• ilinamorato@lemmy.world
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    11 hours ago

    Corporations still use checks—particularly to pay debt and penalties and such—because it’s a better deal for them: the debt is counted as having been paid immediately, but it takes a few days for the money to actually transfer. That’s more time for that money to generate interest for them. On a payment of millions, that’s worthwhile to them. Electronic transfers remove the money from the sending account immediately, so they don’t get that extra bonus interest.