In fact, roughly one in seven people have unclaimed assets waiting for them, according to the National Association of Unclaimed Property Administrators (NAUPA).^[1] They report that billions of dollars in unclaimed property are currently being held by state governments and treasuries within the U.S.

If you’ve lost track of money that belongs to you, however, there’s no reason to panic, or consider the money gone for good. There are a number of ways to locate lost assets from a bank or other type of financial account, and most of them are completely free. It might take a bit of (virtual) leg work, but finding the unclaimed money due to you can be worth the effort.

How to Find an Old Bank Account

If you’ve accessed the bank account within the past year, you might be able to recover the account directly from the bank. Exactly how to recover a lost bank account will vary based on the financial institution. Your account information can be found on checks and often on old account statements.

If it’s been longer than a year, you might have to dig a little deeper to find and recover a lost bank account. To search for an old account in your name, you might start by combing through old financial records (paper and digital), including bank statements, correspondence/emails, and tax returns. You can also get information about closed bank accounts in your name through ChexSystems, a reporting agency that tracks consumer banking history.^[2] You can request a free copy of your ChexSystems report at ChexSystems.com.

How to Find Unclaimed Money

When a bank or other business loses contact with an account holder, they are legally required to turn any assets over to the state, typically after three to five years (it varies by state) of inactivity or returned mail.^[3]

That’s why a good place to start a quest for older unclaimed property is often through your state’s unclaimed property office. The unclaimed funds held by the state are typically from bank accounts, insurance policies, or your state government.

The NAUPA offers an interactive map, where you can click on your state and be directed to its unclaimed property office. To search for your unclaimed money, you may want to use both your current and maiden name (if you legally changed your last name).

Another good resource for tracking down unclaimed money is MissingMoney.com. This is a multi-state directory operated by the NAUPA that allows you to search by name for missing or unclaimed money.

If you belonged to a credit union in the past, it may be worth checking the unclaimed deposits listing run by the National Credit Union Administration.

Other Sources of Unclaimed Money

Unclaimed money isn’t limited to forgotten checking accounts and savings accounts from childhood.

There are a variety of reasons you could be missing money due to you — perhaps you switched jobs and lost track of a 401(k) or pension plan. Or maybe you forgot to update your address and missed a payment or tax refund.

If you previously worked for a company that offered a pension plan, you can search the Pension Benefit Guarantee Corporation’s (PBGC’s) database. PBGC is a federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) to protect pension benefits in the private sector.^[4]

For lost or missing retirement plan funds, you could check the National Registry of Unclaimed Retirement Benefits, which is a secure database of retirement plan account balances that have been left unclaimed by former participants of retirement plans.

USA.gov helps you search for assets due from employers, insurance companies, and the government (including tax refunds).

How to Claim Lost Money

If you find unclaimed assets in your name, the next step is typically to fill out a form or make an online request to make your claim.

Each state generally has its own rules and regulations for how individuals should go about proving ownership of the unclaimed money now being held by the government. Generally, states will require substantial evidence that the money rightfully belongs to you.

Claims usually require showing proof of identity (such as information from a driver’s license or passport), any former residential addresses, and documentation showing your right to ownership of the assets.

If the owner is deceased and you inherited the assets, additional documents are typically required. This may include a death certificate, as well as a probate court order.

Recommended: Can You Reopen a Closed Bank Account?

Are Companies That Help You Reclaim Assets Legit?

As you’re searching for lost bank accounts, you may find businesses that offer to find unclaimed money, generally for a fee. Sometimes known as “finders,” these are companies that are looking to earn money by reuniting people with their lost assets.

While it’s fine to pay someone to help you get lost money returned to you, you may want to keep in mind that you can complete a search and submit a claim for free by yourself.

It’s also a good idea to keep your eyes open to potential fraud. Unsolicited emails or letters offering to return unclaimed property to you for a fee, for example, are often scams.

