PRICING A BANKING SERVICE--THE SPECIAL CHECKING ACCOUNT.

The article discusses checks and their importance as a medium of exchange that is free of regulation, and, it seems, analysis. This article examines the price determinants and price impact in New York State of special banking services known under several names that include Checkmaster, Check-o-matic, or Autocheck. The article focuses on the cost reductions that result in an average price, the profitability of the service, and the insulated nature of the pricing component of checking services. Structure of the price, bank revenue and price, bank costs and profits, comparative prices, and competition are all considered.