A History of Bank Checks
March 31, 2008
Through all of time, no matter how many times the bank system makes changes, the bank checks remain constant. Today, just as the Romans of the ancient empire, we depend on bank checks as promissory notes.
Earliest use of bank checks
Ancient Romans are thought to have been the first to use a form of bank checks, though the system was not nearly as complicated or regulated as it is today. Records indicate that they used what were known as praescriptiones as early as 100 BC. Nearly four hundred years later, bankers in the Persian Empire utilized a similar system of credit.
The Medieval Period
During the middle ages, Europeans also made use of their own bank check system. To prevent theft, the Knights Templar was developed. This banking system would keep a person’s money for them while that person traveled cross-country. The person was responsible for holding a proof of claim draft, which would allow them to retrieve their money. This proof of claim draft was the earliest known form of a paper check, similar to that of today. It is believed that this was inspired from the Muslims that had utilized this method a few hundred years before.
Bill of Exchange System
Today’s check system is derived from the “bill of exchange” which was developed in earlier times by the bankers of that period. This system allowed bankers to receive bill payments by making use of bank mandated orders. People were then able to buy and sell goods without handling gold or other currency, making trade much easier and safer for the merchants.
Bank checks in the United States
In the U.S., bank checks were brought over during the Colonial period by European individuals. The system became prevalent and popular in Europe during the early 1700s, so it was natural that the colonists would pick up on the system. As banks have become more complicated in the last 100 years, more and more systems of control and security have been added to bank checks in order to protect the consumer.