Checkless Society

Checkless Society

As the growth of economy and technological innovation take effect in humanity, the era of the “checkless society” has arrived as foreseen by financial technology experts four decades ago. On the account of Dale Resisted, “a day is coming when the American society will be a ‘checkless society’ although it would take some time”. Actually, the legislation on ‘Check 21’ in the year 2004 enabled the paperless banking exercise setting a foundation to the new age of fund transfer.

As a matter of fact, we are living in the age where electronic handling of checks is making life easier for business and banks. As a result of the use of electronic controls, the paperless transactions has increased the efficiency of money transfers and empowered the existing business and bank relationship. Actually this “paperless “transaction has further allowed the American population to have a flexibility and security in depositing their money without making trips the banking institutions thus more convenient.

As the current financial crisis takes effect, more than 70 million senior citizens do not possess a credit card and debit card. Meanwhile, most people use electronic checks as main payment for that segment of the population. In fact, most American families have at least one electronic check account mainly for loan application. In addition to that electronic checks have become a necessity especially when payment must have a guarantee such as real estate closings, individual transactions, as well as a small business. As a consequence, the society has adopted electronic payments and eliminated the use of the use of checks, money orders, and even cash.

Above all, the financial institutions in the United States of America have transformed rapidly so as to stay competitive in the dynamic technology and global integration by using modern financial and technological innovations.  As a result, all the payment processing are efficiently being streamlined by financial institutions to be competitive, reduce time wastage, offer efficient services to customers as wells remain profitable. As such it is quite obvious that the general public is now a ‘checkless society’.