Just in case you didn't get enough check information from the August issue of GSQ, The 1998 United States Check Study, then how about some further proof that checks are growing? How about proof from the source of check growth, the Financial Stationers Association?
"Consumers continue to show confidence in checks as their primary source of payment, evidenced by the steady growth of total checks ordered over the past three years," according to the U.S. check shipment survey recently conducted by the Financial Stationers Association.
The emergence of electronic banking and debit card systems has not deterred check writers. In fact, the total number of checks ordered for personal, commercial, credit card convenience checks, and new accounts has steadily climbed since 1995. Total checks ordered rose to 41.1 billion in 1997, up 1.6 percent from 40.5 billion in 1996, and up 6 percent from 38.6 billion in 1995.
"People don't tend to jump right into things that are new, and no matter what other forms of payment are available, consumers continue to feel more comfortable writing checks to pay their bills," said FSA President Earl Rogers, who is senior vice president at John H. Harland Company in Decatur, Georgia. "Writing a check still provides the easiest, least expensive, and safest form of payment, and continues to offer you the best method for keeping record of your bills."
The survey of 14 FSA members and 25 non-member organizations reveals that 86.9 percent of all checks ordered are for personal use, showing that checks are still the primary source for paying home bills such as mortgages, utilities, groceries, and credit card bills.
In the survey, commercial checks make up 12.2 percent of the items ordered, checks to open new accounts make up 0.06 percent, and credit card convenience checks (where a credit card company issues checks that can be written against the consumer's credit limit) comprise 0.04 percent.
The area of check ordering showing the most promising growth is direct mail orders. Consumers are obviously becoming more comfortable using direct mail to order their checks, compared to ordering the traditional way from a bank. In 1997, direct mail accounted for 7.7 billion mail-ordered checks, an 8 percent increase over 1996, and a 33.6 percent increase since 1995.
"Ordering checks through direct mail is growing rapidly because consumers are learning that shopping at the bank for checks is akin to shopping at just one tiny clothing store for your entire wardrobe," said John C. Browning, president of The Check Gallery, a direct mail check company in Joppa, Md., that sells customized, low-cost checks.
"The selection of checks through direct mail is much larger than the bank, the convenience is great, and the cost significantly lower. The quality of the check is the same as a bank, and in some cases, the direct mailer is using the same printer as the bank," Browning said.
Another area of growth is laser sheet checks and continuous form checks within the commercial industry. Advanced bookkeeping software is allowing more companies to handle their own payroll, thus laser check items ordered climbed 21.4 percent to 1.4 billion from 1996, more than doubling the orders from 1995. Continuous form checks made a comeback in 1997, rising 11.6 percent after dropping 2.7 percent in 1996.
All told, the check continues to be strong and efficient, if not resilient, in this age of electronic funds transfer systems. "Over the past 25 years," Rogers said, "so-called experts have said the check would be killed by the direct deposit of payroll, that ATMs would eliminate the need to write checks for cash, that credit cards and debit cards would eliminate writing checks at the point-of-sale, and that home banking would put an end to writing checks for bills at home. People are still more comfortable using a check for paying their bills. What has changed is the variety of ways people are using checks. And that wouldn't be happening unless the consumer's confidence in the check as a safe, easy, and convenient manner of payment was rock solid."
FSA is the trade association representing the leading check and related financial printers and their suppliers. Also included in FSA membership are corporations and organizations interested in enhancing the public's understanding and continued use of checks as the mainstay of the payments system.
If you would like more check information, and did not receive a copy of the 1998 United States Check Study, please let us know by calling (800) 757-4441 or send an e-mail to greensheet@greensheet.com.
