The global trend is clear: paper checks are becoming obsolete. Germany is phasing them out by the end of 2027, and Australia plans to do the same by 2030. Even in the United States, President Donald Trump has ordered the federal government to stop writing checks. But despite these moves, paper checks remain a significant part of the American financial landscape.
In 2026, approximately 9.2 billion checks were written in the U.S., with a total value exceeding US$24 trillion. This figure is nearly as large as the country’s gross domestic product of $29 trillion that year. The persistence of checks raises an important question: Should the U.S. follow the lead of other nations and eliminate this traditional payment method?
The evolution of check usage in the U.S.
Check usage has dramatically declined since the turn of the millennium. In 2000, the average American wrote over 150 checks per year. By 2026, this number had plummeted to just 27 checks annually. However, the value of these checks has increased significantly. In 2000, the average check was worth less than $1,000. By 2026, this amount had more than doubled to $2,600.
The Bank for International Settlements which tracks payment trends across 25 countries, has found that the U.S. is one of the few nations where checks are still commonly used. Even in these countries, check usage has declined more sharply than in the United States. This data suggests that while checks are less common, they still play a crucial role in the American economy.
Who still uses paper checks?
Despite the decline in check usage, certain demographics and businesses continue to rely on this payment method. According to the Federal Reserve Bank of Atlanta roughly one-third of Americans used a paper check in the past 30 days. The data reveals significant differences in check usage by age. About 60% of people aged 65 and over reported writing checks, compared to less than 6% of those aged 18 to 24.
Many people are unaware that they still use checks. When banks cannot process online bill payments electronically, they often issue paper checks on the user’s behalf. Additionally, small businesses are significant users of checks. Over 80% of businesses with sales between $1 and $10 million use checks for payments. This practice provides small business owners with better control over their finances and helps them avoid credit card processing fees.
The future of paper checks
While paper checks remain relevant, they are not without issues. One major problem is the risk of bounced checks. In 2026, the Federal Reserve returned about 22 million checks, with a total value of around $80 billion. Although this represents a small fraction of all checks written, it highlights a significant drawback of this payment method.
Another concern is check fraud. Thieves often steal checks from mailboxes, alter the information, and cash them. In 2026, there were approximately 500,000 cases of check fraud in the U.S. While this number is relatively small compared to the total number of checks written, it remains a significant issue.
The Federal Reserve is considering leaving the check processing business due to these problems. In early 2026, it accepted public comments on whether to wind down, improve, or leave alone its check processing unit. The unit, which costs about $100 million a year to run, turned a $6.6 million profit in 2026. However, the need to replace aging machines has left the Federal Reserve hesitant to invest further in check processing.
Should paper checks be eliminated like the penny, which the federal government stopped minting in 2026, and the haypenny, which hasn’t been produced since 1857? The answer is not straightforward. While checks are less important today than in the past, the numbers show that Americans and businesses still use and need them. The enduring role of paper checks in the digital age highlights the complexity of transitioning to a cashless society.
