What are the benefits of using checks instead of cash or plastic is a question that many people often ask. Unless a person has a financial background, they generally do not understand the advantages of the differences of using different forms of payment. However, these different forms of currency have vast differences when it comes to a person’s financial security.
What most people don’t understand is that cash like checks or credit cards cannot be traced. If it is lost or stolen, it is simply lost and will not be replaced because there is no way to prove exactly how much money was lost or stolen or who took it. This is the reason why most criminals prefer cash to other forms of currency.
The next method of using money is to pay for everything with a credit card. When a person uses a credit card to pay for their purchases, they feel more secure than with cash because there is at least some kind of record of the transaction. However, what most people don’t take into account about using credit cards are the accompanying fees. Paying for items with a credit card often leads to spending more money than a person can actually pay because they do not realize how much they are actually spending and do not factor in the interest rates associated with using a credit card. However, the biggest disadvantage of credit cards is that they tend to be stolen and, although they are somewhat traceable, they can be abused by other people who know how to use the system. There are some machines or businesses that accept credit cards that do not require a PIN, signature, or identification to prove they have the right to use the card, making it difficult to catch the thief who stole the card. That is why many of these criminals are never caught and money is lost because they have to prove that it was a fraudulent person who used the card and not the rightful owner of the card. Therefore, credit cards are not a totally safe way to use your money either.
A personal check is great for paying bills because it’s not obvious what it really is when it’s mailed in an envelope and not just anyone can cash it. People tend to keep better records with checks than with other forms of payment, and they serve as a receipt as proof of payment. The bank keeps a copy in case you lose yours, making it ideal for protecting your money. The other advantage is that the law protects you from someone stealing a check and signing it fraudulently. So, if you believe someone stole a check and fraudulently signed your name, then you can have the bank verify the signatures with an expert to confirm that it is not your signature. Once the signature is verified to be a fraud, the bank will normally return the money to your account and go after the person who committed the fraud to prosecute them and prevent them from doing it again with someone else.
