THE HOLIDAY SEASON used to be a time when we’d write and mail more checks than usual. Some were gifts to family, while others were year-end charitable donations. But with the rise in mail theft and check washing, we’ve been on a campaign to limit the number of checks we write, plus we’ve almost eliminated the mailing of checks. Here are eight things we’ve done to reduce our exposure to check fraud:
We opened a secondary no-fee checking account and opted out of the overdraft protection. We keep no more than $500 in that account and use it for any check that has to be mailed. It’s linked to our primary checking account, so we can quickly replenish it with an online transfer whenever necessary.
Either our primary checking account or a credit card is used for all bill payments that are either automatic deductions or electronic payments that we initiate. All automatic credit card payments are through one card that never leaves our house.
We bought gel pens that we use for checks that are to be mailed, since that ink is harder to “wash.”
We drop any mail that includes a check into the slot inside the post office. This doesn’t prevent an “inside job” perpetrated by a postal worker, but it cuts out the risk of theft from publicly accessible boxes.
We balance our checkbook each month, monitoring the account for any unexpected activity.
We enrolled in Zelle through our bank to send and receive payments, and had our adult children do the same. Zelle should only be used if you know and trust the payee because, once the money is sent, it isn’t retrievable.
We have also used PayPal for transactions. PayPal and similar services are best for situations where you don’t know or don’t have a trusted relationship with the payee.
We’ve moved to using a credit card to make online charitable donations. I realize the charity has to eat some fees, but that’s better than the charity not receiving the check at all. We use a check for local donations when we can deliver it by hand.
Before this latest campaign to limit the chances of fraud, we’d already converted most of our routine monthly bill paying to either electronic funds transfers or credit card payments. I also eliminated snail mail delivery of as many bills, bank statements and investment statements as possible. Now, you won’t find much in our mailbox except junk mail.
In the past 12 months, we’ve written just 11 checks. Six were handed over to the payee in person—three to the dentist, one gift and two charitable donations. Of the five that were mailed, two were payments for local taxes; I’ve since enrolled in online payments.
You might think gift cards would be a good option for gifting. Since they can’t be “washed,” at least your loss is limited to the value of the card. On the other hand, they’re effectively cash without having the hassle of needing to be washed. My brother-in-law, who lives out west, has had two greeting cards to his grandkids disappear on their way to Ohio. Both included gift cards. We’ve now explained the merits of Zelle to him.
Interesting. I must be naïve because I mailed a gift card as well as a $20 bill yesterday. I am not blind to the fact that some postal worker could make off with either or both. They probably have x-ray machines. I also have little concern about check-washing. I assume when I get burned on one of these things, I’ll change my tune. I did notice the post office no longer has the outside mail boxes. My office complex still does, so I use that box.
I also don’t write that many checks anymore. Mostly for local or state services that charge a convenience fee for online paying, like the local water bill and the state driver’s license/registration renewal. I used to write one for the annual property tax bill but now I can do an electronic check that comes direct out of my checking/debit account with no fee. I just have to enter my bank routing and account number which are on a paper check anyway.
I also use multiple accounts. One for direct deposits, one for cash, and one for a debit card. Any checks or online payments come out of the debit account, in which I just keep enough to cover any bills or checks plus an extra $300. I always try to use cash whenever possible so the extra $300 is there in case I find a great deal or something on closeout. Also, since I always try to keep the $300 balance, the account sort of auto-balances. I can tell right away when all the payments and checks clear as there should be an even $300 left, if not, then I check it out right away.
A debit card can also be used as a credit card. In fact, my bank encouraged me to use it that way so I wouldn’t have to use the pin. At most places when the system asks for you pin just hit the green return key and the system will use it as a credit card. If not, and you’re at a checkout with a person, ask them what key to press to by-pass the pin. The bypass key color has changed on some of the newer automated checkouts. I’ve only had it happen once so far.
Thanks Howard, Maybe this has been mentioned, when picking out a gift card carefully look at the barcode to see if it is shiny and not a paper copy. Crooks will take cards, copy the barcode and put it on a non valid card. Seal the paper card holder back up and wait for the barcode to be activated. They have the actual card so use it right away. Sadly, the person getting the ‘gift card’ will not have anything. This continues to happen from a grocery store in Denver that is a national chain. They are powerless to stop it so, the purchaser beware.
Interesting. I must be naïve because I mailed a gift card as well as a $20 bill yesterday. I am not blind to the fact that some postal worker could make off with either or both. They probably have x-ray machines. I also have little concern about check-washing. I assume when I get burned on one of these things, I’ll change my tune. I did notice the post office no longer has the outside mail boxes. My office complex still does, so I use that box.
A great article.
I also don’t write that many checks anymore. Mostly for local or state services that charge a convenience fee for online paying, like the local water bill and the state driver’s license/registration renewal. I used to write one for the annual property tax bill but now I can do an electronic check that comes direct out of my checking/debit account with no fee. I just have to enter my bank routing and account number which are on a paper check anyway.
I also use multiple accounts. One for direct deposits, one for cash, and one for a debit card. Any checks or online payments come out of the debit account, in which I just keep enough to cover any bills or checks plus an extra $300. I always try to use cash whenever possible so the extra $300 is there in case I find a great deal or something on closeout. Also, since I always try to keep the $300 balance, the account sort of auto-balances. I can tell right away when all the payments and checks clear as there should be an even $300 left, if not, then I check it out right away.
A debit card can also be used as a credit card. In fact, my bank encouraged me to use it that way so I wouldn’t have to use the pin. At most places when the system asks for you pin just hit the green return key and the system will use it as a credit card. If not, and you’re at a checkout with a person, ask them what key to press to by-pass the pin. The bypass key color has changed on some of the newer automated checkouts. I’ve only had it happen once so far.
Thanks Howard,
Maybe this has been mentioned, when picking out a gift card carefully look at the barcode to see if it is shiny and not a paper copy. Crooks will take cards, copy the barcode and put it on a non valid card. Seal the paper card holder back up and wait for the barcode to be activated. They have the actual card so use it right away.
Sadly, the person getting the ‘gift card’ will not have anything.
This continues to happen from a grocery store in Denver that is a national chain. They are powerless to stop it so, the purchaser beware.