The Traditional Model of Payments and the Problems with Cheques

In the past, payments involved making verbal promises to pay for groceries, which would be recorded on a piece of paper called a check. The check could be taken to the bank to exchange the promise for actual money. However, this process was inefficient and involved many couriers. Eventually, a clearing house system was developed to handle check processing electronically. Despite its convenience, the check payment method is flawed and vulnerable to fraud.