Target Corp. has announced that it will permanently discontinue the acceptance of personal checks at its stores, effective July 15.
This decision comes in response to a significant decrease in the usage of personal checks as a payment method. In a statement Target explained, “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.”
The decision to stop accepting personal checks is part of a broader trend among retailers adapting to changing consumer payment preferences. Despite the impending change, Target will still allow customers to use personal checks through the duration of its Target Circle Week sale, which runs through Saturday.
Even after the discontinuation of personal checks in-store, Target will continue to accept a variety of other payment methods. Customers can still pay with cash, debit and credit cards, digital wallets, SNAP/EBT, and buy now, pay later options. Additionally, payments to the Target Circle Card can still be made by personal check via mail, offering a degree of flexibility for customers who prefer this method.
The decision to phase out personal checks reflects broader trends in payment behaviors. Data from the Federal Reserve highlights a steady decline in the use of personal checks over the years. In 2023, checks accounted for only 3% of all payments, down from 4% in the two preceding years and a significant drop from 7% in 2020. Conversely, the majority of transactions last year were conducted using credit or debit cards, which made up 62% of all payments. Cash was the second most popular method, representing 16% of payments.
Target’s move aligns with actions taken by other major retailers who have already phased out personal checks. Notably, Aldi and Amazon-owned Whole Foods Markets have also stopped accepting checks at their stores. This shift underscores the increasing adoption of digital and card-based payment methods among consumers and retailers alike.
In addition to these changes, Target continues to offer various promotions and benefits to its customers. The ongoing Target Circle Week sale is an example of the company’s efforts to provide value and convenience to its shoppers. By notifying customers well in advance of the change, Target aims to ensure a smooth transition and minimize any inconvenience caused by the discontinuation of personal checks.
This strategic decision by Target reflects a broader industry trend towards modernizing payment methods to align with consumer preferences. As technology advances and consumer behavior evolves, retailers are increasingly focusing on digital payment solutions that offer enhanced security, convenience, and efficiency. The decline in the use of personal checks is part of a larger shift towards a cashless society, where digital and card-based transactions dominate.
Target’s stock (TGT) has seen positive movement recently, closing at $148.72 with a gain of 3.07 points, or 2.11%. This positive performance is indicative of investor confidence in the company’s strategic decisions and its ability to adapt to changing market dynamics.
Overall, Target’s decision to stop accepting personal checks is a reflection of broader payment trends and the company’s commitment to providing a seamless and efficient shopping experience for its customers. As more consumers embrace digital payment methods, retailers like Target are poised to continue evolving and enhancing their payment options to meet customer needs.
