Paper checks are being transitioned to electronic images
of checks at a pace that is unprecedented. Check images are currently collected
in two forms, as substitute checks and as check images.
Substitute checks assist in evolving traditional paper check
clearing to image-based clearing. As a precursor to full check image exchange,
the number of substitute checks is a positive indication of the acceptance of
image exchange.
Almost 14 billion annual check payments totaling more than
$17 trillion per year have already moved from the traditional paper-based clearing
process to improved image-based processes.
On an average day during December 2007, more than 8,600
institutions received almost 40 million check images for posting. These total
10 billion checks per year.
This CheckImage Collaborative image clearing report reflects
transactions settled through the Federal Reserve, PaymentsNation (formerly NCHA),
SVPCO and local / regional exchanges. When the same payments were cleared through
two or more of these organizations, those payments were counted only once.
The 2007 Federal Reserve’s Payments Study shows that the volume
of checks (both written and paid) continue to be larger than debit card, credit card
or ACH transactions. The report also shows that the dollar amount of checks increased
from 2003 to 2006 from $40 to $41.7 trillion.
Data Sources for all Statistics:
Transaction settled through the Federal Reserve, NCHA and SVPCO with no duplicate counting.