You’ll want to be especially wary of an organization or individual who claims to be a part of the government and offers to send you unclaimed money for a fee. Government agencies will not contact individuals about unclaimed money, nor will they charge a fee.

If somebody contacts you regarding missing money, it’s a smart idea to do some research on the business before handing over any personal information, and also to avoid paying any money up front.

Recommended: Avoiding Mobile Deposit Scams

The Takeaway

Many people have unclaimed money floating around somewhere. Often this money comes from funds found in banks, financial institutions, or companies that haven’t been in contact with the owner for several years and, as a result, the funds have been turned over to the state.

A good place to start looking for unclaimed assets is NAUPA’s database of records from all 50 states. From there, you can find links to each state’s official unclaimed property program.

What to do if you come into some unexpected money? Whether your windfall is large or small, consider putting it in a checking or savings account that pays a competitive interest rate and charges no (or low) fees.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Is there a way to find all bank accounts in my name?

To find lost bank accounts, start by looking through your old and current financial documents (both paper and digital), including past bank statements, emails, and tax records. You can also get information about closed bank accounts in your name through ChexSystems, which is a national reporting agency that tracks consumer banking history. While your credit reports won’t include bank account information, they will list current and closed credit accounts.

If needed, you might contact individual banks directly to inquire about any accounts in your name, although they typically require proof of identity.

Is there a way to find lost bank accounts?

While there isn’t a central directory listing all bank accounts in your name, you can order a free copy of your ChexSystems report (at ChexSystems.com), which focuses on bank account history. You can also locate lost or forgotten bank accounts through your state’s unclaimed property office. Many states offer online databases where you can search by name to see if old accounts have been turned over. MissingMoney.com can be a good place to start.

You can also contact previous banks directly or check old records (like tax returns and bank statements) to find information about old bank accounts.

How to find bank accounts with a Social Security number?

There is no central public database you can use to search for bank accounts with a Social Security number. However, some banks may be willing to do a search for accounts using your Social Security number for you, especially if you think there may be accounts in your name you don’t know about. To access this service, you may need to submit a formal request and offer proof of identity.

Otherwise you can find old accounts by combing through old records (like tax returns, correspondence, and bank statements) and contacting previous banks directly. You can also do a search for unclaimed funds from old bank accounts at MissingMoney.com.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.

SOBNK-Q225-050

Having a baby can fill your house with love. It also can take a toll on your finances.

And you can expect the costs to keep growing right along with your baby. In fact, according to a 2025 estimate, it can cost almost $30,000 a year to raise a child.^[1]

That means you’ll likely have to reconfigure your household budget through the years (and then contemplate higher education expenses). If you break down the process and do a little at a time, it can make the task less daunting.

Read on for tips on getting started with the budgeting-for-baby process.

Assessing Your Income

As you create your budget, begin by looking at your household income after taxes and other deductions come out of your paycheck each month. That’s the money you have to work with, not the gross amount.

Also, if one parent plans to stay home with the baby full- or part-time, plan your budgeting accordingly. Be sure to consider the loss of any non-cash forms of employee compensation, such as insurance and retirement contributions. If those go away, the amount of money in your bank accounts will likely drop, which is something to plan for.

Looking at Your Current Expenses

Some things won’t change at all, but there may be costs that will go down or go away after you have the baby. For example, the amount you spend on date nights, dinners out, and travel might be reduced for a while.

If one parent decides to stop working, their wardrobe budget might drop. But you’ll also be adding plenty of expenses. And then there are some forgotten expenses, like maintenance for your home, yard and car, you’ll need to factor in.

This is a good time to identify your priorities and be prepared to make some trade-offs to curb spending. For instance, can you live without some of those streaming subscription services? Can you make coffee at home instead of going out?

Planning Ahead For Recurring New Expenses

Here are some of the expenses that will often turn up once you become a parent.

