Comment Checks still exist because of EFT fees (Score 1) 144
Checks are inconvenient and hideously insecure, but they remain the one way for an American to (sort of) safely send money to a person or company without both parties physically present that doesn't necessarily result in third-party fees for either party. That's the problem banks have to solve to get rid of paper checks.
In my town, you can pay your taxes in cash (at the town hall, during limited hours, in person), by mailing in a check for the exact amount, or via credit card—which results in a 2.5% surcharge to cover the cost of using the credit-card network. Paying in person isn't a realistic option for most folks, as you'd need to take time off from work to do it. For a $2,500 property-tax bill, that's an extra $62.50, which isn't a negligible fee. Even factoring in the cost of the stamp and the envelope, it's way cheaper to mail them a check. The stamp is even cheaper than the cost for fuel and lost time to drive down and pay in cash.
And it'll get worse now that credit-card companies can charge different processing rates based on the rewards tier of your credit card, and merchants can pass along that variable rate as a surcharge to your bill...