Essay - Banking Introduction Over the Past Decade There Has Been a...

Banking

Introduction

Over the past decade *****re has been a signific*****nt increase in the automation of banking systems around ***** world. One of the impacts of automation is paperless transactions; this means that an increased number ***** consumers are choosing to make electronic payments rather than paying with a traditional check. The purpose of this discussion is to argue whether electronic payments are the best method ***** payment over ***** traditional check.

Electronic Payments vs. Traditional Checks

In working for a check printing company called Custom Direct for last eight years, I have been witness to a steady decline in order volume. This decline is due in part to the popularity of credit cards and electronic transfers. While there are some ***** who remain loyal to *****s ***** security reasons and the comfort ***** seeing things in print, there are others who enjoy the convenience of electronic payment. However, electronic ***** ***** going ***** continue to narrow the gap which could be an advantageous situation.

**********, our society is ********** a place in ***** electronic payments are quickly replacing traditional checks and even cash. According ***** a book entitled Cyber*****: The Coming Era ***** Electronic Money ***** banking industry is being transformed by electronic transactions. Guttman (2002) explains

Having gradually replaced central bank notes and bank checks ***** plastic *****, ***** fund transfers and automated clearing-houses, the world ***** now readying itself for the next step in ***** automation of money. Electronic commerce conducted on the internet is bound to spur a variety ***** online-payment mechan*****ms, ***** such cyber cash may very well multiply ***** uses of the internet as marketplace, in production, and for f*****ancial transactions. We are at the threshold of a new industrial revolution, fuelled by the prolifer*****ion of digital-money forms (*****, 2002)."

An article entitled "***** Don't Need No Stinkin Checks" asserts that ***** ability ***** *****s ***** conduct transactions electronically ***** grown substantially over the past *****. The ***** asserts that this growth has been initiated ***** continued because of ***** demands of consumers. This demand became particularly apparent after the terrorist attacks ***** September, 11th and ***** anthrax attacks ***** followed ("We Don't Need No ***** Checks," 2002). The article points out that it was during this time period that consumers began to increase online purchases and the ***** of bills *****y paid online.

Indeed, there are many reasons way electronic transactions have become so popular in the last few years. One such reason is ***** issue ***** convenience as ***** relates to everyday purchases. According to an article found in the ABA Banking Journal, in 2004 a study conducted by the American ***** Association revealed ***** electronic payments surpassed cash and checks as the favored payment ***** of consumers for in-store purch*****es (***** ***** Trump Paper, 2004). The article ***** that the study found ***** cash ***** checks compose 47% of in-store purchases, in 1999 this same figure was 57% and 51% in 2001(Electronic Payments Trump Paper, *****).

***** article further asserts that