3 ms·
If I make an assumption of why using checks is still common in the US, it's for a few reasons stated here. 1. NO FEES. There are no fees associated with checks
by technojunkie 12y ago
If I make an assumption of why using checks is still common in the US, it's for a few reasons stated here.
1. NO FEES. There are no fees associated with checks, unless you post your mail with a stamp. Otherwise, it's the most cost effective way even if it's classical.
2. Credit card transactions means landlord loses ~2.9% on every transaction. This adds up over time and rent prices go up.
3. Auto bill pay means getting someone's bank account number, which requires complete trust. Yes, contracts can be signed and such but so many people do not use contracts if they live with roommates. In California, my experience of signing a legitimate contract just to live with other roommates (usually plural) is basically zero. The ones who require it are large corporations, apartment complex owners who do background checks (again, which I've never had) and stingy landlords.
4. Many owners still use legacy systems which are not automated to keep track of transactions, thus having physical and tangible check or cash makes it easier for them to keep track of this. We don't have common, online repository set up for these small-time complex owners to move to. They're used to the way they do things and won't change.
Overall, it's more cost-effective to collect checks, continue using legacy system and avoid transaction fees by using checks or even cash.
Oh, one other thing, if you have an American bank account and want to send money for free, try Chase QuickPay. You don't even need a Chase bank account to do this!
http://chase.com/quickpay http://chase.com/quickpay