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Your typical merchant pays 2.1 - 2.4% + about $0.20 per transaction. AMEX is more expensive for most retail merchants.
Part of the reason is profit. Some of the clearing companies along the way sure like holding you $93 for a couple of days. It makes their bank accounts look fat. In their defense there is a certain amount of risk involved in clearing checks for which they must make up in profit.
Another reason is the Fed. The national ACH system is administered by a bunch of 'crats in D.C. instead of by businessmen. There is a new system coming up called Check 21 (or something similar) that will speed this process up.
I see most check clearing corps running 24-72 hour cycles.
Even the 18th century had automatic- its called cash. Just doesn't travel so well. It sure does keep the man from seeing where you are what you are doing though.
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Do what thy manhood bids thee do, from none but self expect applause, for he noblest lives and noblest dies that makes and keeps his selfmade laws...
Sir richard Francis Burton
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