As of July 15, Target, the Minneapolis-based retail giant, will no longer accept personal checks from customers. This decision reflects the declining use of checks as a payment method, a trend that has been ongoing for several years. The company cited “extremely low volumes” of check usage among its customers as the primary reason for this change.
Target remains committed to providing a seamless checkout experience for its customers. The company will continue to accept credit and debit cards, offer “buy now, pay later” services, and promote its Target Circle membership program, which automatically applies deals at checkout. The company has taken steps to inform customers about the upcoming change in its check acceptance policy.
Despite Target’s decision, several other retailers, including Walmart, Macy’s, and Kohl’s, continue to accept personal checks. However, other grocery chains like Whole Foods Market and Aldi have already discontinued accepting checks from customers.
The use of personal checks has been on a steady decline since the mid-1990s. The advent of cash-dispensing ATMs, debit cards, online banking, and mobile payment systems like Venmo and Apple Pay has significantly reduced the need for checks. Many young adults may have never written a check due to these technological advancements.
According to the Federal Reserve, Americans wrote approximately 3.4 billion checks in 2022, a significant decrease from nearly 19 billion checks in 1990. However, the average value of the checks written has increased over the years, from $673 in 1990 (equivalent to $1,602 in today’s dollars) to $2,652.
The decline in check usage has allowed the Federal Reserve to significantly reduce its national check processing infrastructure. In 2003, the Federal Reserve operated 45 check-processing locations across the country. Since 2010, it has been operating only one.
The rise in check fraud incidents has also contributed to the decline in check usage. Organized crime targeting small businesses and individuals has led to increased security measures and a general avoidance of sending checks through the mail.