Target Has Stopped Accepting Personal Checks

In a sign of the changing times, Target has announced that it will no longer be accepting personal checks as a form of payment beginning July 15, 2024. The company claims to have made the announcement in a timely manner, with enough of a warning in advance to allow consumers to prepare and adapt to this new development.

“Due to extremely low volumes, we’ll no longer accept personal checks starting July 15. We have taken several measures to notify guests in advance to aid an easy and efficient checkout experience.”

Target statement via USA Today

This decision is justified by Target’s reasoning that explains how personal checks have been on a decline according to data from Federal Reserve Financial Services, with fewer and fewer consumers using it as a form of payment. According to this data, as little as 3% of purchases were made with personal checks in 2023, further reduced from 7% just three years earlier during the onset of the global pandemic.

There are still multiple payment methods available as options for consumers. In addition to the standard methods such as cash, debit, and credit cards, shoppers can use SNAP/EBT, digital wallets, buy now, pay later, and Target Circle cards.

This decision by Target follows a broader trend that has been noted by the Federal Reserve and its data that shows how unpopular personal checks have become as a form of payment.

Furthermore, there has been more awareness of how personal checks are more prone to fraud, being lost, or stolen. Another negative aspect of personal checks is how they also leave more room for errors that can cause a chain reaction of problems for companies and business relations.

Even with this knowledge and data, checks are still being used extensively in the industries of construction, real estate, and retailer B2B transactions.