Money Tips: Check By Fax Vs. Check By Mail

Sending a check by FAX is a new technology that's been available for about a decade. If you're considering using this payment method, read this informative article to find out the pros and cons of check by fax and check by mail.

Since an estimated seventy million residents of the United States have checking accounts, but no major credit cards, it's no wonder they look for other ways to make payments and purchase products and services. Besides using a credit card, the next common way to pay bills and make payments is to send a check by using the United States Postal Service (USPS).

There are pros and cons about sending bank drafts in the mail. One of the pros is that it's easy to do and most anyone can use this method. As long as you have access to your mailbox, you can send checks to pay for your monthly utility bills, credit card bills, newspaper delivery, car insurance, and more. Most product and service providers readily accept personal checks. The only materials that you need are envelopes - which are normally included with your bills- and first class stamps. If, by chance, your supply runs out, the USPS has envelopes that allow you to order and pay for additional stamps. You can use these envelopes to buy first class, as well as other denominations of stamps.

One of the cons of sending a check by mail is that sometimes, mail does get lost or stolen during its journey through the postal system. And a lost or stolen check can mean a lot of hassles for you, including a call from the recipient wanting to know where your payment is.



Another con of sending a check is that, while it may not get lost in the mail, its delivery time may be delayed because of severe weather, an extreme load of mail going through the USPS, (such as at Christmas time), and other factors.

Now, let's look at another method of sending a check, but sending it via a FAX machine instead of putting it in a mail box. A check by FAX, which is also known as a check demand draft, is a relatively new means of making payments. To use this method, you normally need to set up a FAX authorization ahead of time with the companies that you want to pay this way. Then, once that's completed, you simply fill out a check out of your bank account as you normally would. Finally, you FAX the check to the intended recipient.

One of the most important cons, of course, is that, unless you have a FAX machine in your home, then using this method for paying your bills is not an option for you. Another con is that not every company or service provider accepts this type of payment yet.

Using this method for paying your bills does have its advantages though. One of the most important pros of using a check by FAX for paying your bills is that your check goes directly from your FAX machine to the recipient's FAX machine in just a number of seconds. Paying a bill couldn't be faster! This factor can be especially important if you have an overdue account that needs a payment, say for example, before midnight on a certain date. And, your check can't get lost in the mail or stolen either.

Using a FAX machine has another advantage in that it eliminates postage costs. In fact, the only cost you would incur would be the few cents of electric it might cost you to operate the machine.

When the recipient receives your check demand draft, they simply deposit it into their bank account, and the amount of the check is paid to them by your bank.

So, which is the best method of payment, a check by mail or a check by FAX? The answer to that question depends on your specific circumstances. You'll need to weigh the pros and cons of each method of payment and decide which one best suits your needs.

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