{"id":{"repo_id":"mit","oai_identifier":"oai:dspace.mit.edu:1721.1/57963"},"canonical_url":"https://search.dev.ndltd.org/etd/mit/oai:dspace.mit.edu:1721.1/57963","repository":{"repo_id":"mit","name":"MIT","base_url":"https://dspace.mit.edu/oai/request"},"display":{"title":"Automating the United States payment system","abstract":"Despite the advent of technology, the United States continues to write 66 billion checks each year while other GlO nations have successfully migrated to electronic payment. Although electronic alternatives promise future savings, the payment system is an evolutionary process, not a revolutionary process. Thus, a considerable cost savings can still be realized by improving the current check clearing process. This work discusses the evolution of the payment system, examines the costs, benefits, and the reasons behind check's enduring popularity. Electronic payment alternatives such as automated clearinghouses, credit/debit/smart cards, and home banking are scrutinized for their benefits and feasibility. Check collection improvement methods such as electronic check presentment and check truncation are also studied. One particular system offers end-to-end process efficiency improvement by combining technologies developed at MIT. This system proposes to capture check images using a high performance digital camera, recognize the courtesy amount using patented technology, and transfer the check images with the relevant account information for settlement with a proprietary secure transfer protocol. The cost savings are realized through reduction of encoding operators, elimination of paper check transportation, reduction of fraud, shortened settlement cycle, and improved customer service. This system shows significant promise as the banking solution of tomorrow, and has received a favorable response from both the Federal Reserve Bank and the private sector service providers.","abstract_html":"Despite the advent of technology, the United States continues to write 66 billion checks each year while other GlO nations have successfully migrated to electronic payment. Although electronic alternatives promise future savings, the payment system is an evolutionary process, not a revolutionary process. Thus, a considerable cost savings can still be realized by improving the current check clearing process. This work discusses the evolution of the payment system, examines the costs, benefits, and the reasons behind check's enduring popularity. Electronic payment alternatives such as automated clearinghouses, credit/debit/smart cards, and home banking are scrutinized for their benefits and feasibility. Check collection improvement methods such as electronic check presentment and check truncation are also studied. One particular system offers end-to-end process efficiency improvement by combining technologies developed at MIT. This system proposes to capture check images using a high performance digital camera, recognize the courtesy amount using patented technology, and transfer the check images with the relevant account information for settlement with a proprietary secure transfer protocol. The cost savings are realized through reduction of encoding operators, elimination of paper check transportation, reduction of fraud, shortened settlement cycle, and improved customer service. This system shows significant promise as the banking solution of tomorrow, and has received a favorable response from both the Federal Reserve Bank and the private sector service providers.","abstract_has_math":false,"creators":["Wang, Shih-Yu, 1976-"],"institution":"Massachusetts Institute of Technology","degree_name":null,"degree_level":null,"degree_discipline":null,"degree_department":"Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science","school":null,"contributors":[],"advisors":["Amar Gupta."],"committee_chairs":[],"committee_members":[],"year":1999,"date_issued":"1999","date_published":"1999","updated_at":"2026-07-22T22:21:40Z","subjects":["Electrical Engineering and Computer Science."],"languages":["eng"],"rights":["M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. 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They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission."]},{"key":"dc:rights.uri","label":"Rights URI","values":["http://dspace.mit.edu/handle/1721.1/7582"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier.uri","label":"Identifier URI","values":["http://hdl.handle.net/1721.1/57963"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["Thesis (S.B. and M.Eng.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science, 1999.","Includes bibliographical references (p. 171-174)."]},{"key":"dc:description.abstract","label":"Abstract","values":["Despite the advent of technology, the United States continues to write 66 billion checks each year while other GlO nations have successfully migrated to electronic payment. Although electronic alternatives promise future savings, the payment system is an evolutionary process, not a revolutionary process. Thus, a considerable cost savings can still be realized by improving the current check clearing process. This work discusses the evolution of the payment system, examines the costs, benefits, and the reasons behind check's enduring popularity. Electronic payment alternatives such as automated clearinghouses, credit/debit/smart cards, and home banking are scrutinized for their benefits and feasibility. Check collection improvement methods such as electronic check presentment and check truncation are also studied. One particular system offers end-to-end process efficiency improvement by combining technologies developed at MIT. This system proposes to capture check images using a high performance digital camera, recognize the courtesy amount using patented technology, and transfer the check images with the relevant account information for settlement with a proprietary secure transfer protocol. The cost savings are realized through reduction of encoding operators, elimination of paper check transportation, reduction of fraud, shortened settlement cycle, and improved customer service. This system shows significant promise as the banking solution of tomorrow, and has received a favorable response from both the Federal Reserve Bank and the private sector service providers."]},{"key":"dc:description.degree","label":"Dc Description Degree","values":["S.B.and M.Eng."]},{"key":"dc:title","label":"Title","values":["Automating the United States payment system"]}]}],"canonical_facts":{"dc:contributor.advisor":["Amar Gupta."],"dc:contributor.department":["Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science"],"dc:contributor.other":["Massachusetts Institute of Technology. Dept. of Electrical Engineering and Computer Science."],"dc:creator":["Wang, Shih-Yu, 1976-"],"dc:date.accessioned":["2010-09-01T13:34:00Z"],"dc:date.available":["2010-09-01T13:34:00Z"],"dc:date.issued":["1999"],"dc:description":["Thesis (S.B. and M.Eng.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science, 1999.","Includes bibliographical references (p. 171-174)."],"dc:description.abstract":["Despite the advent of technology, the United States continues to write 66 billion checks each year while other GlO nations have successfully migrated to electronic payment. Although electronic alternatives promise future savings, the payment system is an evolutionary process, not a revolutionary process. Thus, a considerable cost savings can still be realized by improving the current check clearing process. This work discusses the evolution of the payment system, examines the costs, benefits, and the reasons behind check's enduring popularity. Electronic payment alternatives such as automated clearinghouses, credit/debit/smart cards, and home banking are scrutinized for their benefits and feasibility. Check collection improvement methods such as electronic check presentment and check truncation are also studied. One particular system offers end-to-end process efficiency improvement by combining technologies developed at MIT. This system proposes to capture check images using a high performance digital camera, recognize the courtesy amount using patented technology, and transfer the check images with the relevant account information for settlement with a proprietary secure transfer protocol. The cost savings are realized through reduction of encoding operators, elimination of paper check transportation, reduction of fraud, shortened settlement cycle, and improved customer service. This system shows significant promise as the banking solution of tomorrow, and has received a favorable response from both the Federal Reserve Bank and the private sector service providers."],"dc:description.degree":["S.B.and M.Eng."],"dc:identifier.uri":["http://hdl.handle.net/1721.1/57963"],"dc:language.iso":["eng"],"dc:publisher":["Massachusetts Institute of Technology"],"dc:rights":["M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission."],"dc:rights.uri":["http://dspace.mit.edu/handle/1721.1/7582"],"dc:subject":["Electrical Engineering and Computer Science."],"dc:title":["Automating the United States payment system"],"dc:type":["Thesis"]},"updated_at":"2026-07-22T22:21:40Z"}