'hidden' benefits of cheque (v debit card)

darbooka

We've all gotten accustomed to just handing over plastic at the till, especially the stores who process the transaction quickly and easily. But have you noticed, at national chain stores such as well-known chemists, catalogue stores, consumer electronics group stores (not mentioning names) what happens when you pay by cheque at the till?
The most obvious is probably a slight though polite annoyance of the people in the que behind you, and of the cashier who forgets that the hourly wage is the same even if the work entails slightly extra effort of taking your cheque rather then jsut telling you to type in your pin numbers.
The less obvious ramifications, at least in my experience, are more interesting:
- Actual payment - It can take 8 days, 11 days, even 3 weeks or more than a month (!) for the cheque to actually reach your bank account, compared with as little as 2 days by debit card. It is likely to vary substantially, but in all cases the slower the store is in processing your cheque, the longer the purchase remains basically 'interest free' to you!
- Refund - If anything should be found wrong with the product and you have to bring it back immediately for a refund, the refund should be in cash (as cheque is considered equivalent to cash) and you'll have the funds relatively long before the payment is made; this, compared to the case of a refund on a payment by debit card, where the refund to your card could take 5-10 days and you'll get it after the money was already taken from your account.
- Security - This may be debatable, but regarding identity fraud when you pay by cheque they are supposed to look at your cheque guarantee card for extra verification; and so that should increase difficulty of fraud. Also, cheques don't (yet?:) ) have chip-and-pin so it should arguably be much easier to prove that you didn't sign a cheque than it would be to prove that you didn't use your debit or credit card. Fraudsters don't normally work with cheques due to the difficulties in overcoming security issues.

So with these considerations in mind, the question arises: why even use a debit card instead of a cheque? Have we become so accustomed and socialized to things that benefit mainly the retailer, that we forget to consider what is better for us?

CovMan_2

Probably because the people in the queue behind will sigh.

It is one of those things that if you genuinely have cashflow issues can be useful, but if everyone did it at the supermarket it would take a lot longer for everyone.

So long as you can get a credit card and you can pay it off every month you are far better using a credit card, particularly if you use one that has cashback.

One concern with using cheques is that they are far less trackable actually I don't want to be surprised by something coming out of my bank account weeks later. The best method of money management for most people is to have a credit card that you can check on the internet, that way you get delayed payment, you know what you are spending and you don't annoy the people in the queue behind you.

Despite the risks of the internet you are probably safer having internet banking than getting paper statements through the post.

kaznelson

I use cheques often especially just before pay day!!! This way I can get the goods I need a few days earlier. Its surprising how many cashier dont know what to do with them!!

I dont want a Credit Card as Ive seen too many people get into trouble with them and I dont want to be tempted to spend on it.

I work for a debt collection department and we accept payments by post dated cheques. For people with financial difficulties who cant get credit cards these are an ideal solution to keep us off their back.

darbooka

Good points; however, the comparison was with cheques versus use of debit cards, and not credit cards which are a very different issue including in regard to the purchase protection offered. Debit cards and cheques are both more synonymous with cash purchases, from a commercial perspective.
If you don't have a cash flow problem, then it shouldn't be any problem not knowing exactly when the cheques eventually come through - you can just budget or allocate the relevant amount from the funds in your account as supposedly having been paid, but the advantage is in actuality it's still in your account bolstering your balance and maybe even earning you some interest. For many that may be well worth the extra two minutes or so that it takes to write and process the cheque at the till, compared with the seconds it takes to tap in your PIN numbers.
With that in my, I ask again, given the choice of using a debit card or a cheque, what possible benefit can a debit card possibly offer the consumer other than avoidance of grimaces by anxious que-members waiting behind? So what if it takes slightly longer to hand over payment at the till, when even after doing so the buyer gets to keep control over the dosh for a lot longer than when the electronics are set loose to sieze the funds ASAP once those four PIN numbers are tapped in?
If I can keep the money in my account for another two or three or four weeks at the cost of making you wait in line behind me for another 2 minutes, why wouldn't I do it? And why wouldn't I expect you to do it to me?

Willsnarf1983

one thing

stores are unlikely to give u cash back for a cheque untill it is cleared coz its a blatent way of fraud. i know whe i worked for Blockbusters we never paid csomeone back a cheque in cash unless we knew it had been cleared first


Will

scattycat_3

Each to his/her own. A cc for me.

Back on post
Cashback is easier with plastic, does anybody still do it with a cheque these days? And you still need to present a cheque guarantee card (which usually doubles as a debit card too).

Cannot beat the 56+ days and the security a credit card gives, and even more interest, so really no contest, imho.

daveboy

Whilst I've only ever used cheques at the Post Office to pay for my road tax, it's good to see someone who has my attitude.

If you don't know the people you are holding up - tough.

If someone was to be stupid enough to sigh loudly enough - then I'd make a comment loud enough for a whole load of people nearby to hear.

Your business is your business. I laugh at people who do things such as sigh at a checkout - if they haven't got time to be there, then they simply shouldn't be there!

Str4berr3

I remember when i used to use cheques when i was broke, but before it was payday!
But what is the worth now? When you use a cheque, they swipe your guarantee card to see if they is actually money in there. If not, the guarantee card will decline your transaction. Just like a debit card/Credit card.
Been there, Done it, and will never try again.

chrisxr2

Yes the only reason cheques take longer to go through is beacause of an arcane agreement between banks, theyt can put them through as quick as card payments now, also i for one like my money to go out straight awy as i know exactly where i am with my finances (I live by mini statements so tis miles easier). Also as has already been said, if you need your cheque guarantee card as well then just use the card as it is miles quicker.

MyUserNamesTaken

daveboy wrote:

Whilst I've only ever used cheques at the Post Office to pay for my road tax, it's good to see someone who has my attitude.

If you don't know the people you are holding up - tough.

If someone was to be stupid enough to sigh loudly enough - then I'd make a comment loud enough for a whole load of people nearby to hear.

Your business is your business. I laugh at people who do things such as sigh at a checkout - if they haven't got time to be there, then they simply shouldn't be there!

I paid by debit card for car tax at my local post office the other week!

Fatboy_NSS

The problem though is that cheques are dying. More and more retailers are refusing to accept cheques, and banks are stopping offering standalone cheque guarantee cards. I wouldn't be surprised if banks remove the CGC logo from their debit cards within the next couple years.

Personally I prefer paying for everything on CC. When I get in I then transfer the amount I've spent to my esaver, so that the money is accounted for so I can afford the bill at the end of the month!