What is truncation?
Truncation is the removal of an original paper check from the check process and creating a substitute check or, by agreement, sending information relating to the original check. No agreement is required to transfer a substitute check for consideration. In other words, truncation means the consumer does not receive the actual canceled check back with their monthly statements. Important note: Any institution that decides to truncate an item will accept liability for any damages incurred by parties involved with the transaction.
