Anyone can order personal checks direct from a commercial printer and save themselves a bundle
. Personal checks arose from an interesting development historically. Throughout history there has been a necessityfor the transfer of value. Safer and reliable methods of transfer began thousands of years ago.
A check is a negotiable instrument. It instructs a financial company to pay someone a specific amount of money from a specified account held at an institution. It may be for a person or a company that the maker or depositor originates from.
Written checks have a long history dating back to the early Roman days. As early as 1 BC the need to eliminate the need to carry around cash and safely trade using checks started to gain popularity. Checks since then have been used as preferred instruments of trade.
Carrying money around to do business could be very risky for an ancient merchant. Any draft or bill of exchange which could later be redeemed and payment guaranteed at a later time was a safer way to do business.
The important parts of a check are: 1. signature identification of the drawer 2. currency amount 3. payee 4. date of issue 5. place of issue 6. check number ID and 7. routing number.
The routing number is a 9 digit number. The first 4 numbers indicate the Federal Reserve bank processing center.
This is followed by digits 5 through 8, identifying the specific bank served by that check -processing center. Digit 9 is a identification verification digit, computed using a complex algorithm of the previous 8 digits. The account number is assigned independently by the various banks.
Routing numbers, or fractional routing numbers as they are known, are comprised of a denominator that reflects the first 4 numbers of the routing number. The ABA or hyphenated numerator indicates a city code.
In today's fast paced world one has the choice to order checks online or from the financial institutions. When one purchases online, they're able to purchase direct from check printer manufacturing concern. When done so, they're able to save about 50% off what the banks charges.