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Once upon a time, in the not so distant past grocery stores accepted and processed personal checks and cashed payroll checks in a an effort to provide service and cash to their customers. That’s changing. Whole Foods is considering banning the use of personal checks in all stores. Two Los Angeles locations have already stopped accepting checks as well an Arizona location.

The image of the local grocery store as a place for check processing and, cashing payroll and personal checks is fading. In this age of direct deposit and debit cards it seems outdated, even irrelevant. These days check processing is seen as a time consuming and expensive service. The rise in check fraud may also be a contributing factor. The check approval process in most grocery stores and other retail stores for that matter, is getting longer as a result. It makes it more inconvenient for those waiting in line as well.

Making such a move does carry risks. Each time a company takes away a service they risk alienating and losing customers. It does seem that a wide spread move by the grocery industry to ban personal checks wouldn’t upset most of their other customers. For the store, debit cards are more convenient; it comes right out of the customer’s account. It saves the customer time and effort of writing a check. Still there are some customers who feel the act of physically writing the check makes it more real and thereby an easier way to keep costs down and to keep track.

Whole Foods remains convinced it would improve service. They say most customers already pay with cash or debit card . The pilot program is intended to see if personal check users will switch to debit or other forms of payment. The biggest advantage for grocery stores is a savings in labor and processing.

While it may make sense for the retailer as a way to keep costs down, and even for those in line behind them, one has to wonder what kind of effect it will have on the older consumer who prefers paper records. What about the consumer who thinks of their local grocer as a trusted friend? Will they feel alienated if, after years they no longer have the privilege of cashing payroll checks with them or writing personal checks to purchase items from the store? With businesses closing right and left wouldn’t grocery stores want to keep customers, even offering them extras to stay, instead of taking away services? Only time will tell. If the pilot program does well look for others in the industry to follow suit soon.



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