Despite the digital revolution, paper checks remain stubbornly popular with many people. Nearly a quarter of all Americans still write at least one check each month, primarily for large sums of money. However, a new survey shows that even inveterate check writers are exploring digital channels.
The study from InvoiceCloud found that people who prefer writing checks also favor using a company’s website or their bank’s website for payments. This suggests a willingness to adopt digital channels not typically associated with this cohort.
Credit cards were also a popular payment method, though not ideal for sizable payments due to the roughly 2.85% fee incurred by the cardholder. This falls in line with separate 2023 research from GOBankingRates, which Sophia Gonzalez, Analyst, Debit Payments for Javelin Strategy & Research covered last year. The study found that 23% of respondents only wrote one check per month, typically for large payments like rent.
As InvoiceCloud noted, many check writers indicated they may be shifting to alternative forms of payments, with interactive voice response (IVR), or automated phone payments being top-of-mind. Indeed, three-quarters of check writers said they would likely use IVR to pay bills if available.
Seeking Security
One reason people feel comfortable with IVR is because it’s private and secure. The primary concern among those hesitant about digital payments is security. With IVR, customers don’t have to provide their credit or bank account numbers live over the phone, reducing the perceived risk of fraud.
Ironically, writing checks is less secure than many think. According to the Federal Reserve Bank of Boston, check fraud was estimated to reach $24 billion in losses in 2023, roughly double what it was five years earlier.
Surprisingly, 71% of check writers have also used a mobile wallet, with PayPal being the most popular option. But this is not a common substitute for large payments like rent. Only 12% of respondents had used a mobile wallet to pay a bill.
