Founded in 1931 as Superior Press, our journey began as a check printer, grounded in the foundational principles of quality and trust—essential elements of every financial transaction. Over the decades, as the financial landscape has transformed, so have we, continually expanding and adapting our services to meet the evolving needs of financial institutions across America. Reflecting on our origins in check printing, we explore the history of the check and its enduring influence on commerce.
The Origins of the Check: From Ancient Beginnings to American Commerce
The concept of a check dates back over 2,000 years to ancient Mesopotamia and Persia. In Babylon, as early as 3000 B.C., merchants used clay tablets as a primitive form of a promissory note, functioning much like a check does today. These early instruments were used to facilitate trade without the need to carry large sums of physical currency.
By the 9th century, a similar concept had emerged in the Islamic world. The Arabic word "sakk," from which the word "check" is derived, referred to a written promise to pay for goods upon delivery. These early checks became crucial for merchants trading along the Silk Road, allowing for secure and efficient commerce over vast distances.
By the 13th century, checks had spread to Europe, particularly in Italy, where merchants used them to avoid the risks of transporting cash. The Medici family, famed for their banking acumen, were among the first to formalize the use of checks, laying the groundwork for modern banking practices.
Checks arrived in America during the colonial era. Initially, they were used predominantly by wealthy individuals and businesses. The first recorded American check was written in 1681 by Nicholas Van Dam, a New York merchant.
By the late 1800s, checks had become an integral part of American commerce. The introduction of federal banknotes standardized the banking system, making checks more accessible to the general public. The expansion of railroads and telegraph lines further facilitated the use of checks, as they allowed for quicker and more secure transfers.
The Rise of Checks in America
After World War II, checks became the preferred method of payment for both individuals and businesses, driven by a booming economy and the rise of the middle class.
The Federal Reserve reported that the number of checks written in the U.S. soared from 8.5 billion in 1952 to over 85 billion by 1995, making them the dominant payment method of the time.
Key innovations during this period, such as Magnetic Ink Character Recognition (MICR) technology, revolutionized the processing of checks. MICR allowed banks to automate check clearing, drastically reducing processing time and costs.
The Decline of Checks: The Digital Revolution
The turn of the 21st century brought about significant changes in the payments landscape, with digital transactions gradually overtaking checks. Credit and debit cards, online banking, and mobile payments offered consumers faster and more convenient ways to manage their finances.
According to the Federal Reserve, the number of checks written in the U.S. peaked in the mid-1990s and has steadily declined since. By 2009, the volume of checks had dropped to 33 billion, less than half of what it was at its peak. As of 2023, almost half of Americans had not written a check in the past year.
The Future of Checks: A Niche but Enduring Role
While digital payments have overtaken checks in many areas, checks are unlikely to disappear entirely. They continue to play a vital role in specific business transactions, particularly in B2B payments, where 40% of B2B payments are still made by check in the United States.
Superior is well-positioned to support businesses that continue to use checks by offering a range of customized checks and cash management products.
From its ancient origins to its modern-day role in American banking, the check has been a crucial tool in the evolution of commerce. While digital payments have transformed the way we all conduct financial transactions, checks continue to hold a niche but significant place in the economy.
