How does Check 21 make the check clearing process more efficient?
Check 21 allows financial institutions to truncate checks at any time during the check clearing process. Truncation removes the original check from the clearing process and an electronic image of the check can then be sent between financial institutions for clearing. Because the original check does not need to be physically transported through each stage of the clearing process, checks can clear more quickly and transportation expenses can be reduced. Back to top If checks clear more quickly, will check “float” be reduced? Yes. Because paper checks will no longer need to be transported between financial institutions, checks will clear much more quickly. In fact, with the introduction of Check 21, checks may clear in as little as one day. Until now, it was usually safe to write a check a day or two before a deposit was made to your account. With the introduction of Check 21, a good practice would be to make sure that a check is covered before it is written. You can see up-to-date accoun
