The check?s in the mail.
In a fast-paced world of e-mail and paperless transactions, that saying might seem more out of date than ever.
The Federal Reserve System announced Tuesday that it would continue its shift from paper checks to electronic payments. As a result of this long-range economic vision, the Reserve selected Philadelphia, Cleveland, Atlanta and Dallas as regional check processing sites through 2011. This move will cause some smaller offices to consolidate and close. Since 2003, more than 20 sites have shut down.
“There?s no doubt that paper checks are becoming far more obsolete, especially with bill paying,” said Drew Tignanelli, president of The Financial Consulate in Lutherville.
About 37 billion checks were paid in 2003, down from 42 billion in 2001 and 50 billion in 1995. Electronic payments, meanwhile, along with credit cards, debit cards and automated payments, increased, the Reserve reported.
The reason many small shops or stores still accept checks in place of credit cards is that the cards often involve a transaction fee, and checks do not. However, a bank will charge $20 to $30 for a bounced check. Because of this, many companies ask for a telephone number or driver?s license number if contact information isn?t printed on the check. About 450 million “bad” or “bounced” checks are written each year, Cheapchecksinc.com?s consumers guide said.
Sometimes, checks can even go digital. This type of e-commerce transaction often makes consumers feel more secure than a digital credit card transaction, because the same level of sensitive information will not be transmitted over the Internet.
“You still have a lot paper checks being written, but clearly the amount of money on credit cards, electronic fund transfers and e-bill paying is increasing,” Tignanelli said. “If you could pay with credit cardsand get bonuses [such as sky miles?, why wouldn?t you?”
Many paper checks often have security features of their own. These can include foil or embossing, small or micro-printing and complex designs to prevent the counterfeiting of checks, Cheapchecksinc.com said.
