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dc.contributor.authorQuinn, Stephenen_US
dc.contributor.authorRoberds, Williamen_US
dc.date.accessioned2012-04-30T12:31:12Z-
dc.date.available2012-04-30T12:31:12Z-
dc.date.issued2008en_US
dc.identifier.citationEconomic Review, Federal Reserve Bank of Atlanta 0732-1813 93 2008 4en_US
dc.identifier.urihttp://hdl.handle.net/10419/57670-
dc.description.abstractThough checks' popularity is now waning in favor of electronic payments, checks were, for much of the twentieth century, the most widely used noncash payment method in the United States. How did such a relatively inefficient form of payment become so dominant? This article traces the historical evolution of the check, focusing on its relation to complementary and competing payment technologies. Originating in the eastern Mediterranean during the first millennium as a convenient form of payment between local merchants, checks became more versatile through the development of negotiability in sixteenth-century Europe. The suppression of banknotes in eighteenth-century England further promoted the use of checks. In the United States, nineteenth-century legislation discouraged other payment methods and eventually led to a nationwide check payment system. In the twentieth century, under the Federal Reserve's leadership, checks expanded rapidly and became the nation's default payment method. The authors discuss some persistent historical themes surrounding checks: checks' ease of use, which provides advantages over other payment methods but creates risk to businesses and banks; checks' sophistication, which evolved through centuries of legal precedent and operational experimentation; and checks' high costs relative to other forms of payment. Checks' traditional dominance of the U.S. payment system, the authors conclude, resulted from historical happenstances. These events gave the check relative advantages that are only now being overcome by electronic payment technologies.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of Atlanta Atlanta, GAen_US
dc.subject.jelE42en_US
dc.subject.jelG21en_US
dc.subject.jelN10en_US
dc.subject.ddc330en_US
dc.subject.keywordchecksen_US
dc.subject.keywordpaymentsen_US
dc.subject.keywordFederal Reserveen_US
dc.subject.keywordbanknotesen_US
dc.subject.keywordbills of exchangeen_US
dc.subject.stwSchecken_US
dc.subject.stwGeldgeschichteen_US
dc.subject.stwZahlungsverkehren_US
dc.subject.stwUSAen_US
dc.subject.stwWelten_US
dc.titleThe evolution of the check as a means of payment: A historical surveyen_US
dc.typeArticleen_US
dc.identifier.ppn602139635en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Economic Review (Vol. 93-95), Federal Reserve Bank of Atlanta

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