Are Personal Checks Considered Cash by the US Postal Service?
When it comes to the U.S. Postal Service (USPS), personal checks are not considered cash for several reasons. The USPS prefers debit payment methods for a variety of practical and financial reasons.
Why Are Checks Not Treated as Cash?
The USPS does not treat personal checks as cash for a number of reasons. Firstly, checks are a significantly more secure and traceable form of payment compared to cash. Cash is the least preferred method of payment for the USPS due to its high cost in terms of counting and handling. Debit payments are the most preferred method, followed by charge checks, and finally cash.
What Counts as 'Cash'?
When the USPS advises against sending cash through the mail, it means exactly what it says: do not send cash in the form of greenbacks, bucks, ducats, or lucre. Checks have been a common method of mailing money for over a century and are perfectly acceptable for this purpose.
Checks Are the Most Secured Method of Sending Money
Checks provide the most secure method of sending money, especially for large amounts. Imagine leaving a $100 bill in a crowded mall—it could easily be stolen before you notice. With a check, even if a stranger finds it, they would have a difficult time cashing it without your identification and signature.
Payment Receipt and Record Keeping
Writing and documenting checks might take longer, but they provide a valuable record. In case of future disputes, a digital image from an online banking page can serve as a quick and easy proof of payment. This level of documentation is not possible with cash, making checks a more reliable option for record-keeping.
Checks as Legal Instruments
A check is essentially an 'order to pay' that is presented to a bank. If there are insufficient funds in the account, the check is worthless, which is why it is important to verify account information before processing a check.
Accounting and Financial Records
For formal accounting records, checks are categorized under the 'Cash' category, although in practice, they represent a promise to pay a promissory note. Historically, checks were simple written notes signed by debtors stating 'I owe you X dollars.' Over time, these notes evolved into the modern check to provide a more secure and traceable form of payment.
Security and Reliability
While bank notes (such as US dollar bills) are the most basic and widely accepted form of currency and are highly secure, checks can still be forged. To avoid issues, ensure the debtor is a reliable and trustworthy individual. This is a crucial factor when considering the reliability of personal checks for payment purposes.
In conclusion, personal checks are a more secure and reliable form of payment compared to cash, making them a preferred method for the USPS and a practical choice for many individuals and businesses. The unique features of checks, such as their traceability and record-keeping benefits, make them a valuable tool in financial transactions between parties.