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April 2007

News & Media

Alaska Residents Put Down Their Checks 
April 10, 2007 

ANCHORAGE – Alaska is not a paperless society, but it’s getting close. By some estimates, Alaskans write about half the checks than they did just two years ago, reports the Alaska Journal of Commerce.

“Checks are becoming a thing of the past,” Greg Gillquist, vice president of marketing for Cornerstone Credit Services, told the newspaper.

First National Bank Alaska alone has seen a 27 percent decline in its check processing between 1998 and 2006. Between 2005 and 2006, Denali Alaskan Federal Credit Union saw a 9 percent decline in the number of checks ordered through its check vendor, writes the newspaper.

Meanwhile, both banks saw their debit card transactions increase. Between 2005 and 2006, Denali Alaskan saw a 12 percent increase in the number of debit card transactions, while First National saw its debit card transaction volume more than triple since 2000.

But for many former check-writing customers, credit is the way to go, writes the newspaper.

“People are saying that if they are going to spend the money, they want the (airline reward) miles for it,” added Gillquist. “People who buy with a credit card typically spend more than when they buy with checks. That can be a huge increase for the business.”