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Why do we use so many checks?

Author

Listed:
  • Sujit Chakravorti
  • Timothy McHugh

Abstract

The authors identify underlying disincentives for payment system participants to migrate to electronic payments. Their analysis sheds light on why check usage remains higher in the United States relative to other industrialized countries when the real resource cost of processing payments may decrease by using electronic payment networks.

Suggested Citation

  • Sujit Chakravorti & Timothy McHugh, 2002. "Why do we use so many checks?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 26(Q III), pages 44-59.
    • Handle: RePEc:fip:fedhep:y:2002:i:qiii:p:44-59:n:v.26no.3
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    References listed on IDEAS

    as
    1. Brian Mantel, 2000. "Why don't consumers use electronic banking products? towards a theory of obstacles, incentives, and opportunities," Occasional Paper; Emerging Payments EPS-2000-1, Federal Reserve Bank of Chicago.
    2. Sujit Chakravorti & Ted To, 1999. "Toward a theory of merchant credit card acceptance," Working Paper Series WP-99-16, Federal Reserve Bank of Chicago.
    3. David Humphrey & Lawrence Pulley & Jukka Vesala, 2000. "The Check's in the Mail: Why the United States Lags in the Adoption of Cost-Saving Electronic Payments," Journal of Financial Services Research, Springer;Western Finance Association, vol. 17(1), pages 17-39, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Chakravorti Sujit, 2003. "Theory of Credit Card Networks: A Survey of the Literature," Review of Network Economics, De Gruyter, vol. 2(2), pages 1-19, June.
    2. Gene Amromin & Sujit Chakravorti, 2009. "Whither Loose Change? The Diminishing Demand for Small‐Denomination Currency," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(2‐3), pages 315-335, March.
    3. Sujit Chakravorti & Emery Kobor, 2003. "Why invest in payment innovations?," Emerging Issues, Federal Reserve Bank of Chicago, issue Jun.
    4. Bouwman, Harry & de Reuver, Mark & Cavallini, Andrea & Lourens, Jeremy & Manocha, Swati & Vaessen, Maud & Dahlberg, T., 2015. "Mobile payment: a multi-perspective, multi-method research project," 26th European Regional ITS Conference, Madrid 2015 127128, International Telecommunications Society (ITS).
    5. Chakravorti Sujit & Roson Roberto, 2006. "Platform Competition in Two-Sided Markets: The Case of Payment Networks," Review of Network Economics, De Gruyter, vol. 5(1), pages 1-25, March.
    6. repec:zbw:bofrdp:2003_008 is not listed on IDEAS
    7. Tumen, Semih, 2012. "Regulation and the market for checks," Economic Modelling, Elsevier, vol. 29(3), pages 858-867.
    8. Gene Amromin & Sujit Chakravorti, 2007. "Debit card and cash usage: a cross-country analysis," Working Paper Series WP-07-04, Federal Reserve Bank of Chicago.
    9. Jyrkönen, Hanna & Paunonen, Heli, 2003. "Card, Internet and mobile payments in Finland," Research Discussion Papers 8/2003, Bank of Finland.
    10. Cronin, David & McGuinness, Anne, 2010. "Retail Payment Practices. How They Have Evolved in Recent Times and Where They Might Be Going," Quarterly Bulletin Articles, Central Bank of Ireland, pages 56-82, April.
    11. Jyrkönen, Hanna & Paunonen, Heli, 2003. "Card, Internet and mobile payments in Finland," Bank of Finland Research Discussion Papers 8/2003, Bank of Finland.
    12. Hanna Jyrkonen & Heli Paunonen, 2004. "Card, Internet and mobile payments in Finland," Development and Comp Systems 0405004, University Library of Munich, Germany.

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    Keywords

    Checks; Payment systems;

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