Checks disappearing, jobs too; Law fostering electronic transfers cuts costs sharply but pares NY jobs.(News)

Crain's New York Business, May, 2004

Byline: tom fredrickson Checks, the paper dinosaurs of the 21st century, are staring at a meteor that will soon crash into their world. Already losing out to debit card usage and online bill payment, checks will come under even more pressure when federal legislation called Check Clearing for the 21st Century, or Check 21, takes effect in late October.

The change could make banking cheaper and more efficient, to the benefit of banks and consumers alike. At the same time, it will cost hundreds of New York area jobs as the labor-intensive work of processing and transporting checks fades away. "Check 21 represents a huge shift in how checks are collected and handled,'' says Tom Gregory, a vice president at Commerce Bank. Check use is already in speedy...

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