Target has joined the ranks of US retailers, such as Whole Foods and Aldi, in no longer accepting checks as a form of payment. This decision comes as check usage continues to decline and check fraud cases have nearly doubled since 2020. The Federal Reserve processed 17 billion checks in 2000, compared to just 3 billion today. While the average person still writes at least nine checks a year, the rise in check fraud has led to financial losses for merchants who lose merchandise and incur charges from banks for returning uncollectable checks. As a result, more retailers are likely to follow suit and stop accepting checks. Encouraging customers to use cash may help curb check fraud and potentially lower prices for honest consumers.
According to a recent analysis by Jay Zagorsky on Rhode Island Current, the decline in check usage and the rise of check fraud in the US have prompted many stores to give up on accepting checks as a form of payment. Target, Whole Foods, and Aldi are among the retailers that have stopped accepting checks. Check usage has fallen dramatically in recent decades, with the Federal Reserve processing 17 billion checks in 2000 compared to just 3 billion today. At the same time, check fraud cases have nearly doubled since 2020, leading to financial losses for merchants. The US Treasury reports a doubling of check fraud cases from 2021 to 2022. Target's recent announcement is likely to be followed by other chains as more retailers aim to combat check fraud. Retailers may encourage the use of cash as an alternative payment method to help curb check fraud and protect themselves from financial losses.
The decline of check usage and the rise of check fraud have significant implications for the retail industry. Merchants face financial losses due to check fraud, as they lose merchandise and incur charges from banks for returning uncollectable checks. This has prompted many retailers to reevaluate their acceptance of checks as a form of payment. Target's decision to stop accepting checks is part of a larger trend in the industry, and more retailers are expected to follow suit. By encouraging customers to use cash instead, retailers may be able to curb check fraud and potentially lower prices for honest consumers.
Overall, the decline of check usage in US retail and the rise of check fraud have prompted many stores, including Target, Whole Foods, and Aldi, to stop accepting checks as a form of payment. The decrease in check usage, coupled with the increase in check fraud cases, has led to financial losses for merchants. To combat check fraud, retailers may encourage the use of cash as an alternative payment method. This trend is likely to continue as more retailers aim to protect themselves from check fraud and its associated costs.