Electronics held in check

Article Abstract:

Predictions that electronic payment would eventually lead to the demise of the paper check have yet to come true. In fact, check volume is growing continuously all over the world. Although the market share of electronic funds transfer systems is increasing, checks remain the most preferred form of payment. The paper check is defying predictions and outperforming electronic payment largely because of the falling cost of processing and the failure of electronic systems to deliver promised efficiency gains. Its popularity is likely to persist in view of the consolidation among check shops and further improvements in the efficiency and cost of processing. Bankers should therefore focus on marketing their paper check products and on reducing the costs of electronic payments.

Evaluation, Checks, Bank marketing

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Opting for electronics?

Article Abstract:

The Treasury Dept has been contemplating anxiously on adapting electronic benefits transfer systems in its attempt to reduce cost and quicken the process of benefits payments transactions. There has been an increase in the proportion of non-tax payments it processed electronically between 1995 and 1999. However, the willingness of bankers to cooperate in the program remains to be unclear because bankers have been skeptical about the profitability of the system. Moreover, the banking industry refused the mandatory bank participation called for by the agency with the belief that the campaign is politically motivated. This issue manifests the conflicting priorities of privately-capitalized banks and the government.

Employee Benefits & Services, Human resource management, Information management, Employee benefits, United States. Department of the Treasury, Transfer payments

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Piecing the payments puzzle

Article Abstract:

Nonbank technology firms are developing electronic payment systems designed to eliminate some banking functions by acting as intermediaries between banks and clients and by handling the information created by bank transactions. Moreover, new technologies may further erode the role of banks in cash management and disbursement programs. Banking institutions have responded to these issues in two ways: by forming alliances or merging with nonbank technology companies or software developers and by creating a huge database that contains information on merchants that accept noncash payments. However, other electronic data interchange service providers are creating new threats to existing payment systems.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Innovations, Economic aspects, Services, Banks (Finance), Electronic commerce, E-commerce

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