Why is there more risk for a business when it accepts checks than debit cards?
There is more risk for a business when it accepts checks compared to debit cards because checks are a less secure form of payment.
Checks can bounce if the payer does not have enough funds in their account, leading to potential losses for the business. Additionally, checks can be easily forged or altered, increasing the risk of fraud.
On the other hand, debit cards are a more secure form of payment as funds are directly deducted from the payer's account at the time of transaction. Debit cards also typically require a personal identification number (PIN) or signature for verification, adding an extra layer of security.
Overall, accepting checks carries a higher risk of financial loss and fraud for businesses compared to debit card payments.