Hats Off to the Check Guys
The Fed announced this morning that 99% of checks are now clearing electronically between banks. During a period of unremitting bank-bashing, let’s take a moment to applaud a real home run by the bankers. The radical transformation of the check infrastructure, accomplished over the last six years, is due to some very smart law-making (the Check21 law is a miracle of simplicity – a small tweak in law which resulted in an enormous multi-party transformation) and effective collaboration by banks and processors. Congratulations!
Now that checking is another electronic payment system, there are all kinds of things we can do with it – we don’t have to shoot it! As I’ve written about before, I’m cautiously enthusiastic about electronic payment orders – and there may be more innovation to come.