Advantages and disadvantages of using a cheque as a mode of payment.

[KIP254]

Advantages
1. It is more secure than notes or coins.
2. It is easily portable compared to cash.
3. Cheques are convenient to use when paying large sums of money.
4. It has a counterfoil which can be used as evidence of payment.
5. In case the payee needs the money urgently, he or she can get it from the bank by discounting the cheque.
6. The drawer does not have to go to bank to withdraw money to make payments.
7. They can be used to pay someone else other than the named payee, that is third party.

Disadvantages
1. Discounting a cheque in order to receive money before maturity of the cheque attracts extra charges.
2. It takes time before it is cleared by the bank.
3. There are charges for using a cheque.
4. Cheques may be dishonoured.
5. Requires the payee to go to the bank.
6. Some people refuse cheque payments for fear of being dishonoured.
7. May require the payee to have a bank account.

 

[Alexandoy]

The banks here do not charge when you use a cheque for a transaction - withdrawing money from the bank or depositing money by cheque. The only charge you pay is when you request for a cheque booklet. That is a very minimal cost. We don't usually pay cheque to individuals because it is not in our culture to do that. We only pay by cheque to companies like an appliance store. However, they now prefer credit card so cheque payments now are very rare.

 

[Good-Guy]

When it comes to earning money online, it is the one of the worst ways to get paid. You have to wait for the cheque to arrive in your mailbox and this can take several weeks. You have to have a foreign currency account in order to cashout the cheque and this cannot be done immediately. You have to give it to your bank and they would need to confirm it and this can also take several more weeks. I think this is the main reason why cheque is no longer used as a payment method when it comes to making money online.

 

[Chibson]

I have actually not use this cheque payments but of course I have someone in my household has been using it frequently. but the advent of technology has reduced the use of cheque as a mode and method of payment. Using your mobile phone to do transfers is one of the most convenient ways and of course very secure also. Cheque in his own is time-consuming and of course many people don't use it again.

 

[Jasz]

There are many advantages to using a cheque as a mode of payment. The main advantage is that it allows for the transfer of funds from one party to another, without requiring any other financial information beyond the name of the payee and the amount. This means that if you want to pay someone who does not have a bank account, or if you want to pay someone who does not have access to their account at a local branch, you can do so easily through cheques. Additionally, some banks offer their customers free cheque spending money in order to encourage them to use their services more often.
The disadvantages of using cheques as a mode of payment include:
1. They cost money when they are written and sent back to the bank by an employee, which may be more than justifiable when compared with other modes of payment (such as bank transfers).

2. There is always an opportunity cost involved—in other words, there is always a cost associated with writing out cheques instead of sending money directly over the Internet or via mobile phones.

 

[King bell]

A cheque is a document that instructs a bank to pay a specific amount of money from one account to another. Cheques are a popular way to pay bills, send money to friends and family, and to make purchases.

There are several advantages to using a cheque as a mode of payment. First, cheques are a convenient way to pay for goods and services. Second, cheques are a safe and secure form of payment. Third, cheques are easy to track and record. Finally, cheques provide a record of the transaction that can be used for tax or accounting purposes.

There are also some disadvantages to using a cheque as a mode of payment. First, cheques can be lost or stolen. Second, cheques can be forged. Third, cheques can take a long time to clear. Finally, there is a risk that the bank could refuse to honor the cheque.

overall, cheques are a convenient and easy way to pay for goods and services. However, there are some risks associated with using a cheque as a mode of payment.