Is the Check Really in the Mail?
Summary: But I wonder if there isn’t a trust issue with some businesses still, who don’t quite like the idea of all that money changing hands electronically. Ironically, from the studies Doc has read, the likelihood of fraud is much higher with printed checks than with electronic transfers.
Doc keeps track of all his vast financial holdings electronically, but every once in a blue moon I still have to get out my checkbook to write out a good old-fashioned check. That’s why it interested me greatly to read recently that the Obama administration is moving the government toward an all-electronic funds transfer system – no more written checks. This electronic system, already widely in place at many government agencies, will save millions on postage, processing time, and other expenses.
This all got me to thinking about most businesses today. I still see a lot of businesses issuing printed checks (for payroll and other purposes) and have followed a number of sophisticated check-writing software programs.
So my question today is, do you still issue printed checks and if so, why? What are the main obstacles to moving toward all electronic fund transfers?
My suspicion is that most of those who still issue printed checks are doing so primarily to one-off customers or suppliers where it isn’t worth the effort to collect the information necessary to facilitate electronic funds transfers. Usually this only makes sense when you are repeatedly issuing checks to the same party.
But I wonder if there isn’t a trust issue with some businesses still, who don’t quite like the idea of all that money changing hands electronically. Ironically, from the studies Doc has read, the likelihood of fraud is much higher with printed checks than with electronic transfers.
Is there a general distrust of financial institutions that makes some people prefer a printed document over an electronic one? In Europe, electronic fund transfers are much more common, but there are also many fewer financial institutions. In the United States, there are over 8,400 FDIC-insured commercial banks. That’s a lot of routing numbers to keep track of, and Doc assumes people in this country change banks more frequently than in many other countries, due, in part, to tremendous competition between banks.
Please chime in and let me know if your company has made the big switch to electronic fund transfers or if you’re still issuing checks the old fashioned way – off the back end of a printer.
More from “The DocuMentor”
Topics
Biography
Doc
ZDNet introduces Doc (The DocuMentor), sponsored by RICOH. Through his blog, Doc will educate you about Document Management. So who is Doc? Doc is something of an enigma. He was born to a Russian ballerina and a German electrical engineer who some believe was running covert operations for shadowy corporate interests. Doc grew up in various locations in the United States, although no one seems to know precisely where, least of all Doc. His early schooling was unremarkable except for the time he was caught trying to replace all the mimeograph machines with high-tech color copiers that had mysteriously disappeared from a shipment to Albania. At MIT, he made a name for himself by transforming a large printer into a robot that hunts and eats Roombas. Professionally, he reportedly has seen the insides of more brands, versions, and generations of printer and printer-related hardware than almost anyone. Some say his obsession with paper, printing, and mechanical movement was either started by, or evidenced by, a traumatic childhood episode when he crawled inside an old Xerox 2400 and tried to print himself.
Anyway, Doc has hands on experience with stuff like printer maintenance and fleet management, but his mastery of document management leaves no stone unturned. Important issues like sustainability, security, and regulatory compliance are top of mind for Doc, as are other business technology needs like networking and IT services, making him a true blue IT renaissance man.
Just In
The reality is, we, as Americans like to hold money, whether its a paper check or a stack of green backs. There is an inherent value to a stack of dollar bills, in budgeting, saving & controlling spending. This is why so many financial planners or money counselors use an envelope system to teach people to control or manage their money.
Banks?? They have stabbed Americans in the back. They have evicted people from their homes while taking years of past and future tax dollars to save themselves from collapse... and then collapsed anyways. I am also hearing from hardworking people that have scraped through all of this, left and right, about another bank and their feelings for them. I'm not overly negative or positive about the system, but the disdain that comes from people in group conversations is disheartening. I suspect Americans, as a whole, are far from trusting the banking industry again, for a long time. The American people need to be courted back into trusting that banks are working for them, because the past three years, people have been ignored and tossed to the curb (some literally) while their tax dollars have gone the way of leftover steam from an engine. Earning that trust back can be done, but it will take work.
If they people really don't trust the banks, then why did they sit back and do nothing while the Republicunning sabotaged the Congressional attempt to reform the industry?
Worse yet, why did so many from among the people actually support the very same Republicunning representatives in Congress who actually participated in this sabotage?
These examples illustrate that the situation is nowhere near as simple as "the people don't trust banks". In fact, the people don't understand either banking or economics, which has led them to make a long row of bad decisions empowering the modern day robber barons to rob us all in the financial collapse and its aftermath.
It is with good reason that even Warren Buffett calls CDOs "financial weapons of mass destruction".
But again: when a few in Congress tried to contain the damage thse "financial WMDS" do, the Republicunning got in the way and killed it. With support from their constituents and the "tea party movement"!
I'm so glad your friends the Democrats (who are still in control of Congress, aren't they? -- so apparently it wasn't those mean Republicans all by themselves) have gotten this country's economy into such a great shape both now and for the forseeable future. Job done so well, that's why O's economic team is starting to desert the ship, with the other rats.
I'm not a partisan supporter of one political party, like you seem to be. I'd like to kick them ALL out of office and start over with some people more interested in their country's welfare than their own.
Entrance exam for political office: being able to pass Econ 101 and 102! Especially the part about what happens when you spend more than you take in, and try to make up for it by printing more money; also the part about costs of business being passed on to the consumer. Seems like it would be a good refresher course for those in the banking and credit interest, also.
P
The first time I ever received a paycheck was when I came to America in 1993. I was stunned and amazed (but mostly stunned) at this primitive process.
Join the conversation!
Quick Poll
Which imaging and document management trends are you most likely to consider?
Related Links
- New White paper: Managed Print Services and Beyond: How You Can Cut Costs and Go Green While Increasing Employee Productivity
- Learn how document management systems can help reduce the tide of paper that is swamping our offices
- Use software to cut costs by scrapping paper
- My printer, my social letterbox
- Doc on Twitter
- Doc on Facebook
- Doc on LinkedIn
Vendor Showcase
Blog Archive
White Papers, Webcasts, & Resources
- Conquering the Challenges of Data Center ComplexityVirtualization and Cloud are two popular IT trends that lower costs and ... (Hewlett-Packard (HP))Download Now
- A New Day: How Smarter Computing can Grow Capacity on Flat CostsHow smarter computing can grow capacity on flat costs ... (IBM)Download Now
- Remote support for PCs, Macs and SmartphonesWith LogMeIn Rescue, you'll be able to instantly support more users on ... (LogMeIn)Download Now
