23 Sep Why does my bank pay some electronic bills with a check?

Q. I do most of my bank transactions online, using double factor security log in. Then I use the bank’s bill pay service to pay recurring bills. (Until recently I paid more bills with credit cards but now there are those pesky fees…) I notice that my bank pays some bills with electronic transfers while others are paid by checks sent via postal mail. The bank doesn’t charge for the postal service (at least not overtly) but these mailed checks are sent in envelopes that make it very obvious they contain checks — which presumably present check washing risk during transit. In one case, I noticed that the bank used electronic transfers initially for a particular biller but then switched to mailing paper checks. My question is why can’t my bank do all of these transactions using electronic transfers and eliminate the risk of check washing?
— Customer

A. Terrific question.

We all know that there are times when thieves steal mail, including the checks you may have written to pay bills. They then use a chemical process to remove the ink — washing the check — and then add a different payee and often, a much larger dollar figure.

Most banks use security measures with their checks to make it harder for a crook to make changes to it. But that doesn’t stop the inconvenience that happens when a payment gets lots or stolen, leaving your bill unpaid.

Electronic payments make all of that moot.

But some payees — the business that your bank is paying on your behalf — don’t accept electronic payments. So if you use online banking to pay a bill, the bank will mail a paper check.

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This story was originally published in September 2024.

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