Checking Account Invention

About Checking Account Invention

The concept of checking accounts, where depositors can write instructions to their bank to transfer funds, developed gradually. The Bank of Amsterdam allowed depositors to transfer funds on its books in the early 1600s. The British cheque, drawn on a bank, appeared in the 1600s. The word check comes from the English game of chess, referring to a counterfoil used to prevent fraud. Commercial Bank of Scotland introduced printed checks in 1811. The Magnetic Ink Character Recognition system developed by the American Bankers Association in 1956 allowed automated check processing. Check usage peaked in the 1990s and has declined with electronic payments, but checks remain in use for certain transactions.