A brief history of checks
Checks are a very old tried and true method of payment. As check writing and cashing is evolving so too is the technology that surrounds them. The story goes it all began with the Romans in 352 B.C. but it got interesting around 1681 when an American cash-strapped businessmen in Boston mortgaged their land to fund their debt with notes.
By 1762 a British banker named Lawearce Childs is credited with inventing a method of placing serial numbers on notes as a method of “checking” on them.
As the usage of checks grew there needed to be a more efficient method for checks to clear other than by hand-delivered messenger. While at a brief stop for coffee two messengers met up by happenchance and exchanged the checks written for the other’s bank. This lead to a brilliant leap forward to the idea of a clearinghouse that alleviated the necessity of hand-carried checks. The network of exchanging checks between banks is still in use today. The U.S. banks today present checks to the Federal Reserve System or private clearinghouses.
The Future of Checks
ACH funds are difficult to manage. Businesses rely on check writing as a method to reconcile the accounts payable process. The appeal of checks to businesses is obvious; they are familiar with the process, it’s easy to track the status of a check and manage cash balances. The dependency on check-writing along with technology innovation has created a metamorphosis opportunity to improve the check-writing process.
The AP components are challenging. Businesses need a solution for approving and creating checks easily. No matter if it is a high volume or not, all businesses need to pay vendors for goods. There are many industries that require checks such as law firms, construction, non-profits, brokers, and traditional businesses.
During this upcoming webinar on November 17, we will explore the possibilities of the check-writing industry.
Which will include:
- The history of checks
- Industry possibility
- AP Workflow
- Check solution