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Check 21 FAQs
(From American Bankers Association press release)
What is Check 21?
Check 21 (The Check Clearing for the 21st Century Act) allows banks to replace original paper checks with substitute checks that are made from digital copies of the originals. Back to Check21
Why was Check 21 created?
Check 21 was created to reduce the time, risks and costs associated with paper check processing. Currently, checks travel on trains, planes and automobiles during the clearing process. When Check 21 becomes effective, banks will be able to send digital images of checks electronically. This will eliminate the need to physically transport paper checks between banks. Check 21 will also reduce uncontrollable transportation delays that can be caused by weather or natural disasters. Back to Check21
What does Check 21 do?
Check 21 will create a more efficient check processing system, without changing the way consumers write checks. It simply requires banks and customers to accept paper copies of their original checks called “substitute checks.” Back to Check21
What is a substitute check?
A substitute check is a paper copy of the digital image of your original check-both front and back, with all endorsements-and is about the size of a business check. Check 21 legislation sets standards for quality and allows for substitute checks to be legal copies of the originals. All banks must accept the substitute check as they would the original document. Back to Check21
How will Check 21 impact me?
If you receive your canceled checks with your statement, you may receive a mix of substitute checks and original checks. If you don’t receive your canceled checks, obviously you won’t notice a change in their appearance, but you should be aware that there will be less “float time,” particularly for out-of-town checks. Because check processing will be faster with the implementation of Check 21, funds may be removed from your account sooner than in today’s system. As always, make sure you have enough money in your account before writing a check.The Consumer Awareness information will be updated soon.
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