America's Love Affair With Checks Remains

As head of Charles Schwab’s municipal bond trading division, Warren Gordon can punch a few computer keys and buy $1 million in bonds within minutes.

But when he needs to pay a $75 green fee at his golf club, there’s only one option — his checkbook.

As banks try to cut costs and spur efficiencies, they are faced with just this dichotomy: The same U.S. financial system that lets investors move millions of dollars around the world in minutes is still heavily reliant on small pieces of signature-inscribed paper that got popular in the 1500s.

And despite a much-touted federal law for the digital age, Americans are expected to keep their checkbooks handy for years to come.

“It’s low tech. That’s its beauty and its pain,” said John Lettko, chief executive of Viewpointe, a check-image archiving firm. “It’s become a nightmare to get all these checks to different places.”

Last year, an estimated 36 billion to 40 billion checks passed through the payment system. Every day, an average of 192 flights took off to transport them. Each check passed through eight hands before returning to the person who wrote it.

For this complete story, please visit America’s Love Affair With Checks Remains.