What is Check 21 and how does it affect my receiving my original cancelled checks?
Check 21 is a federal law that went into effect on October 28, 2004. It was designed to help banks process checks faster and more efficiently by handling the processing of checks electronically, instead of having to physically move paper checks from one bank to another. For example, you write a check and mail it to a friend. Your friend takes your check to his bank and deposits it in his account. His bank takes a picture of the front and back of your check, and along with the payment information, transmits it electronically to your bank for payment. If you require a paper copy of a cancelled check, the bank will use the electronic picture and payment information to create a paper “substitute check.
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- What is Check 21 and how does it affect my receiving my original cancelled checks?
