(DailyVantage.com) – Due to the steady decline of check payment usage over the last few years, several major retailers plan to stop accepting checks in favor of alternate forms of payment like cash or credit cards.
One such retailer is Target, which announced in a recent statement that it would stop accepting check payments on July 15th. Target’s statement cited the rarity of check payments amongst its customer base when explaining why it would stop accepting customer checks. The statement also featured information about Target’s attempts to inform customers before it stops accepting check payments to avoid confusing customers.
Target’s statement briefly addressed customers’ potential concerns about its decision to stop accepting check payments. According to the statement, Target’s other accepted payment methods are more accessible and convenient for the retail chain’s staff and customers. Target has also shared information about payment methods that customers can still use at the store, including cash, credit cards, digital payments using iPhones or Samsung smartphones, EBT, and buy now, pay later. The statement confirmed that checks wouldn’t be accepted, nor would payments made with foreign currency or money orders work at Target locations.
Target’s decision to stop accepting checks comes just weeks after the United States Federal Reserve released information about the decline in check usage nationwide. The Federal Reserve uncovered data about declining check usage during its recent payments study, which found that check usage has decreased approximately 7.2 percent annually since 2018. Although check usage has declined since 2018, the value of checks has increased due to the increasing rarity of check payments. The Federal Reserve also found that checks remain a popular form of payment for expensive payments, including housing and vehicle repairs.
Economic experts have noticed the Federal Reserve’s recent study and believe the decline in check usage likely stems from the COVID-19 shutdown and the rise of digital payment methods like Apple Pay. Experts claim that as technology makes contactless payment methods more accessible, check usage will continue to decline. Should check usage continue to fall over the next few years, other major retailers will likely follow Target’s example and stop accepting customer check payments.
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