Check 21 Information

What Check 21?

Effective October 28, 2004, the Check Clearing for the 21st Century Act – or "Check 21" will bring the nation's check payment system into the digital age and allow consumers to benefit from better and faster financial services.

Improved efficiency in check processing is the main goal of Congress with the enactment of "Check 21".

Check 21 will improve today's existing system that forces over 40 billion checks a year to be exchanged physically and often transported around the country several times before the payment cycle is completed.

How will Check 21 benefit you?

Detects Fraud Faster – Since check clearing is faster, fraud can be detected and investigated sooner which brings about a quicker resolution.

Faster Check Clearing – You get a more accurate picture of your account balance.

Quicker Response – Check images can be accessed faster to resolve questions.

More Secure Check Information – Checks do not have to be physically transported via truck, train or plane.

How? With a substitute check…

Check 21 allows a new approach – it makes legal a Substitute Check which is a digital picture of your original check which can be processed electronically.

A substitute check is the legal equivalent of your original for all purposes including requirements of state and federal law

The substitute check will feature, in bold print, a legend that states "this is a legal copy of your check – you can use it the same way you can use the original check"

A substitute check provides legal proof that you made payment

You may receive a substitute check when you request a copy of your check

Important Note

Please remember, since these changes will drastically reduce the amount of time it takes to move money from your account to pay those who receive your checks, you will need to have sufficient funds in your account to cover the payment at the time you write the check.