Number: RS22525
Title: Electronic Banking: The Post-Check 21 Payments System
Authors: Walter W. Eubanks, Government and Finance Division 
Abstract: This report is a brief assessment of the role of Check 21 in a payments system that is increasingly dominated by electronic payments. This assessment indicates that if banks continue to adopt Check 21, the payments system will capture significant cost savings and efficiencies in the near future, despite the declining use of paper checks. Paper checks remain the most popular single noncash payment method, and the largest noncash payment type in terms of value. Most large payments are still being made with paper checks. Some banks may never adopt Check 21, preferring to forgo its implementation in favor of waiting for fully electronic processes that may be more rapidly approaching than earlier expected.
Pages: 6
Date: November 1, 2006