Check 21 – Check based payments in transition in the U.S.

Technological advances have facilitated the rapid electronic delivery of data and as such provide an important tool for process re-engineering and competitive advantage. Some of these advantages of these technologies manifest themselves through advanced electronic imaging, processing and communications technologies. This paper examines a recent legislative change to the United States (U.S.) paper cheque clearing system. Cheques, as negotiable instruments, were established in the 17th century in the United Kingdom. Their popularity steadily increased in the past three centuries as they provided secure disbursement of high value sums over (long) distances. With the advent of electronic payment systems and credit/debit cards, the popularity of cheques has peaked. Nevertheless, with over 40 billion cheques written every year, it remains a crucial payment solution in the U.S. economy.

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Mark Gazaleh (2006)