Target has announced that it will stop accepting personal checks at its stores starting July 15. The decision comes as the retailer observes a significant decline in the use of checks among its customers, opting instead for more modern payment methods.
Key Takeaways
- Target will no longer accept personal checks after July 15.
- The decision is due to the extremely low volume of customers using checks.
- Other payment methods like credit and debit cards, "buy now, pay later" services, and the Target Circle membership program are being emphasized.
The Decline of Personal Checks
Target’s decision to stop accepting personal checks is part of a broader trend among retailers. Aldi and Whole Foods Market have already discontinued the acceptance of checks, and while some retailers like Walmart, Macy’s, and Kohl’s still accept them, it’s becoming increasingly rare to see someone pull out a checkbook in-store.
According to data from YouGov Profiles, only 9% of Americans still use checks for in-store purchases. Cash remains the most commonly used form of payment, with 67% of those surveyed preferring it. Debit and credit cards follow closely, while contactless payments are also gaining traction.
Who Still Uses Checks?
A February 2024 survey from GOBankingRates found that while writing checks is less popular than it used to be, 54% of Americans still wrote a check in the past year. The survey highlighted a significant age-related divide in check usage:
- 15% of Americans wrote a few checks a month.
- 17% wrote less than six checks a year.
- 17% wrote a check once a month.
- 4% wrote more than 12 checks a year.
Older Americans are more likely to use checks, with 15% of those aged 55 to 64 and 22% of those aged 65 and over writing a few checks a month. In contrast, younger generations are moving away from checks, with nearly half of those aged 18 to 54 not writing a single check in the past year.
The Case for Personal Checks
Despite the decline, there are still scenarios where checks are preferred. According to Fifth Third Bank, checks are often used for rent, utilities, taxes, and other government payments, as well as for paying contractors, making charitable donations, and covering healthcare and education expenses.
Checks also offer a secure way to send monetary gifts, especially through the mail. This is particularly reassuring for those who may not have reliable internet access or prefer the tangible nature of a check.
While the checkbook may be disappearing from grocery stores, it still holds value in specific situations, ensuring that it won’t vanish entirely just yet.
Be the first to comment