Though checks are frequently dismissed as a thing of the
past, especially with the growing number of digital payment options available,
they remain an extremely prominent payment method in the United States today.
One of the most pressing issues regarding depositing checks is the time it
takes for checks to clear and for funds to become available.

With that issue in mind, and to learn more about emerging
options for faster access to deposited check funds, PaymentsJournal sat down
with Kevin Nason, director of Product Management at Fiserv, and Sarah Grotta, director
of Debit & Alternative Products Advisory Service at Mercator Advisory
Group.

PaymentsJournalmmediate Funds Access: Fiserv’s Solution to Accelerate Check Deposits for Businesses and ConsumersPaymentsJournal mmediate Funds Access: Fiserv’s Solution to Accelerate Check Deposits for Businesses and ConsumersPaymentsJournaljQuery(document).ready(function ($){var settings_ap16042884 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"16042884",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_84783_2",settings_ap16042884); }catch(err){ console.warn("cannot init player", err); } });

Checks are still
relevant in today’s world

Even though checks are often forgotten, much of the U.S.
payments system still relies on them. “The Federal Reserve recently published
their first cut at the data from its triennial Payments Study in December and
in that report found that there were 14.5 billion checks written for a total of
$25.8 trillion in 2018,” said Sarah Grotta.  

Grotta explained that while check volume is declining, “it’s
still a really significant part of our payments ecosystem, and it’s important to
note that there are far more dollars that move by checks than by all of the
card payments combined, including debit cards, credit cards, and private label
cards.”

There has been some talk of check deposit availability in
the context of faster payments with The Clearing House’s RTP platform and what
is being envisioned for FedNow, but Grotta noted that these platforms “will not
really make checks available instantly.” 

Consumers and
businesses are willing to pay for immediate funds access

Fiserv’s Kevin Nason defined check deposit acceleration as
“making funds available to the customer as soon as they deposit checks, rather
than waiting the typical two to three days it takes for that check to clear.” And
it’s a service that is appealing to consumers and businesses alike.   

Fiserv’s research found that 58% of consumers are willing to
pay for accelerated funds availability from check deposits. Accelerated funds
are frequently used on emergencies like health events, home repairs, or car
repairs. Additionally, 20% of small businesses would leverage accelerated funds