However, checks also remain a highly convenient payment instrument with a long and tested history; they are unlikely to be completely eliminated as a major payment instrument any time soon. As a result, the financial industry and the Federal Reserve Banks face the prospect of declining demand for paper-check processing, but also significant uncertainty about the extent and timing of the decline.
Nevertheless, we know that over time the efficient use of resources will require reductions in excess production and processing capacity as the market demand for checks and check processing declines.