Grocery stores taking check use off shoppers' lists

[snopes]

Long before banks started locating branches inside supermarkets, grocery stores acted as informal financial establishments, cashing payroll checks and personal checks to provide ready cash for their customers. That's starting to change.

Whole Foods Market Inc. is considering banning the use of personal checks at its stores and stopped accepting checks at two stores in Los Angeles County and one in Arizona as a test.

http://www.latimes.com/business/la-f...,7679089.story

[JoeBentley]

Honestly aren't checks one of those things that it's about time they went away? For normal everyday retail POS transactions what advantage does a check have for the seller, the consumer, or the bank at this point?

[stagemanager0610]

Originally Posted by JoeBentley

Honestly aren't checks one of those things that it's about time they went away? For normal everyday retail POS transactions what advantage does a check have for the seller, the consumer, or the bank at this point?

Exactly. As long as they still accept personal checks as payment for products, I see no problem with this process. There should be no reason to cash a payroll check in the checkout line, IMO.

[Roadsterboy]

It used to amaze me how many personal checks we'd get at the store I worked at, even for smaller amounts. I will say that it was usually people in my parents' age range, and not too much younger, who wrote many of them. Habit, I guess-my mother was like that for years until we finally managed to convince her that a debit/atm card would be easier than writing checks everywhere and having to go to the bank each time she needed cash.

Originally Posted by stagemanager0610

Exactly. As long as they still accept personal checks as payment for products, I see no problem with this process. There should be no reason to cash a payroll check in the checkout line, IMO.

I'm a little confused by your statement-you have no problem with which process-eliminating checks for payment, or cashing them? Then why not pay checks? Just askin', it doesn't quite make sense to me.

I can't imagine a store cashing a paycheck these days, except maybe in tiny rural towns where the nearest bank/check cashing place is a significant distance away. We do have a local grocery store that (I believe still) cashes checks for customers, but it's personal checks only, and you have to go to the customer service desk to do it.

-RB

[Lainie]

Originally Posted by JoeBentley

Honestly aren't checks one of those things that it's about time they went away? For normal everyday retail POS transactions what advantage does a check have for the seller, the consumer, or the bank at this point?

For a consumer who's living paycheck to paycheck, being able to write a check may mean being able to buy groceries a day earlier (payday is Friday, go shopping Thursday). Obviously, it would be better not to live so close to the bone, but the fact is some people do.

[stagemanager0610]

Originally Posted by Roadsterboy

I'm a little confused by your statement-you have no problem with which process-eliminating checks for payment, or cashing them? Then why not pay checks? Just askin', it doesn't quite make sense to me.

Sorry about that - I meant that what dosen't make sense to me that someone would cash their paycheck in the grocery line. I talked to my mom, who lived in the time when that apparently was more common, but I'm just so used to cashing everything at a bank that it seems wierd to me.

I also kind of agree that I'm sick of having to use checks, but I can see where it would be helpful to someone living paycheck to paycheck.

If all this still confuses everyone, let's write it off as one of my usual brainfarts.

[Lainie]

Originally Posted by stagemanager0610

Sorry about that - I meant that what dosen't make sense to me that someone would cash their paycheck in the grocery line.

They don't, IME. They do it at the customer service desk. Some people don't have checkign accounts.

[Eddylizard]

No snark, but how common is it for employees in the US to be paid by cheque (or check if you prefer)? Almost everyone here that is an employee (as opposed to self employed) has their wage paid directly into their bank account. Sometimes one might join the company too late for the first period's wage (or part wage) to be set up, so a cheque is issued. After that, unless they are slack and run into the second month, it is direct transfer via BACS.

I've never known of any major store that was willing to cash a personal cheque - then again I never tried - I think it would have been futile trying. A small corner shop where I used to live sometimes would do this for me, but we are talking ten or twenty pounds - not a whole months wages or the equivalent. Too much risk for the merchant.

AFAIK no major retailer here has accepted cheques for purchases for at least a year - maybe three.

[snopes]

Originally Posted by stagemanager0610

Sorry about that - I meant that what dosen't make sense to me that someone would cash their paycheck in the grocery line. I talked to my mom, who lived in the time when that apparently was more common, but I'm just so used to cashing everything at a bank that it seems wierd to me.

You have to keep in mind that until about the 1980s, banks typically closed at 3:00 PM (except for Friday, when they stayed open until 6:00 PM) and were not open on weekends at all. So many working people who couldn't get to banks during those limited weekday hours had to find alternative means for cashing checks.

[Lainie]

Originally Posted by Eddylizard

No snark, but how common is it for employees in the US to be paid by cheque (or check if you prefer)? Almost everyone here that is an employee (as opposed to self employed) has their wage paid directly into their bank account. Sometimes one might join the company too late for the first period's wage (or part wage) to be set up, so a cheque is issued. After that, unless they are slack and run into the second month, it is direct transfer via BACS.

Most employers offer direct deposit, and encourage employees to use it -- it's cheaper for the employer. But not everyone takes advantage of it.

AFAIK no major retailer here has accepted cheques for purchases for at least a year - maybe three.

Yup, we've had this conversation before. Checks are far more commonly used in the US than in the UK.

[Eddylizard]

Originally Posted by Lainie

Some people don't have checkign accounts.

