Why is there more risk for a business when it accepts checks than debit cards?
A. Checks are paper and debit cards are plastic.
B. Debit cards are FDIC insured and checks are not.
C. There is a limit on the amount for checks, not debit cards.
D. A debit card is approved electronically while check are not.
D. A debit card is approved electronically while checks are not.
Checks can bounce if there are insufficient funds in the account, whereas debit card transactions are instantly verified for available funds before being approved. This poses a higher risk for businesses when accepting checks compared to debit card payments.