Child Care

Typically, child care is the biggest ongoing expense for a family with a new baby. The cost will vary depending on where you live, the type of care you choose, and whether you need part-time or full-time care, but according to the Care.com 2025 Cost of Care Survey, national averages ranged from $343 per week for a child-care center to $827 for a full-time nanny.^[2]

Feeding

Even if you plan to nurse the baby, you’ll need to prepare for the possibility that breastfeeding might not work out and formula could become a regular expense. A BabyCenter study in 2025 found that formula can cost $222 or more a month.^[3]

When your baby starts on solid foods, typically at about 4 to 6 months old, you’ll add to that expense.

Diapers

The average baby uses 2,500 to 3,000 diapers in the first year. That could add up to about $839 to $1,000 a year in disposable diapers.

House and Car

Maybe you’re lucky enough to have an extra room in your home that’s ready to be transformed into a nursery. And maybe a baby car seat will fit into your current ride without a struggle.

But if that’s not the case, and you have to make some adjustments for your growing family, you may have to add more expensive house or car payments to your get-ready-for-baby budget.

Recommended: How to Manage Your Money Better

Miscellaneous Expenses

You’ll need to furnish a nursery for your baby, which can range from several hundred to several thousands of dollars. You’ll also need a car seat; stroller; high chair; toys and books; pacifiers, tiny outfits and socks; lotions, shampoos, and creams — the list goes on and on. This is where you can prioritize.

You may get some of these items at your baby shower, and friends and family might supply you with some hand-me-downs, which will help save money on clothes and cut costs. But there will still be plenty of items you’ll need to buy.

Preparing for Some Upfront Costs

Depending on your insurance coverage, you could be going home from the hospital with a bundle of joy and a bundle of bills. Check your health insurance plan to gauge what your costs could be. To give you a sense, many new parents end up paying about $3,000 in out -of-pocket costs for pregnancy and delivery.^[4]

The amount of your hospital bill will depend on a lot of factors, including the part of the country in which you live, the size and location of the hospital, the length of your stay, and how much extra care you or your baby might require.

You’ll also need some starter equipment — a crib, changing table, dresser, and a baby monitor, for instance.

Smaller ticket items include a diaper bag and pail, a baby bathtub, bedding, and towels. Here’s another place where hand-me-downs and resale shops can help you save.

Recommended: Savings Calculator

Ready, Set, Transition

Remember those current expenses you thought about letting go of, like fancy coffees and some streaming services? You don’t have to wait until the baby arrives to make changes. You might want to practice by giving your new budget a test run before your delivery date.

To take it a step further, if one parent plans to quit working, even for a short while, you could start living on just one salary a few months early and put the extra income into an emergency fund. That money could come in handy later when unexpected expenses crop up.

Recommended: 5 Ways to Achieve Financial Security

Overwhelmed? Take Baby Steps

Preparing for a new baby, especially your first, can be exciting. It also can be a little overwhelming.

Doing a few breathing exercises may help reduce any financial stress you’re feeling as you’re working on your budget. Starting now with baby steps could help get you on track well before your little one arrives.

The Takeaway

The cost of raising a child can be as much as $30,000 a year (or even higher). As you plan for parenthood, it’s wise to develop a budget and see where you can economize. Hand-me-downs can help you save on purchases, and building an emergency fund can help you if an unexpected expense crops up. Having the right banking partner can also help you manage your money well as your family grows.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How to budget when you have a baby?

One good system for assessing your new spending style once you have a baby is to use the 50/30/20 budget rule. That means 50% of your take-home pay goes to needs, 30% to wants, and 20% to savings or additional debt payments. As you see how much your baby-related expenses are, you can update your budget, trim spending as needed, and find a balance.

What is the biggest expense for having a baby?

Often, the biggest expense for having a baby is child care. The exact amount will depend on where you live and what kind of care you opt for, but costs currently can range from, on average, $343 to more than $800 a month.

How much are diapers a month?

Typically, diapers can cost $70 to $80 a month, though figures can vary depending on the type your choose and where you live.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBNK-Q225-018