Relating to, relying on, or primarily using checks as a method of payment, verification, or control. This term often describes systems, processes, or financial activities where paper checks are the dominant mechanism. It can also refer to scenarios where examining or verifying something is akin to performing a 'check' function. The usage reflects the historical context of widespread check usage or contrasts with modern, electronic alternatives. Its usage is often more prominent when contrasting or comparing with online or electronic payment methods.
Check-based meaning with examples
- Before the digital age, a substantial portion of business was conducted through a check-based system. Suppliers would receive payment via check, and they would have to deposit this check at their bank. Companies relied heavily on physical checks for payroll, accounts payable, and day-to-day operations.
- Though increasingly rare, some individuals and organizations still prefer a check-based approach. For certain vendors, specifically individuals, writing a physical check is the accepted and sometimes only method of payment. They may lack credit card facilities or avoid digital tracking.
- Financial institutions once had significant resources dedicated to check-based processing. This involved sorting, imaging, and clearing checks to verify funds and complete transactions. With advancements in electronic payment, these check processing centers have substantially reduced in size or been repurposed.
- The transition away from a check-based system is ongoing, with electronic methods gradually displacing the use of physical checks. However, checks remain essential in some situations, particularly for certain business transactions or those involving personal payments.
- The older accounting system was entirely check-based, requiring manual processing of all transactions. Every payment was initiated via a physical check and recorded painstakingly by hand. Compared to digital solutions, this system was slow and prone to errors. The company's conversion to digital payment solutions aimed to improve efficiency and reduce risks. It also highlighted the limitations of the historical check-based framework.
- Due to the client's limitations, our agency had to implement a check-based refund process, which was complex and slow. The client had to go through a full paper record for verification. It meant that the agency would issue the check with the corresponding documentation attached. Unlike credit card refunds, the system wasn't very user friendly and involved a lengthy wait time for processing
- The audit involved a check-based reconciliation of all financial records. The auditors conducted a thorough review of paper trails and physical receipts. To verify the transaction's authenticity, the auditors had to examine each transaction, making sure the check's information lined up. This meticulous process aimed to identify discrepancies. This contrasted with contemporary electronic record-keeping and verification methods
- Many small businesses were initially check-based for their accounts payable and accounts receivable, but have since switched to online methods. Many prefer using digital platforms as it simplifies banking operations and reduces labor costs, and helps prevent issues. Businesses now use direct deposits for payroll payments, and online invoices for customer billing
- The bank still provided a check-based service for a small number of clients, catering to the few remaining individuals who preferred this payment method. The bank supported a small amount of check transactions because its core focus had moved to digital offerings. Compared to online banking, the check-based service was more expensive and time-consuming for the customer and the institution.