Some Stores Opt for Credit Cards Instead of Checks

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In what could seem like a bad joke to many consumers, it now looks that some retailers will stop accepting checks as a form of payment. Instead, consumers would have to use cash, a credit card, or a debit card to purchase goods. According to an article in the L.A. Times, the two companies that have decided to do this are Whole Foods Market Inc., and Fresh & Easy Neighborhood Market, the California division of British retailing giant TESCO Plc.

 

For Whole Foods Market Inc., a test is now taking place with two stores located in California, and one store located in Arizona. For the Fresh & Easy Neighborhood this apparently has been taking place for a while now as personal checks are not be accepted at any of the 70 stores it operates in California.

 

So why would any company decide to opt for credit cards and debit cards, instead of checks? The answer is that checks are seen as time consuming, as well as an expensive service when many retailers are looking for ways to reduce business cost. With almost every store around the country cashing checks is far more expensive than any processing fee associated with card purchases.

 

I guess the real question is how will consumers react if this approach is adopted by many more retailers both inside and outside the grocery market.