Though the banking system has undergone many changes over the course of time, bank checks are one of the constants that have always been a staple of the system. People and companies have been using bank checks as promissory notes as far back as the ancient Roman Empire and the practice of ordering bank checks continues today.
First Bank Checks
Ancient Romans are thought to have been the first to use a form of bank checks, though the system was not nearly as complicated or regulated as it is today. Records indicate that they used what were known as praescriptiones as early as 100 BC. Nearly four hundred years later, bankers in the Persian Empire utilized a similar system of credit.
The Medieval Period
During the middle ages, Europeans also made use of their own bank check system. To prevent theft, the Knights Templar was developed. This banking system would keep a person’s money for them while that person traveled cross-country. The person was responsible for holding a proof of claim draft, which would allow them to retrieve their money. This proof of claim draft was the earliest known form of a paper check, similar to that of today. It is believed that this was inspired from the Muslims that had utilized this method a few hundred years before.
Bill of Exchange
The foundations of the modern checking system have derived from what was once referred to as a “bill of exchange” from early bankers. By the use of this system, early banks would allow the customers to pay necessary bills through the use of bank’s mandatory orders. This, of course, made distance commerce much easier, given how people were able to engage in trade practices without the requirement of having a great deal of gold or other hard currency on hand. This was, overall, a deeply necessary change, since carrying around significant amounts of coin was both burdensome and potentially disastrous for traveling merchants.
Bank Checks in the United States
Bank checks made their way to the United States by the Europeans during the Colonial period. Since the Europeans had already been dependent on the system since the early 1700s, it didn’t take long for the Americans to adopt the system. Of course, the bank systems continue to evolve, especially in the past century, thus more control and security exists in present time. Bank checks pose as a form of protection to the consumer.
