Check 21 Speeds Check Processing
On October 28, 2004, the Check Clearing for the 21st Century Act (or Check 21), went into effect. This new law was designed to modernize the way checks are processed, improving the efficiency of our country's payment systems.
How It Works
Under the law, your original check may be converted to an electronic image or a “substitute check”. A digital copy of your check is transmitted to expedite the payment and reduce the chances of fraud. The shorter processing time makes it less likely an identity thief will come into possession of your personal financial information.
What Does This Mean To You?
In addition to increased fraud prevention, accelerated check processing also means the “float” – the amount of time between the writing and the cashing of the check – will decrease.
If you request a copy of a check and it has been converted to an electronic file, you will most likely receive a substitute check. A substitute check is a paper reproduction (front and back) of the original check. These substitute checks are legally equivalent to the original check to prove payment.
If you believe the substitute check is not accurate, you can ask us to investigate the transaction and if warranted, credit your account. In the unlikely event of a check being paid twice, for the wrong amount, or in error, you will have 10 business days to request credit up to the first $2,500. Any remaining balance will be re-credited within 45 calendar days.