Indeed they don't. I don't. However anyone with at least £1 to start with can open a savings account into which they can pay cheques, and withdraw the funds in cash once they have cleared. My £1 balance savings account comes with a debit card.

Yes the interest rate is somewhere in the 2 x 10^-3 area on my £1 right now, but it lets me use their conveniently located bank branch to pay my bills (in cash at the counter) without incurring a £15 fee. "Oh you're a customer, yes no charge for making that payment"

[Lainie]

Originally Posted by Eddylizard

Indeed they don't. I don't. However anyone with at least £1 to start with can open a savings account into which they can pay cheques, and withdraw the funds in cash once they have cleared. My £1 balance savings account comes with a debit card.

Some people don't have any bank accounts. And some people don't feel comfortable giving access to their account to their employers.

Personally, I've had nothing but direct deposit for about 20 years, and can't imagine doing anything else.

I do, however, have to cash at least one check a month, because that's how my ex pays his child support.

[Morgaine]

Originally Posted by Eddylizard

No snark, but how common is it for employees in the US to be paid by cheque (or check if you prefer)? Almost everyone here that is an employee (as opposed to self employed) has their wage paid directly into their bank account. Sometimes one might join the company too late for the first period's wage (or part wage) to be set up, so a cheque is issued. After that, unless they are slack and run into the second month, it is direct transfer via BACS.

I have a side job with a very small company & when I work for them I still get a regular paper check. My last job gave you the option of paper or electronic transfer.

I still occasionally find a need for paper checks but rarely. I think I write one from the joint account about once a month & if I could do direct transfer I would in a heartbeat.

[Black Sunshine]

I like having checks. When I am out and about, I do almost always use my debit card to pay for purchases. However, I write checks to pay all of my monthly bills. With the exception of my rent, I could set up auto bill pay on all of my bills. I write checks for all of them though. I have a tendency to be a bit forgetful sometimes. Especially if I have a lot going on. I'm afraid if I did the auto bill pay, I would forget about a bill being paid and possibly overdraw my account. I will truly hate it if (more like when) checks go away.

[Christie]

Originally Posted by Morgaine

I still occasionally find a need for paper checks but rarely. I think I write one from the joint account about once a month & if I could do direct transfer I would in a heartbeat.

Aside from occasional birthday gift cheques I find I rarely write cheques anymore either in my personal life but at work it's a different story. I usually write anywhere from 15 to 30 cheques (sometimes more) every month.

I wonder if this is still the most common way to do things for most small businesses, charities etc? In our case it's done mainly, I think because each cheque requires two signatures.

[FrogFeathers]

Originally Posted by Lainie

For a consumer who's living paycheck to paycheck, being able to write a check may mean being able to buy groceries a day earlier (payday is Friday, go shopping Thursday). Obviously, it would be better not to live so close to the bone, but the fact is some people do.

We get paid once a month (direct deposit, VA disability), so we do that for the "big" grocery shop. We don't do it every month, but we do it more often than not. Being able to write that check a day early is handy.

The rest of the month, I use debit card or cash. I don't think our grocery store will ever get rid of the check policy. I wish they'd lose the option to write it over the purchase to get cash back. Some people will buy a few bucks worth of stuff, then write a check for $20 over. That's just a peeve of mine. I'm not sure if the store or store people even care.

Originally Posted by Eddylizard

No snark, but how common is it for employees in the US to be paid by cheque (or check if you prefer)? Almost everyone here that is an employee (as opposed to self employed) has their wage paid directly into their bank account. Sometimes one might join the company too late for the first period's wage (or part wage) to be set up, so a cheque is issued. After that, unless they are slack and run into the second month, it is direct transfer via BACS.

The most recent job I had- 2006 sporadically till January 2008- gave paychecks in actual paycheck form. They only had six employees. When they announced they were now able to do the direct-deposit, I was the only one of six who took them up on it.

Kat's current job only has two employees (and the two owners work with her) and she not only gets a check, she gets a hand-written check directly from the owner. All my previous jobs (the small recent one included) had the printed-from-an-accounting-office type of check.

[Steve Eisenberg]

I think that they could save a whole lot more money by refusing to take cash rather than checks. Not to mention that a cashless store is much less likely to face a murderous armed robbery, so they would save lives as well.

[Gibbie]

When I first moved to Evansville, the company I went to work for only did direct deposit if you banked at one specific local bank. I not only didn't bank with them, my credit union does not have a branch within six hours of me. So I received a paper check and *mailed* it to my credit union for deposit each week. After about three years they finally set up direct deposit with anyone.

Gibbie

[Eddylizard]

Originally Posted by Steve Eisenberg

I think that they could save a whole lot more money by refusing to take cash rather than checks. Not to mention that a cashless store is much less likely to face a murderous armed robbery, so they would save lives as well.

You have a point, but when I go down to the local shop for a newspaper and a chocolate bar, it would feel kind of ridiculous to whip out a debit/credit card or write a cheque for 86p. So I don't think we can erase cash completely.

Maybe a cash maximum? Over £50 or something no cash accepted?

However as has been said, not everyone yet has an account which they can make direct payments from. Some have to draw the money out in cash before spending it. A facsimile of a dead president (in the US) or HM the Queen (in the UK) or some strange generic building thing (in the Eurozone) is still universally accepted, and that is unlikely to change anytime soon.