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Cake day: July 17th, 2023

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  • Like cash, there’s still costs associated with them. Someone has to record the checks and take them to the bank. But more importantly, checks have an even worse risk of fraud than credit cards. A business doesn’t know that the account has sufficient funds, is even an active account, or that the check writer is even the account holder (can check ID, but what about business checks?). They can call the bank and verify funds, which obviously is awkward and time consuming, or there are 3rd party check verification services, which have to be paid for monthly. And then if someone bounces a check, often banks charge a fee to the depositor for that.