140% rise in bad checks in wake of COVID-19, BoI data reveals
Many business owners and professionals are now reluctant to accept checks
By JERUSALEM POST STAFFA man enters the main branch of Bank Hapoalim, Israel's biggest bank, in Tel Aviv, Israel July 18, 2016.(photo credit: AMIR COHEN/REUTERS)
There has been a 140% increase in the rate of bad checks being passed during the coronavirus crisis period, with 6% of all checks not clearing due to insufficient funds, according to statistics released by the Bank of Israel.The Bank of Israel considers the phenomenon of bad checks as undermining trust in business relations, and not repaying checks may also have implications for the customer’s financial conduct in the future.As a result of the phenomenon, many business owners and professionals are reluctant to accept checks, asking instead for payment in cash.One offshoot of the trend is the increase in renting safes for depositing cash.“In recent weeks, there has been a 25% increase in renting safes for depositing cash – for purchases and purchase transactions,” said Dvir Indig, CEO of the Brickstone safes.
