Banks Finding New Profits From Old-Fashioned Checks

Over 90 million times a day -- around 33 billion times per year -- American consumers and businesses do something old-fashioned. They write a check. That's about 102 checks per year for every man, woman and child in the United States, according to figures published by the Federal Reserve Bank. Surprisingly, that's just ten fewer checks per year than the 112 checks per capita Americans wrote in 1971. Large corporations also remain big check users. According to the Association for Financial Professionals, the typical organization makes 74 percent of business-to-business payments by check.

Minneapolis, MN (PRWEB) December 28, 2008 -- Over 90 million times a day -- around 33 billion times per year -- American consumers and businesses do something old-fashioned. They write a check.

That's about 102 checks per year for every man, woman and child in the United States, according to figures published by the Federal Reserve Bank. Surprisingly, that's just ten fewer checks per year than the 112 checks per capita Americans wrote in 1971.

Large corporations also remain big check users. According to the Association for Financial Professionals, the typical organization makes 74 percent of business-to-business payments by check.

So what happened to the paperless system?

In October 2003, Congress passed Check 21 (Check Clearing for the 21st Century), allowing banks to present a legally equivalent "substitute check" rather than routing the original paper check. Since Check 21 went into effect in October 2004, banks and savings and loans institutions have invested heavily in technology to convert paper to pixels.

It is true that the "paper" check was conceived in a different age and time and alternatives require new processes for its handling and transportation. However, data from the Fed's recent Non-Cash Retail Payments Survey make it clear that the volume of check payments continues to be the largest in the industry and that the value of the check as a payment instrument is growing, not declining. That data makes a powerful case for prudent improvements that replace the outdated parts of the check system while retaining and capitalizing on its advantages. Image processing provides a viable and well adopted solution allowing the check to continue to serve the needs of companies and consumers.

By October 2008, more than 75% of all financial institutions collected more than 70% of all transit checks using image exchange, and that number continues to grow at a rapid rate. David Walker, President of ECCHO reported, "that predictions are that more than 90% of all transit checks will be collected via image exchange by year end 2009". Paperless payment processing at financial institutions is rapidly becoming the norm.

What hasn't changed is how those checks originate, from consumers and businesses, -- as paper. After investing in systems to process checks in new ways, today financial institutions are seeking ways to turn the old-fashioned paper check into new profits.

Premier Check Printing offers a method for new profits and a competitive advantage for you.

Premier Check Printing, Inc., based in Minneapolis, provides economical check printing systems to financial institutions. The Premier Check Printing in-house CheckMaestro system is a start-to-finish combination of powerful software and proprietary hardware that allows banks to print consumer checkbooks, business checks and a variety of financial forms in minutes, pocketing the huge profits that traditionally have gone to giant contract check printing companies.

While the opportunity of a rapid return on investment and ongoing profits is what first attracts most financial institutions to the Premier Check Printing in-house solution, Premier Check Printing customers soon discover that their in-house check printing solution provides a significant competitive advantage.

Charlie Traeger, President of Premier Check Printing says, "Our customers are typically delivering business and personal checks to their clients in 24 to 48 hours, rather than the 2 weeks or more that their mail order vendor was taking to deliver checks. That's a huge customer service benefit for banking clients who typically wait until the last minute to reorder checks." Because creating business and personal checks with the in-house Premier Check Printing system is so economical, some client institutions are providing free checks to seniors or high-value customers.

Premier Check Printing provides free cost/benefit analysis.

Premier Check Printing offers a free cost-benefit analysis for financial institutions, along with an introductory video on the in-house CheckMaestro system. For a complimentary consultation, contact Premier Check Printing at 800-941-9770 or visit the company's website at www.premiercheck.com.

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