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Checkless Society

Dale Reistad invented the phrase “checkless society” in the second half of the 20th

Century to describe a society in which all financial transactions are conducted electronically. The

advancement in computer and internet technology in the second half of the 20th Century and the

21st Century has facilitated the development of the checkless society. The development of the

checkless society has been characterized by replacement of conventional banking methods such

as the use of cash, checks and money orders by electronic banking strategies including the use of

debit cards, Automated Teller Machine (ATM) cards, electronic money transfer and credit cards.

The ultimate goal of major lending institutions and banks in the United States since the

1960s has been to adopt checkless systems. Notably, the checkless systems are more effective

and convenient than the conventional banking methods. Due to the emergence of online banking

in the 21st Century, United States citizens can conduct financial transactions at the safety and

comfort of their homes and offices hence eliminating frequent trips to the bank. “Paperless”

transactions have also created security and flexibility for the merchants through elimination

liquid cash handling. The flexibility of the “paperless” transactions in the cashless society has

enabled merchants to withdraw and deposit funds at their convenience (FedPayUSA).

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The development of the checkless society, however, has been hindered by the ultra-

conservative nature of some United States’ citizens regarding money handling. The ultra-

conservative group of merchants in the United States has become skeptical of the online banking

due to the rising cases of malware attacks and computer hacking. People have made huge losses

through hacking of their bank accounts where malware attack and hacking is still a challenge for

banks and other lending institutions across the United States.

The stability of the checkless society in the United States has been regained through huge

investment in (Informational Technology) IT devices and personnel. Stronger IT-base has

enabled the financial systems and money lending institutions to defend their systems from

attacks by hackers and malware. The financial institutions and customers are still adopting

“paperless” transactions meaning that the United States will soon become a checkless society.
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Work Cited

FedPayUSA. "We’re Becoming a Checkless Society—or Are We?: KC Small Business

Monthly." Ideation (2009). <https://rightbrainideation.wordpress.com/writing/we

%E2%80%99re-becoming-a-checkless-society%E2%80%94or-are-we/>.