As published in the Business Insider, March 13, 2013, the death of paper checks began on September 11, 2001 or what has become known as 9/11.
Up to this time, money moved around the US in what now seems a laughably inefficient manner. Banks trucked paper checks to central processing centers, which sorted them and then bundled them onto airplanes. On a normal day, about $6 billion was literally up in the air as checks flew to their destination. That amount grew to $47 billion after the FAA grounded planes in the wake of the 9/11 terrorist attacks.
That prompted passage of the Check 21 Act, which allowed banks to use electronic images of checks instead of paper with this being a huge success ever since. Almost no payments are settled between banks using paper checks anymore.
A study, published by the Federal Reserve Bank of Philadelphia in 2012, “Getting Rid of Paper – Savings from Check21”, estimated that moving to electronic checks is saving the banking system $1.2 billion a year, with consumers and businesses getting $2 billion in benefits from faster payment processing.
The number of paper checks is dropping about 1.8 billion a year and, according to the Philadelphia Fed study, paper checks will take until 2026 to go away entirely.
eChecks are the product of today. They are safe, secure and easy to use for both the consumer, bank and the business accepting them.
"The number of paper checks is dropping about 1.8 billion a year..."