Question

why do people make more payments using checks than cash? Are there additional advantages for business owners to make payments by check?

Answer 1

A check refers to a negotiable instrument that is a substitute for money. In the United States Payments made by check far exceed payments made with cash because checks are safer than other forms of payment especially cash. In comparison to cash, checks are a good way to make sure that money stays secure. Checks are less attractive to thieves than cash as these cannot be cashed by just anyone; only the named payee is permitted to deposit or handle the check.

When business owners use a check, the bank makes a copy of every check that they use. Business owner can easily prove that the payment was made. However if payment was with cash, the cash is gone and disappeared forever.