Do You Still Write Checks | E-Home Advisor June 20, 2015 - Capell Flooring and Interiors

Hi Matt,

 

Back in the old days – which in financial terms is 20-30 years ago :) – pretty much everyone with a bank account wrote checks.  People still do, but the numbers are declining rapidly, since there are so many other options.

 

Three decades ago, most banks still returned the cancelled checks, which served as excellent proofs of payment.  “Cancelled” means your financial institution stamped it on the back with the date they made payment from your account.

 

Then more people began paying with credit cards, debit cards came on the scene, but primarily a new system of fund transfers came into play.

 

You’ve been using this last one for years: it’s called AFT (automated funds transfer) or EFT (electronic funds transfer).  This is how most people pay auto insurance or internet fees or gym memberships.  Once you give the payee your bank encoding info, they take the payment out of your account each month automatically. In fact, most people are paid this way, by direct deposit into their account.

 

There’s another system you can use for paying bills, one you control more directly.  Financial institutions now – even the smallest – have internet banking.  Through a secure connection, you can access their list of payees and set up your bill payments online.  You can pay service providers when you like or on a recurring basis, say $100 on the 15^th of every month.

 

Your financial institution provides a confirmation number – at the time of payment – which you can use as proof.  If a provider ever does dispute payment, the bank will back you up.

 

But if you’re looking for ironclad proof, there’s the good old-fashioned money order.  These may cost a tiny bit more than checks – and a certain number are generally included in account packages – but for security they can’t be beat.

 

• Only the person to whom the money order is payable may cash it.  This is true of checks as well, but checks are easier to forge. 
• The funds are taken out of your account immediately:  the money order is like currency in that way.
• You receive a duplicate on the spot, proof that the funds were transferred from your account to the money order.
• The money order can be traced by the bank if any questions do arise.  They can trace where, when and into whose account the order was deposited.

 

Oh, and about that gym membership, the one you cancelled two years ago but they keep taking the money out of your account?  Your financial institution can help you there too…stop payments work very well, especially if they send it back “refused”.

 

Your flooring consultant,

 

Matt Capell - President of Capell Flooring and Interiors

 

P.S.  Who is the next person you know who needs new flooring right now?  Can I count on you to pass my name along to them?  You’ll be doing them a tremendous favor by referring them to a professional they can trust.  Plus you’ll be rewarded for your referrals, just ask us how with our new Referral Connections program!  Thank you!