As a longtime retail industry expert and avid shopper, I know firsthand how important it is to stay informed about store payment policies. One question that comes up frequently is whether certain retailers accept personal checks. Today, we‘ll take an in-depth look at Kohl‘s check policy, examining the pros and cons of this payment method and how Kohl‘s approach compares to other major retailers.
The Decline of Checks as a Payment Method
First, let‘s step back and look at the bigger picture of checks as a payment method. Checks have a long history dating back to ancient civilizations, but their use has steadily declined in recent decades. According to the Federal Reserve, the number of checks paid in the United States fell from 37.3 billion in 2000 to just 14.5 billion in 2018, a decrease of more than 60%.
Several factors have contributed to this decline:
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Rise of electronic payments: Credit cards, debit cards, and digital wallets have become increasingly popular, offering convenience, security, and rewards.
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Generational shifts: Younger consumers, such as Millennials and Gen Z, are less likely to use checks and may not even have a checkbook.
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Fraud concerns: Checks can be a target for fraud, as they contain sensitive personal and financial information.
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Processing costs: For retailers, accepting checks can be time-consuming and costly compared to electronic payments.
Despite these trends, some consumers still prefer to pay by check for various reasons, such as better budgeting, record-keeping, or simply personal preference. So where does Kohl‘s stand on accepting this declining but still relevant payment method?
Kohl‘s Current Check Policy
As of 2023, Kohl‘s does not accept personal checks as payment for either in-store or online purchases. This policy has been in place since 2016, when the retailer stopped accepting checks for most transactions. Kohl‘s made this decision to streamline the checkout process and reduce potential fraud.
However, there is one exception to this policy. Kohl‘s does allow customers to pay their Kohl‘s Charge Card bill by personal check. Kohl‘s Charge is the retailer‘s branded credit card, which offers benefits like discounts and Kohl‘s Cash rewards. Cardholders can pay their monthly bill by mailing a check along with their billing statement, or by bringing a check to the customer service desk in-store.
Aside from this exception, Kohl‘s accepts the following payment methods:
- Credit cards (Visa, Mastercard, American Express, Discover)
- Debit cards
- Kohl‘s Gift Cards
- Kohl‘s Coupons and Kohl‘s Cash
- PayPal (online only)
- Sephora Gift Cards (only for Sephora at Kohl‘s purchases)
The Pros and Cons of Paying by Check
So why might a shopper still want to pay by check, and why have many retailers like Kohl‘s phased them out? Let‘s look at some of the advantages and disadvantages of this payment method.
Advantages for consumers:
- Budgeting: Writing checks can help some people stick to a budget by keeping spending tangible and avoiding credit card debt.
- Record-keeping: Checkbooks provide a physical record of spending, which some consumers find helpful.
- Security: Some shoppers may feel more secure not sharing credit card information with multiple retailers.
Disadvantages for consumers:
- Inconvenience: Writing checks takes longer than swiping a card or using a mobile wallet, and not all retailers accept them.
- Lack of rewards: Unlike credit cards, checks don‘t offer cashback, points, or other incentives.
- Potential fees: Some retailers charge a returned check fee (usually around $25-35) if a check bounces.
Advantages for retailers:
- Low processing fees: For small businesses, check processing fees may be lower than credit card fees.
- Attracting older customers: Some older shoppers still prefer checks and may choose retailers that accept them.
Disadvantages for retailers:
- Slower checkout: Check transactions take longer to process, which can lead to longer lines and wait times.
- Higher risk of fraud: Checks can be forged, altered, or bounced, leaving the retailer liable for the loss.
- Processing costs: While fees may be lower than cards, checks still require time and resources to process and deposit.
How Kohl‘s Approach Compares to Other Retailers
Kohl‘s is not alone in moving away from accepting checks. Many large retailers have restricted or eliminated check payments in recent years:
- Walmart: Accepts checks but requires government-issued ID and check approval through TeleCheck.
- Target: Accepts checks with a valid photo ID for in-store purchases only.
- Best Buy: No longer accepts checks as of 2008.
- Amazon: Does not accept checks for online purchases.
However, some retailers still welcome checks, particularly those catering to older customers:
- Bed Bath & Beyond: Accepts checks with a valid photo ID.
- Macy‘s: Accepts checks with a valid photo ID for in-store purchases.
- JCPenney: Accepts checks with a valid photo ID for in-store purchases.
Interestingly, some retailers have taken a hybrid approach. For example, Home Depot accepts checks for in-store purchases but not for online orders or at self-checkout lanes. This allows them to serve check-writing customers while still encouraging faster, more secure payment methods.
The Future of Retail Payment Methods
As checks continue to decline and digital payments rise, what does the future hold for retail transactions? Here are a few trends and predictions:
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Contactless payments: The COVID-19 pandemic accelerated the adoption of contactless cards and mobile wallets like Apple Pay and Google Pay. According to Mastercard, contactless payments grew 40% globally in the first quarter of 2020 alone.
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Biometric authentication: Some retailers are experimenting with facial recognition and fingerprint scanning to verify payments. In 2020, Amazon launched its Amazon One palm-scanning payment system at select stores.
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Cryptocurrency: While still a niche payment method, some major retailers like Overstock.com and Newegg have started accepting Bitcoin and other cryptocurrencies.
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Buy now, pay later: Services like Affirm, Afterpay, and Klarna, which allow customers to split purchases into installment payments, have exploded in popularity. A 2021 C+R Research study found that 60% of U.S. consumers have used a BNPL service.
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Loyalty integration: More retailers are linking payments to loyalty programs for a seamless checkout experience. For example, the Kohl‘s App allows customers to pay with their Kohl‘s Card, apply coupons, and earn Kohl‘s Cash in one transaction.
As these innovations gain steam, traditional payment methods like checks will likely continue to fade. However, retailers will need to balance adopting new technologies with serving customers who may resist change or lack access to digital options.
Conclusion: Checks, Kohl‘s, and the Savvy Shopper
In summary, Kohl‘s check policy reflects the broader retail industry‘s shift away from this once-common payment method. While Kohl‘s does not accept personal checks for in-store or online purchases, it does allow Kohl‘s Charge cardholders to pay their bill by check.
For shoppers, the decision to pay by check or use another method depends on personal preferences, budgeting needs, and which retailers they frequent. As a savvy shopper myself, I generally opt for credit cards to earn rewards and enjoy a quick, secure checkout. However, I appreciate that some consumers still value checks for their simplicity and tangibility.
Looking ahead, the retail payment landscape will likely continue to evolve, driven by technological innovation, changing consumer habits, and global events. Merchants like Kohl‘s will need to adapt to these changes while still providing a range of options to meet their customers‘ diverse needs.
Ultimately, the most important thing is to stay informed about your payment options and choose the method that best aligns with your financial goals and shopping habits. By understanding retailer policies, weighing the pros and cons of each payment type, and keeping an eye on industry trends, you can navigate the complex world of retail with confidence and make the most of every transaction.
