Checks, Digital Payments, and Fraud: What Bank and Credit Union Executives Need to Know This Holiday Season

Black Friday marks the unofficial start of holiday shopping, and with it comes a surge in payment activity for banks and credit unions. While digital wallets and instant payments grab the headlines, checks remain a steady favorite for millions of consumers, whether for personal purchases, gifting, or splitting expenses. This seasonal spike highlights the wide range of payment preferences and the need for financial institutions to support every option.

Younger shoppers lean toward mobile wallets and contactless payments for speed and convenience, but many households still trust checks for their reliability, especially when mailing gifts or making charitable donations. The mix of traditional and modern payment methods creates unique challenges for banks and credit unions, requiring strong security, operational efficiency, and seamless experiences across all channels. As holiday spending ramps up, the ability to process payments quickly and securely is more than a necessity — it’s a competitive advantage that builds trust and loyalty.

Industry Trends Shaping Holiday Payments

• Checks Persist: Despite digital adoption, checks remain integral to holiday spending. Many consumers still use checks for gifting, donations, and managing shared expenses, particularly among older demographics and regions with slower digital uptake.
• Fraud Risks Rise: The holiday rush brings a spike in payment activity, and with it, increased fraud attempts. Financial institutions report higher rates of counterfeit checks, scams, and account takeover attempts during Black Friday and the holiday season. Legacy systems and fragmented workflows can make real-time fraud detection challenging.
• Modernization is Critical: To keep pace with consumer expectations and combat sophisticated fraud schemes, banks and credit unions are accelerating modernization. The industry is moving toward platforms that streamline payment channels, automate fraud detection, and deliver secure, frictionless experiences.

Unified Solutions for a Fast-Changing Payments Landscape

To address the complexities of today’s payments environment, especially during high-volume periods like Black Friday—banks and credit unions are embracing unified platforms that consolidate all deposit channels. Solutions like Unify enable real-time processing and integrated fraud detection across both traditional and mobile payment methods. Meanwhile, advanced technologies such as Alogent Shield set new standards for security, leveraging AI and machine learning to identify and prevent fraud at the point of capture, even as threats evolve.

Key Takeaway for Executives

As holiday spending accelerates, the need for intelligent, modern payment solutions is more urgent than ever. By adopting platforms like Unify and Alogent Shield, banks and credit unions can deliver secure, efficient experiences that align with industry trends and rising consumer expectations, ensuring resilience, trust, and competitive advantage in a rapidly evolving payments landscape.

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