Personal Finance Advice

When it comes time to make a purchase, should you write a check or use a debit card? Many people opt for debit cards nowadays, especially since writing a check at a store slows the process down considerably and may result in some sighs and rolling eyes from the people standing in line behind the person writing the check, but the fact is that there are plenty of people who still whip out their checkbooks when making a purchase they don’t have cash for.

There are pros and cons to each option, although once in a while you don’t get the opportunity to write a check because the merchant simply won’t accept one. Of course, there are also still some places that will not accept a debit card for purchases, so sometimes it’s the merchant who dictates the method of payment when cash is not available.

Here are some of the advantages and disadvantages to both options:

Pros for Writing a Check: A check will leave a paper trail for the purchase. Since some financial institutions allow customers direct access to cancelled checks online or through the mail every statement cycle, there is definitive proof of a payment without needing to sift through stacks of receipts to requesting a transaction record from the financial institution. In some instance -although this is becoming less common- a check will not clear for a few days, allowing some people to “float” the checks and make purchases before the money is actually available.

Cons for Writing a Check: Writing a check can be a hassle if there are other people waiting in line behind you and you may have to provide additional identification. Checks must be reordered when depleted, often at a cost to the account holder. If a check gets into the wrong hands, there may not be enough (or any) protection provided by the financial institution. 

Pros for Using a Debit Card: It’s usually a quick transaction. If the debit card features a Visa or MasterCard logo, there is additional fraud protection if someone steals the card number. You may also have buyer’s protection that allows you to dispute the charge if you don’t receive the items or services you ordered. Since the transaction is usually instantaneous, it may be easier to keep track of expenses. Carrying a debit card can also be much more convenient than carrying a checkbook.

Cons for Using a Debit Card: If your debit card gets stolen, charges can occur swiftly. Swiping a debit card does not involve the same reflective actions as writing a check, so some people may not actually realize how much money they are spending. Debit cards may also have fees attached at times, and unlike a floating check may get declined if there are not sufficient funds available.

So which one is better? In most instances, for routine transactions, a debit card is quicker and more convenient. If, on the other hand, you’re paying a collection agency or your rent, a check may provide more substantial proof of payment. Use whichever method you prefer, but realize that not all merchants accept both methods as payment.