Paper checks are dying. Here’s what you should use instead

The cause of death should come as no surprise. From ubiquitous debit cards to the triumph of smartphone apps, electronic payments have made settling your bar tab by signing a slip of paper completely obsolete.

A 2024 study by GoBankingRates revealed that 46% of U.S. adults didn’t write a single check in the preceding year. This shift away from traditional paper checks has been accelerated by the COVID-19 pandemic, which pushed consumers towards contactless and digital payment options.

As we move into 2025, it’s clear that digital payment methods are not just convenient—they’re essential. So what should you do with that dusty checkbook?

Most major retailers no longer accept checks

Despite the fact that businesses still rely on them to remit large payments without incurring transaction fees, the era of paper checks is gradually coming to a close. In 2021, 11.2 billion checks were written in the United States—a stark decline from 18.1 billion in 2015. 

This downward trend is likely to continue, with major retailers such as Target discontinuing acceptance of personal checks as of 2024. Other big names like Aldi, Whole Foods, Old Navy, and Lululemon have followed suit, moving towards what industry experts are calling a “check zero” policy.

The GoBankingRates study found that roughly half of Gen X and younger generations have already said farewell to their checkbooks, adopting digital payments methods instead. And for good reason—a major factor in retailers’ decisions to deny personal checks is that they are easily abused by scammers. 

According to a 2024 report from the Association for Financial Professionals, 80% of respondents faced some sort of fraud attack or attempt in 2023. That’s up 15 percentage points from 2022. Far and away the most common method used in these scams? Personal checks, which accounted for a whopping 65% of the attempts.

4 alternatives to personal checks

As checks become increasingly obsolete, several alternatives have risen to take their place. Here are the top options you should be using instead:

Debit cards

The most straightforward replacement for checks, debit cards offer the same direct access to your checking account without the hassle of paper and ink. Helpful for quick access to cash, the major downside is that in the case of fraudulent activity, your hard-earned money can be wiped out quickly and take some time to be recovered.

Credit cards

Beyond convenience, credit cards offer rewards and protections that most debit cards don’t. If a scammer steals a credit card and racks up fraudulent charges, the issuing bank is out the money instead of you. However, it’s crucial to use these responsibly to avoid accumulating debt. You should only spend as much as you can pay off in the same statement cycle to avoid accumulating debt.

Money transfer apps

P2P payment apps are becoming the most common way for consumers to exchange money, especially among younger generations. Apps like Venmo, CashApp, PayPal, and Zelle make splitting bills or paying friends easy, and when used right they’re fee-free. If you need to send money to an individual or business for goods or services, there are P2P apps that offer buyer protection services while charging the recipient a small fee.

Cold, hard cash

While many have ditched cash in favor of digital payments, it still has its place. In fact, some retailers—especially small businesses—offer discounts on cash purchases so that they can avoid paying credit card processing fees. While not as trendy as digital options, cash remains a viable alternative for small transactions and can be an effective budgeting tool when used with the envelope budget.

When might you still need checks?

Despite the overall decline in use, there are still situations where paper checks might be necessary:

• Small businesses that don’t accept credit cards or charge fees for card transactions
• Paying individuals who don’t have bank accounts
• Large one-time transactions like donations or real estate deals
• Providing direct deposit information to a small employer, or ACH details to a small utility company

How to write a check

If it’s been a while since you’ve had to put pen to paper and write a check, here’s a quick refresher on how to fill in the blanks:

1. Write the date. Make sure it’s accurate, and don’t count on “post-dating” a check (writing a future date) to prevent it from being deposited or cashed.
2. Fill in the payee’s name. If you’re not sure of how to format it, make sure to get confirmation on how to fill this in. For example, some businesses may ask you to write the check out to a DBA (“doing business as…”) account instead of the name on the front of the store.
3. Write out the dollar amount in both numbers and words. Make sure your writing in these sections is nice and neat so that there’s no confusion about your intent. Both the numeric and written total should match, or the check will be rejected.
4. Add a memo (optional). It can be helpful to add a note on the memo line for future reference by both you and the recipient. An invoice number or even a short description can help prevent confusion later.
5. Sign the check. Once you’ve confirmed all of the information is correct, sign your name. It’s important to make sure this is legible and matches the signature you have on file at your bank (if applicable). Don’t skip this step—without a signature, the check can’t be processed.
6. Record the check in your ledger. This is a step that is often skipped, but is vitally important because funds are not debited from your account when a check is written. You have to keep track of them on your own, subtracting the amount from your available funds—once upon a time, “balancing your checkbook” was a basic personal finance skill. Failure to keep tabs on things can lead to costly overdraft fees if you spend more than you have available in your account.

The takeaway

While checks may not disappear entirely in the immediate future, their relevance is rapidly diminishing. The convenience, security, and speed offered by digital alternatives make them increasingly attractive to both consumers and businesses. 

As we progress through 2025, it’s clear that embracing these new payment methods isn’t just about staying current—it’s about ensuring you can effectively manage your finances safely in an increasingly digital world.

Laura Gariepy contributed to this article.