It was once a common sight – people pulling out their checkbook while in line for the grocery store. Now, one major retailer is saying “no” to the practice of paying by check.
This week, the Minneapolis Star Tribune reported that Minneapolis-based retailer Target will stop accepting personal checks in stores this month.
“Target is committed to creating an easy and convenient checkout experience, and that includes providing our guests with numerous ways to pay, including our new Target Circle Cards (formerly known as Target RedCard); cash; digital wallets; SNAP/EBT; buy now, pay later services; and credit and debit cards,” said Target company spokesman Brian Harper-Tibaldo in an email cited by the outlet. “Due to extremely low volumes, we’ll no longer accept personal checks starting July 15. We have taken several measures to notify guests in advance to aid an easy and efficient checkout experience.”
Checks are written orders to pay from a bank account, the Motley Fool explained .
“If you have an ordinary checking account, you have the option to write physical checks from it. Checks are functional orders to pay, but at the same time, they're also legal documents that come with written instructions and a signature,” it added.
Use of paper checks has been declining for more than 20 years, according to the Federal Reserve Bank of Atlanta . Per a report from the bank, consumers used checks for 7% of transactions overall in 2017 and 2018 and wrote about three checks a month and check payments in the U.S. declined at an annual rate of 7.2% a year from 2015 to 2018.
Compared to 42.6 billion check payments in 2000, there were 14.5 billion, or about one-third as many, in 2018. According to the Star Tribune, the Federal Reserve’s most recent payment choice report found that out of the average 46 monthly payments consumers made in 2023, one a month was by check. In 2016, consumers averaged three checks out of 45 payments per month.
Today, a visit to the grocery store or big box store like Target often concludes with self-checkout. Some of those kiosks don’t even accept cash, much less checks.
During the COVID-19 pandemic, more consumers began to widely use contactless virtual payments such as digital wallets and peer-to-peer (P2P) apps such as Zelle, Venmo and PayPal, said Elisa Tavilla, director of debit adviser services for payments and banking consultancy Javelin Strategy & Research, who was quoted by the Star Tribune. A 2023 North America payment insights study by Javelin Strategy & Research found that just 1% of consumers prefer to use checks when making in-store purchases.
Other retailers that have stopped accepting physical checks are Aldi and Whole Foods. On the other hand, Richfield-based electronics chain Best Buy and Cub Foods stores still accept them.
Some stores offer to scan checks and convert them into an electronic payment, according the Consumer Financial Protection Bureau . It said scans “will capture the specific numbers on the check so that it can be identified on your bank statement.”
Even though checks will no longer be accepted in physical Target stores, customers can still send checks through the mail to pay their Target Circle Card credit balance, said the Star Tribune. Members of Target Circle will also get access to deals during Target Circle Week from July 7 through July 13 .
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