A Comparative Study of the Traditional and Electronic Check Processing System

With the fast paced advancement of technology, credit cards have become an integral part of our daily life. Most of the payments are preferred to be done by the usage of credit cards. In the absence of credit card systems, people used the check system for any transaction of huge amounts. Today, in spite of the extensive usage of credit cards, there are people who utilize the check facilities as they think it is a safer means of monetary transactions. Now with the advancement of technology, electronic check processing has emerged.

Preference of check system

The use of check system is in high demand that may be due to one of the following reasons:

  • Checks are mainly preferred while making expensive purchases.
  • Checks allow the customers to make the purchases based on the amount limit they have in banks and the amount that can be spend on the article at the maximum limit.
  • A considerable part of the population has been seeing the check system to be in use since their very childhood. Here comes in the issue of familiarity and habit of using the check. Credit card being a newer option is not preferred by many of the senior citizens.

Drawbacks of the traditional check system

There are certain drawbacks of the traditional check system which had been overcome by the electronic check system:

  • Lack of proper facilities to know whether there is sufficient fund to back the check.
  • Difficulty of proving the irresponsibility of the customers who pay bad checks
  • The delay that may often occur in receiving the check and the amount to get processed in the account.

Benefits of electronic check system

The benefits that were given by the electronic and other system as an alternative to these problems would include:

  • The ability of converting the paper checks immediately into the electronic transaction mode so that the payment processing is done faster.
  • The need for keeping physical deposits in the bank and reconciliation of manual funds are eliminated.
  • Any lost or stolen checks can be immediately recognized.
  • The payments are ensured to be legitimate and the amount is transferred to the respective account within a short time.

Availing electronic check option

Most of the business owners keep credit card and debit card or cash as payment options. In addition to these, traditional checks and electronic checks are also kept as an alternative in case the customer is not very thorough with the credit card system. More options help in further embracing of the business. This is just because you will have more number of customers coming in due to the variety of payment options and they can make purchases on their suitability.

With all these benefits in hand, in the war between the traditional, high risk check processing and this safe electronic check processing, electronic method emerged victorious.



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