Why Checks Are Still Useful

A History
Since the 12
th
century when the bill of exchange was introduced in Florence, Italy, checks have
been a secure and convenient method of payment for merchants and traders. In the early 19
th

century, the Commercial Bank of Scotland was the first institution to personalize checks with
customer names and by the mid-19
th
century the Bank of England introduced the first modern
checkbook.
1

Modern Times
In the 20
th
century, checks became one of the most widely used forms of payment in the United
States. Its estimated that in 2001, 70 billion checks were written in the United States alone.
2

However, with the advent of technology, and the rise of debit and credit card usage, that number
has declined in the last decade. Still, with 10% of all US payments still done by checks, its clear
that the paper bill is an important part of all monetary transactions.
3

Credit Cards Not Accepted Everywhere
Today, studies show that 55% of the 27 million small businesses in the US do not accept credit
cards despite its popularity.
4
With the number one reason being processing fees, many merchants
are hesitant to deal with the expense of accepting credit cards, but are more than willing to accept
checks as there is no convenience charge involved.
Convenience of Use
Its estimated that 20% of American household do not have internet access.
5
Meaning for over 63
million Americans, paying bills or purchasing items online simply isnt as convenient or as safe
to do when compared with writing and mailing a check.

1
. Cheque and Credit Clearing Company. Cheques & Cheque Clearing: The Facts. London: Cheque and Credit
Clearing Company, 2012. http://www.chequeandcredit.co.uk/files/candc/press/cheques_the_facts_2012.pdf
2
Organisation for Economic Co-operation and Development, ed. The Future of Money. Paris: OECD, 2002.
http://www.oecd.org/futures/35391062.pdf
3
Pianalto, Sandra. Collaborating to Improve the US Payments System. Federal Reserve Bank of Cleveland. 22
Oct. 2012. http://www.clevelandfed.org/for_the_public/news_and_media/speeches/2012/pianalto_20121022.cfm
4
GoPayment Survey Estimate $100 Billion in Missed Sales for Small Businesses that Deny Plastic. Intuit. 22
May 2012. http://about.intuit.com/about_intuit/press_room/press_release/articles/2012/GetBusinessGrowing.html
5
Table 1155. Household Internet Usage In and Outside of the Home by Selected Characteristics: 2010. US
Census Bureau. 2012. https://www.census.gov/compendia/statab/2012/tables/12s1155.pdf
5

5

5
Company Bio: Since 1922, CheckWorks, Inc. has been at the forefront of check technology and
innovation. The first direct to consumer check printing company, CheckWorks pioneered the
Avoiding Fraud
Credit card theft is a very real and rampant issue for some internet stores and everyday
transactions. From skimmers being attached to ATMs, to cyber-attacks on websites, a credit
cards security can be easily breached due to the prevalence of its usage.
On the other hand, a signature and designated payee is required on every check, making fraud
more difficult when compared to credit and debit cards. Banks will often look for forged or
inconsistent signatures when they process a check and identification is often required to pay with
a check in-store. If discrepancies or forgery is suspected, account holders can easily petition their
case to their bank.

Regulated Spending
Essentially loans, credit cards are often the root of unregulated spending for millions of
Americans. Consumers who cant pay their monthly balance in full are forced to pay interest. If
payments are late or are missed, they run of the risk of having their account sent to a collections
agency or go into serious debt.
Meanwhile, checks are directly tied to a persons bank account. This limits consumers to only
use what they have when they purchase an item and keep a physical receipt of all their purchases.
In conclusion, using checks can be beneficial for anyone seeking a reliable and secure form of
payment. For more information on checks and their usage, please visit CheckWorks, Inc. at
www.checkworks.com.

wave of fashionable and personalized checks for everyday use. For more information on their
products and services, please visit them at www.checkworks.com.