Fed says two-thirds of all US noncash payments are now made electronically |
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Mon, 10 Dec 2007 17:01
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WASHINGTON (Thomson Financial) - More than two-thirds of all US noncash payments were made electronically in 2006, improving the efficiency of banks' check clearing systems, the Federal Reserve reported today.The Fed's 2007 study also found that between 2003 and 2006, all types of electronic payments increased, while check payments decreased.A 2004 study conducted by the Fed found that in 2003 the number of electronic payments and check payments were just about equal.The number of electronic payments made in 2006 totaled 62.7 bln, after increasing at an annual rate of 12.4 pct in the three years prior.The number of check payments made in 2006 fell to 30.6 bln, after decreasing annually by 6.4 pct between 2003 and 2006.Nearly three billion additional consumer checks were converted to electronic payments in 2006.Richard Oliver, executive vice president of the Federal Reserve Bank of Atlanta and the Federal Reserve Banks' product manager for retail payments, said, 'The results of our study underscore the ongoing importance of check electronification and other innovations that improve the efficiency of the US payments system.'However, 'With around 33 billion checks written in 2006, we expect checks to be around for some time,' he said.The study also found that consumers are using debit cards more frequently than credit cards and automatic clearing house (ACH) payments when making electronic payments.tessa.moran@thomson.comtlm/wash/rwCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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