Paying by check may seem outdated in our increasingly digital age, but it remains a secure and reliable payment method that many individuals and businesses still prefer. While younger generations may gravitate towards electronic payment options, older generations often appreciate the familiarity and simplicity of this form of payment. Regardless of your generation, it’s important to understand the fundamentals of check writing and ensure that your checks are accurate and timely to avoid any potential issues. Whether you’re paying rent, utility bills, or making a donation, paying by check is a trusted and time-honored method of payment that continues to serve many individuals and businesses well.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: How Pay-by-Bank Could Shake Up Payments
Preference for Paying by Check, by Generation
- 31% of the Silent Generation prefer to pay by check
- 23% of Baby Boomers prefer to pay by check
- 15% of Gen X’ers prefer to pay by check
- 8% of Millenials prefer to pay by check
As older payment methods recede, pay-by-bank is emerging as a contender at the point of sale. It allows consumers to continue using the funds in their checking accounts, as they do with ACH payments, but adds greater security with real-time authentication and confirmation of payment.
Merchants, too, benefit from the security of pay-by-bank payments, because they don’t have to store sensitive consumer information. For banks, there’s a loss of interchange revenue, but they can rework their strategies to remain the most favored payment method by their customers.