What are the benefits of using checks instead of cash or plastic is a question often asked by many people. Without a person has a financial background they do not typically understand the differences advantages of using different forms of payment. However, these different forms of currency do have major differences when it comes to a person's financial security.
What most people do not understand is that cash is not trackable like checks or credit cards. If they lose it or it gets stolen then it is just lost and will not be replaced because there is no way to prove exactly how much money was lost or stolen or by what it was taken. This is why most criminals prefer cash over other forms of currency.
The next method of using money is to pay for everything with a credit card. When a person uses a credit card to pay for purchases they feel safer than with cash because there is at least some kind of a record of the transaction. However, what most people do not take into account about using credit cards are the fees that go along with it. Paying for items with a credit card often leads to spending more money than a person can really benefit because they do not realize how much they are actually spending and they do not take into account the interest fees that are associated with using a credit card. However, the biggest downside to credit cards is that they tend to get stolen and although they are somewhat trackable, they can still be abused by others who know how to play the system. There are some machines or businesses that accept credit cards which do not require a pin number, signature or ID to prove that they have a right to use the card which makes it very difficult to capture the thief that stop the card. This is why many of these criminals are never done and the money is lost because they have to prove it was a fraudulent person using the card and not the rightful owner of the card. Therefore, credit cards are not a total secure means of using your money either.
A personal check is great for paying bills because it's not obvious as to what it really is when mailed in an envelope and not just anyone can cash it. People tend to keep better records with checks than other forms of payment and they serve as a receipt for proof of payment. The bank keeps a copy in case you lose yours which makes it great for protecting your money. The other advantage is that the law helps protect you from someone stealing a check and fraudulently signing your name to it. Therefore, if you think someone stole a check and fraudulently signed your name to it then you can have the bank check the signatures with an expert to confirm that it is not your signature. Once it is verified that the signature is a fraud the bank will typically return the money to your account and go after the person that committed the fraud in order to prospect them to keep them from being able to do it again to someone else.