ECONOMICS REPORT - New Law Changes U.S. Checking System

ECONOMICS¹ REPORT - New Law Changes U.S. Checking System
By Mario Ritter

Broadcast: Friday, August 27, 2004

This is Gwen Outen with the VOA Special English Economics Report.

A change in the United² States banking³ system will affect how thousands of millions of dollars in payments⁵ are processed. The new law is known⁶ as Check Twenty-one. It takes effect in October.

A check is a written order to a bank to pay an amount of money. People or businesses keep money in a bank. They write paper checks to spend that money.

The Check Twenty-one law changes the way checks are processed. Today, people write checks and send them as payment⁴. Then they have the right to have their checks returned to them from the bank for record keeping. After October, they will no longer have that right. Banks will keep only electronic⁷ images of the checks.

Americans will be able to ask for electronic copies of their checks so they can dispute⁸ mistakes. But there is a limit to how much money they can receive if a mistake has been made. Also, no rules limit how much the electronic copies can cost.

In another big change, checks will be approved for payment sooner. This will end what is called the "float." This is the average time between when a check is written and when it is paid. A check floats for several days as it is transported from bank to bank to be approved for payment. Every day, thousands of millions of dollars float through the system uncollected for payments.

With the new law, most checks will be approved in less than one day. However, although checks will be approved sooner, banks will not be required to provide payments sooner.

Americans write more checks than people in any other nation. They also use electronic money exchanges more than anyone else.

The International Business Machines company makes equipment that processes payments. It says that processing one paper check costs from seven to fifteen cents. In the year two thousand, Americans wrote about forty-three thousand million checks. Banks spend thousands of millions of dollars processing checks. But Americans are writing fewer checks each year. IBM says this creates cost pressures on banks.

The new law does not necessarily⁹ reduce costs for all banks. Banks that do not have the technology to electronically¹⁰ process checks may have to seek the help of other banks. Or they may have to end their checking services.

This VOA Special English Economics Report was written by Mario Ritter. This is Gwen Outen.

1 economics   

n.经济学，经济情况

参考例句：

• He is studying economics,which subject is very important.他正在学习经济学，该学科是很重要的。
• One can't separate politics from economics.不能把政治与经济割裂开来。

2 united   

adj.和谐的；团结的；联合的，统一的

参考例句：

• The whole nation is closely united.全国人民紧密团结。
• The two men were united by community of interests.共同的利益使两个人结合在一起。

3 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

4 payment   

n.付款，支付，偿还，偿还，报应

参考例句：

• I gave ten pounds in payment for the goods I bought.我买那些东西付了10英镑。
• This last payment will wipe out your debt to me.这最后一笔付款将了结你欠我的债务。

5 payments   

n.支付，付款，缴纳，报酬( payment的名词复数 )；付出的[要付出的]款项；报答，报偿

参考例句：

• Welfare payments cease as soon as an individual starts a job. 一旦就业，即停发福利救济。
• The law can compel fathers to make regular payments for their children. 这项法律可强制父亲定期支付子女的费用。

6 known   

adj.大家知道的；知名的，已知的

参考例句：

• He is a known artist.他是一个知名的艺术家。
• He is known both as a painter and as a statesman.他是知名的画家及政治家。

7 electronic   

adj.电子的；n.[-s]电子学，电子设备

参考例句：

• It is an electronic device with many uses.这是一部具有多种用途的电子仪器。
• Father needs a new electronic shaver.爸爸需要一个新的电子剃须刀。

8 dispute   

n.争端，分歧；v.争论，争吵，辩论，辩驳

参考例句：

• They are trying to find a way of settling the dispute.他们正设法寻找解决争端的办法。
• The parties to the dispute should be more polite to each other.争执双方应相互礼貌些。

9 necessarily   

adv.必要地，必需地；必定地，必然地

参考例句：

• More work does not necessarily call for more men.增加工作量不一定就要增添人员。
• A voter must necessarily be no younger than eighteen.选民必须在18岁以上。

10 electronically   

adv.电子地

参考例句：

• The information is electronically transmitted to schools and colleges… 信息通过电子方式传送到各所学校和学院。 来自辞典例句
• All transactions, from banking to shopping, will be performed electronically. 所有的活动，从跑银行到买东西，都可通过电脑来完成。 来自辞典例句