Target Stops Accepting Personal Checks Amid Changing Payment Trends

Target Stops Accepting Personal Checks: A Shift in Payment Preferences

As of this month, Target has officially ceased the acceptance of personal checks as a method of payment. This significant change may lead many to ponder: what took them so long?

In recent years, check fraud has alarmingly more than doubled, resulting in substantial financial losses for retailers. On average, it costs businesses at least a dollar to process each check they receive, prompting a reevaluation of this payment method. Furthermore, many young adults today have never even penned a personal check, highlighting a generational shift in payment habits.

If you find yourself among those who haven’t used a check in years and consider it a badge of honor, it might reveal much about your location and spending habits. Despite the decline in personal checks, several industries still rely heavily on this traditional form of payment, and in some cases, checks are mandatory.

Data from a consumer survey conducted by the Federal Reserve Bank of Atlanta provides insight into the sectors that predominantly receive payments via check:

• Contractors, such as electricians and plumbers, receive approximately 25% of their payments through checks.
• Charitable and religious organizations follow closely, with 22% of their payments made by check.
• Landlords, government taxing authorities, and professional service firms also report double-digit percentages of payments received via check.

There are numerous sectors where checks remain a requirement for transactions. Readers of the Your Money newsletter have expressed their frustrations about being compelled to write checks for various expenses, including:

• Homeowners’ association dues
• Haircuts
• Dog shows
• Long-term care insurance policies

Interestingly, some individuals appreciate this arrangement and cite diverse reasons for their preference. Emotional connections to the act of writing checks, concerns about transaction fees associated with digital payments, and a general sense of apprehension regarding the security of electronic transactions all contribute to their choice.