No more checks?!!?

[atpcliff]

Hi!

I just read that the House has approved banks processing checks electronically, instead of physically. The Senate has not approved it yet.

I was wondering about the numbers of pilots and companies that are in this business. I would think that a lot of pilots currently fly checks, and was wondering how many of them would lose their jobs if checks didn't need to be physically moved.

Would most of these companies diversify and survive, or would there be a lot of pilots out on the street?

Cliff
DTW

 

[labbats]

There's something to be said in this day and age about tangibles. With the advent of internet purchases and ebay, everyone went goo-goo and thought that malls would close and people would all just shop in their homes. That isn't the case.

Checks may or may not be on the same page as this, but at the very worst, I'd guess it will take a while for the companies to adapt to e-commerce.

 

[CMH Floater]

Vicious lies

I just read that the House has approved banks processing checks electronically, instead of physically. The Senate has not approved it yet.

 

[wingnutt]

yes...it either has been or is in the process of being done. the Fed itself has been slowly closing down its processing centers over the last few years. however, the impact on check haulers will not be an immediate shutoff of the system, but rather a gradual slowdown of the amount of paperwork being flown over the next few years...eventually turning into a trickle that will force the major haulers to diversify or get out.

...why do you think Airnet got into the Caravan game

 

[upndsky]

This was brought up in another thread on this board not too long ago.

The new bill will "allow" banks to process checks electronically, but there are still many, many technical issues to be sorted out, such as resolution sizes for scans, does it have to be color, compatability between programs and standards used by different banks, etc. Then there's the question of where the electronic transfers will take place: at each bank location or at a central clearing house owned by the bank, which means the checks still have to be flown there. Also, a recent Wall Street article cited a report that said it would initially cost the banks 10 to 12 cents to process a check electronically versus 7 to 9 cents it costs now to have them flown. Of course, that cost would come down over the years as the initial investment in computers, scanners, etc is amortized.

The short story is that eventually check flying will come to a halt, but it will be many, many moons from now. If I'm still flying checks by then, I must have done something really wrong in a previous life.

 

[CMH Floater]

Press Release Source: AirNet Systems, Inc.


AirNet Systems, Inc. Supports Passage of Check Truncation Legislation
Thursday October 16, 5:29 pm ET


COLUMBUS, Ohio, Oct. 16 /PRNewswire-FirstCall/ -- AirNet Systems, Inc. (NYSE: ANS - News) announced today it is pleased that the check truncation legislation, known as Check 21, has successfully passed both chambers of the U.S. Congress. It will now be forwarded to President Bush to be signed and is expected to be enacted into law.

A key provision of the legislation was recently approved in conference committee. It brings more transparency and disclosure regarding issues of costs and revenue attributable to commercial check transportation. The agreement was reached between AirNet and the Federal Reserve following several months of discussions. Based on this amendment, the Federal Reserve will be required to disclose transportation costs and revenue in its annual report annually for the next 10 years. The effective date of this legislation is twelve months following its enactment into law.

Joe Biggerstaff, Chairman and Chief Executive Officer of AirNet Systems, Inc. stated, "This legislation moves the industry closer to a level playing field for all providers of check transportation. It will treat transportation the same as check collection, which makes the entire payments system more efficient and accountable. We applaud the efforts of those in Congress who insisted on full and fair disclosure of these matters. Additionally, we appreciate the cooperation extended by the Federal Reserve to help resolve important issues in this legislation."

Mr. Biggerstaff added, "The language of this legislation will bring forth new and exciting opportunities for all participants in the nation's payment system. We are aggressively proceeding with implementation of our business strategy and look forward to the enactment of this legislation."

 

[Habib]

It Would Hurt

I work for a company in the Midwest, we have about 12 mid-sized twins, we would loose about 3-4 runs if checks were to go away, but I think there are a lot of old people that will never trust the new-fangled way, so as long as they are around and have money, banks will keep using checks, and be forced to fly them. As of late I have only seen an increase in weight of checks, and that is good.

 

[FL000]

I've been wondering for several years what would happen when the banks started going electronic. It won't be too long before checks barely exist at all. I'm down to about 3 checks a month, whereas I used to write 50 or more at times. I could write one less if my mortgage company would take the $12.50 "convenience fee" off their phone and electronic remittance policy.

This is not directly related but shows a trend: my bank no longer sends me canceled checks. I can pull copies, front and back, off of their online checking website.

There will always be a need to ship tangible goods in one form or another. I'm guessing the check haulers will adapt instead of folding.

 

[Flic1]

FL000- Good point.

I don't think it is as much of an issue of the banks going electronic as it is people just not writing as many checks. I pay EVERYTHING online now. I write 1 check per month. With an increased amount of people paying online and with checkcards, check use is definitely going the way of telephones that have cords. I barely use stamps anymore...

 

[generaltso]

I have probably written 5 checks in the past year. Everything is electronic. There is no doubt that paper checks are becoming obsolete.

However, if you look at how the internet has evolved especially with respect to online shopping... there is plenty of stuff to be shipped.

I think the check haulers and cargo companies will have to adapt to survive.