The Death of the Check

Posted by Mike Smith :: September 19, 2007 @ 7:42 am

In today's fast paced world, it seems as though time is about the only thing that moves more quickly than money. One aspect of money does remain slow: the personal check. As technology progresses, the relevance and use of checks are both diminishing quite rapidly.

It used to be that checks were used for nearly all monthly expenses. From bills to groceries, shopping trips to car repairs, the personal check reigned supreme. Increased acceptance of credit cards and technological improvements in the banking sector have certainly changed things in recent years. There hardly seems to be an expense today that requires payment by personal check.

Using check alternatives certainly doesn't mean that you should rely more heavily on your credit card. As you'll often read on the Lending Club blog, credit card debt tends to be a major problem for many consumers today and should be avoided. Credit cards are just one check alternative. The real revolution has been in alternative ways to access one's checking account. ATM machines, debit cards, direct debit, and online bill pay all serve the functions that personal checks once did.

The fact that checks are being used less doesn't mean people should be less vigilant about tracking their finances. In fact, the opposite is true. When all transactions were by check, you could easily track your account balance in the register of your checkbook. Now, with transactions coming in multiple forms (ATM, Direct Debit, Online Bill Pay, and checks) tracking your expenses is a little more complicated. Using personal finance software can really simplify the process.

In time, the personal check may become an antiquated form of money that totally disappears. Before that happens, acclimate yourself to the check alternatives that suit you best. Whether these alternatives are superior is a matter of personal opinion, but their increasing role in the world of money is one that cannot be ignored.