1 of 1

No

Write now Article Tools

Electronic money transfers have definite uses. The IRS uses them to debit taxes out of business's accounts, and kidnappers love having ransom money wired to untraceable accounts in the Caymans. But at the same time, electronic money transfers simply cannot beat the benefits of paper checks.

You need to pay your cable bill. Sure, some companies will direct debit your account, but what if you're not set up for that yet? You have to write a paper check. Or perhaps you need to pay your child's piano teacher. Are you going to have your piano teacher debit your bank account as well?

Electronic money transfers are definitely useful for many purposes and they are unarguably increasing in popularity, but there is no technology currently available that will ever completely eliminate paper checks. Paper checks can be written by anyone, to anyone for free (at almost all banks). While paper checks are not as secure as electronic fund transfers, the security comes with a long wait - electronic transfers take just as long to clear as checks do. Also, there are currently emerging technologies for businesses to clear checks at the point of sale, meaning that personal checks have an all-new level of security.

Since paper checks in their current form have been around for many decades, the security features on them have evolved to a level in which check fraud is nearly impossible. While it is possible to fake them (it's possible to counterfeit cash, as well, even though it is supposed to be the most secure form of money transfer), creating a fraudulent check and having it clear without any questions asked from the owner of the bank account is exceedingly uncommon.

In some ways, paper checks are more secure than widespread electronic fund transfers. Since there is a paper record of the transaction signed by both parties, it is indisputable after the transaction has taken place. Electronic money transfers work well for the government and big businesses that collect large sums of money, but for small transfers from household to household, they would not be practical. If lots of electronic money transfers became common, there would be tons of disputes, not to mention errors in billing due to wrong account numbers. Using a check, the account number at the bottom is printed in ink on each check (neither party has to write or type it). For an electronic transfer, the recipient must provide an account number as well as a bank code; these codes are often inaccessible and are easy to confuse or mistake.

Electronic money transfers have their place and will continue to gain in popularity, but for regular, day-to-day transactions between private parties, paper checks will forever reign.

Learn more about this author, Sanjit Datta.
Click here to send author comments or questions.

Add your voice

Know something about Are electronic money transfers better than paper checks??
We want to hear your view. Write now!