A recent study the by Federal Reserve tells us some things we already know about payments in the US. As consumers, we're carrying less cash, writing fewer checks, and using our debit cards to buy our morning coffee. However, this recent study offered some surprising information on check and debit card payments, dollar value of transactions and growth in consumer-to-consumer checks.

The 2010 Federal Reserve Payments Study is conducted triennially to estimate and study trends in noncash payments in the US. The current report shows an increase in the number of noncash payments to 108.9 billion, a 4.6 percent annual growth rate since 2006. Debit cards take up the largest slice of the payments pie, with 37.9% of noncash payments being made by debit cards. Paid checks are the next largest slice at 24.4%, followed by credit cards at 21.6 % and ACH at 19.1% (which includes written checks converted to ACH). Prepaid cards represent 6% of noncash payments. The "electronification" of our payment system continues and over the last three years, the percentage of checks cleared electronically has more than doubled.

Checks are big. We may be writing fewer checks, but the ones we do write add up to $31.6 trillion. (The total value of noncash payment is $72.3 trillion.) What's more, the average value of a check transaction is $1,294. Compare that to the average value of PIN debt cards at $39 per transaction ($37 for signature debit transactions). And checks aren't yet going away. The study also shows that while consumers wrote fewer checks to businesses than in the previous study, there was a 3% increase in consumer-to-consumer checks.

What does that mean for businesses that accepts payments for goods and services? Accepting several different payment methods from your customers or clients is important, as there is not a single, all encompassing payment method that satisfies all consumers. Today's consumers continue to pay by check, debit, credit and cash. We like having a choice and want to use the payment method most convenient and secure at the time.

Payment providers, such as CrossCheck, can help businesses better serve their customers and clients by providing services that streamline check handling through remote deposit capture and electronic processing, reduce bad checks and provide additional features such as check guarantee and web reporting.

Taking a look at new payment technology can result in cost savings and added convenience for all types of businesses. Improved customer service can also mean improved sales. And that's good news for all. For information on check services, check guarantee and remote deposit capture, contact CrossCheck at (888) YES-2CHX (937-2249).