Unintended consequences
I've just learned what caused the banks to start using electronic copies of checks instead of the actual checks.
It is ... September 11, 2001!
Before, the checks had to be physically delivered to your bank for drawing. But on 9/11, when all airplanes were grounded, billions of dollars in checks where left stuck in those planes unable to reach their destination!
P.S.
And right now there is a patent case against many banks by the patent holder for this electronic check copy technology. It looks like some banks (Merrill Lynch and J.P. Morgan Chase) have obtained proper licenses, but most banks did not do so. Instead, the banks have hired lobbyists who are pushing for a special law that would give immunity to the banks in this particular litigation! (Does it remind anyone of Terri Shivo case?) Moreover, the law would also include $1 Billion of public (!) money to pay to the plantiff so that they do not touch the banks!
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021303731_pf.html
It is ... September 11, 2001!
Before, the checks had to be physically delivered to your bank for drawing. But on 9/11, when all airplanes were grounded, billions of dollars in checks where left stuck in those planes unable to reach their destination!
P.S.
And right now there is a patent case against many banks by the patent holder for this electronic check copy technology. It looks like some banks (Merrill Lynch and J.P. Morgan Chase) have obtained proper licenses, but most banks did not do so. Instead, the banks have hired lobbyists who are pushing for a special law that would give immunity to the banks in this particular litigation! (Does it remind anyone of Terri Shivo case?) Moreover, the law would also include $1 Billion of public (!) money to pay to the plantiff so that they do not touch the banks!
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021303731_pf.html