What are some of the common misconceptions regarding Check 21?
• Check 21 does not require banks to provide or accept images. Institutions can continue with conventional check processing. Physical, original checks can continue to be presented for collection, and substitute checks must be machine-readable, just like an original check. • Check 21 does not authorize, regulate, or govern image exchange or check truncation. • The proposed legislation does not address pricing, nor does it state that paying banks will be charged a fee to receive original or substitute checks • Banks will continue to require equipment to scan and, for some institutions, encode and sort the items. It is clear that Check 21 strengthens the business case for decentralized capture since it offers the opportunity to completely eliminate physical transportation. However, the implementation will depend on the individual institution’s business case.
