CHECK 21 ACT


Check 21 promises to usher in a new era of banking efficiency and service. With it, you will be free to manage your accounts and money using the best of today's technology. The future of electronic banking is coming fast, and we are here to help smooth the way for you!

Congress enacted Check 21 to make check processing and payments more efficient. Over 40 billion checks are written annually in the United States, and they follow a long, winding journey starting at the point of sale or as mail-in payments. They are then cashed or deposited at financial institutions, processed by depository banks, and sent to paying banks and finally returned to payers. Transporting checks takes time and is expensive.

More Efficiency, Better Service

Check 21 enables check processors to take a picture of your check and process it electronically rather than transporting it via truck, train or airplane.

     This New Efficiency Will Have Significant Benefits

 
  • Checks will clear faster, making your account's balance more accurate.
  • Fraud will be reduced, because as checks clear faster, Checknet will be able to identify fraudulent items sooner and minimize merchant losses.

Here's What to Expect

You will be hearing more about check 21 in the weeks and months ahead as banks and businesses gear up for full implementation. In accordance with the law, your bank will be providing more in-depth notification to you later this year about your rights and responsibilities. The Checknet system is already fully implemented for check 21:

  • Consumers who receive their original checks or image statements can expect to begin receiving substitute checks that bear the legend: "This is a legal copy of your check. You can use it in the same way you would use the original check."
  • Imaged checks will accurately represent all the information on the front and back of the original check.
  • Imaged checks are the legal equivalent of an original check for all purposes, including any provision of Federal or State law.
  • Consumers who believe a substitute check was not properly payable will be entitled to special expedited re-credit protections.
  • Banks mush investigate any claim and in most instances either resolve the consumer's claim within 10 business days, or provide the consumer with a re-credit of up to $2,500 pending completion of the bank's investigation. Final determination of any such investigation must be made within 45 days.
  • This latest evolution of check clearing will significantly reduce the amount of time required to move money out of your customers account into yours.
Let us help you get ready for Check 21.

  
 
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