Check book usage

[bjl584]

I write an average of 2 per month, occasionally 3.
So maybe 30 a year

[kork13]

It's funny how 20/year seems to be a recurring answer, and for the same general things - mostly government agencies.

Maybe I'm wrong but isn't it cheaper and less labor intensive for places to accept electronic payments rather than having to process physical checks? If so, why the big "convenience" fees for e-pay? Or am I wrong about that? What does it actually cost the business to accept an electronic transfer?

Access to the ACH does come with costs, albeit very small. However, most states have laws barring government agencies from bearing any transaction costs. Banks charge the various fees to businesses & government agencies. Thus, they have to pass them on to customers.

[disneysteve]

Access to the ACH does come with costs, albeit very small. However, most states have laws barring government agencies from bearing any transaction costs. Banks charge the various fees to businesses & government agencies. Thus, they have to pass them on to customers.

So the government agencies aren't allowed to "eat the cost" of the fees. That makes sense. But how much does it actually cost them vs. what they charge? Our township charges $0.99 to pay our taxes which is very reasonable, but some places charge a lot more than that. It just seems like they're making a profit on the e-payments rather than offering it as a service that is more convenient to both the customer and to them. I would happily pay everything online if the fees were acceptable. I don't want to be writing and mailing checks if I don't have to.

[Joan.of.the.Arch]

It's been awhile since I paid attention to what my city asks in fees for paying electronically, but several years ago it was 3% of the payment due.

We normally walk our payment check in to a nearby bank branch where the city sets up a temporary satellite office -- feel more assured than by mail and can just make it part of a daily walk. We pay yearly in December. 2020's payment got mailed in.

We hardly use checks at all. I'd have to ask my spouse where the check book is.

[disneysteve]

It's been awhile since I paid attention to what my city asks in fees for paying electronically, but several years ago it was 3% of the payment due.

That's what our synagogue charges for credit card payments, but e-checks are free. I understand it with CC since they need to cover the processing fee. I don't know what it costs them to process an e-check but it's apparently low enough that they don't feel the need to pass that cost on to the members.

[kork13]

So the government agencies aren't allowed to "eat the cost" of the fees. That makes sense. But how much does it actually cost them vs. what they charge? Our township charges $0.99 to pay our taxes which is very reasonable, but some places charge a lot more than that. It just seems like they're making a profit on the e-payments rather than offering it as a service that is more convenient to both the customer and to them. I would happily pay everything online if the fees were acceptable. I don't want to be writing and mailing checks if I don't have to.

No idea what it actually costs... I do agree that they may goose it for an extra minor profit, but it does also depend on the bank that the agency uses. BOA charges $X, Citi charges $Y, etc. Another factor could be that "small businesses" (such as your synagogue) get a different fee schedule than government agencies receive (knowing the efficiency failures in govt contracting, govt probably gets charged more).

[disneysteve]

No idea what it actually costs... I do agree that they may goose it for an extra minor profit, but it does also depend on the bank that the agency uses. BOA charges $X, Citi charges $Y, etc. Another factor could be that "small businesses" (such as your synagogue) get a different fee schedule than government agencies receive (knowing the efficiency failures in govt contracting, govt probably gets charged more).

I also wonder if there isn't an ulterior motive. Discourage people from paying online which is instant and efficient. Make more people pay by mail which increases late payments and the fees that go along with them.

[kork13]

I also wonder if there isn't an ulterior motive. Discourage people from paying online which is instant and efficient. Make more people pay by mail which increases late payments and the fees that go along with them.

Honestly, I doubt that's the case. They often have a hard enough time collecting payments on time, let alone discouraging it by overcharging for electronic payments. If there's any "ulterior motive," it's probably what we've already mentioned -- the short-sighted attempt to curry an extra bit of income. There could also be some added personnel cost to electronic payments, assuming (likely accurately) that the payment receiving systems is not integrated into their payment recording systems.

[LivingAlmostLarge]

2x/month housekeeper, kids activities at least 2 a month when we were doing stuff.

[Like2Plan]

I write about 3 a month. They are usually gifts.

[myrdale]

Once a month the following checks go out:

Power
Water
Cable
Phone
Gas (Dec to March)

Also once / twice a year:
Truck Insurance
House Insurance
Life Insurance
Property Tax
Car Tags

[terri77]

I say I write about 5 a month & even those I could do with online payments. I haven’t bought checks in years.

[disneysteve]

Once a month the following checks go out:

Power
Water
Cable
Phone
Gas (Dec to March)

Also once / twice a year:
Truck Insurance
House Insurance
Life Insurance
Property Tax
Car Tags

Is there a reason why you choose to pay all of those by check? The only one of the things you listed that I pay by check is the car tags. Everything else is paid electronically one way or another.

[myrdale]

Is there a reason why you choose to pay all of those by check? The only one of the things you listed that I pay by check is the car tags. Everything else is paid electronically one way or another.

It works. It works well.

[btctony]

At this point, I don't think I have written a physical check in about 4 years. Prior to that, I was only writing one or two per year for several years. I can't remember exactly what the reason was, but there was some reason that I couldn't pay my HOA fees with online banking at that time.

I prefer using online banking and having the bank print and mail the check, since I don't pay anything additional for that service.